Vocabulary
Shares of ownership in a corporation
Stock
Chad bought 50 shares of Chipotle stock for $396.33 per share. What did he pay for all his shares?
$19,816.50
A prolonged period of decreasing stock prices (20 or more%)
Bear Market
debt obligations of corporations or state or local governments
bonds
One way to minimize risk is through
Diversification
The ability to turn an asset into cash
liquidity
Chad bought 1 share of Macy's stock for $10 on 11/1/2016 but sold it 3 years later for $13.54.
A: How much money did he gain/lose with this one share?
B: What is his return on investment?
A: -$3.54
B: -35.4%
When the stock market decline of 10% is called a
Correction
penny stocks
The chance that an investment's value will decrease
A period of time when stock prices are steadily increasing and reach 20% or more over their lowest state
Bull Market
Tori bought 1 share of Chipotle stock on 11/1/16 for $396.33. Then, 4 years later sold it for $778.38.
A: How much money did she gain/lose with this stock?
B: What was Tori's return on investment?
A: $382.05
B: 96%
You invested $1,200 in a mutual fund. Your account now has a value of $1,333. Your gain was:
$133
Pooling of money from many investors to buy securities
mutual fund
The use of long-term saving to generate a financial return
Investing
Portfolio
Tori bought 1 share of Macy's stock on 11/1/2016 for $33.38. Four years later, she sold it for $5.09.
A: How much money did she gain/lose with this stock?
B: What is her rate of return
A: -$28.29
B: -85%
Money paid to stockholders from the corporation's earnings (profits)
Dividends
Owning a collection of TY Beanie Babies is an example of this type of investment
High Risk investment
A summary of a corporation's financial results for the year and its prospects for the future.
Annual Report
A rise in the general level of prices
Inflation
Chad bought 50 shares of of Nike for $396.33 per share and sold them 4 years later for $778.38 per share.
A: What is the value of his shares 4 years later?
B: How much money did he gain/lose with his stock?
A: $38,919
B: $19,102.50 (96%)
People who own shares of stocks are called
stockholder or shareholder
Annuity
What is the first stage of investing called?
Put and Take Account