Indexes
This U.S. stock exchange is known for being home to big tech companies like Apple, Amazon, and Microsoft.
NASDAQ
These are shares of ownership that most people buy, giving holders voting rights in company decisions.
Capital gains are taxed differently depending on how long you hold the investment. Selling an asset within one year of purchase creates this type of capital gain.
Short term capital gain
In 1792, 24 stockbrokers signed this agreement under a tree in New York, which is considered the beginning of the New York Stock Exchange.
The Buttonwood Agreement
This term refers to the total value of a company’s outstanding shares of stock.
Market Capitilization
This famous index tracks 30 large U.S. companies like Coca-Cola, Boeing, and McDonald’s.
The DOW
These stocks belong to large, well-established, and financially stable companies known for steady performance and dividends—like Apple or Coca-Cola.
Blue Chip Stocks
Selling an investment after more than a year creates this type of capital gain, which is usually taxed at a lower rate than short-term gains.
What rate do they usually get taxed?
Long term capital gain | 15-20%
This term describes a market where prices are rising and investors are optimistic. Its opposite describes falling prices and pessimism.
Bull Market
Companies are often categorized by market cap size. A company with a market cap over $10 billion is called this.
Large Cap
Unlike other major indexes, this one is price-weighted, meaning companies with higher stock prices have a greater impact on the index’s movement.
The DOW
These low-priced, high-risk stocks, often trading for under $5 a share, are known for their volatility and are usually not listed on major exchanges.
Penny Stocks
This IRS tax form is typically provided at the end of the year and reports your investment income, including capital gains.
1099
This federal agency, created in 1934 after the stock market crash of 1929, regulates the securities industry and protects investors.
Securities & Exchange Commission
A company with a market cap between $2 billion and $10 billion is classified as this.
Mid Cap
The DOW and NASDAQ are both U.S. stock exchanges, but this one is known for having a physical trading floor where brokers still make trades in person.
NYSE
This type of stock typically does not offer voting rights, but shareholders receive fixed dividends before common stockholders are paid.
Preferred Stocks
You bought 100 shares of a stock for $50 each and sold them 8 months later for $70 each. You are in the 22% tax bracket for short-term gains.
$440
This illegal practice occurs when someone buys or sells stock based on private, non-public information about a company.
Insider Trading
This term describes the tendency of the stock market to rise in the last week of December and the first two trading days of January.
Santa Claus Rally
This stock index is market-cap weighted, meaning larger companies have more influence on its performance, and it’s often considered the best overall measure of the U.S. economy.
The S&P 500
If a company goes bankrupt, this type of stockholder is paid before common stockholders but after bondholders—a key reason some investors see it as a mix between stocks and bonds.
Preferred Stocks
You bought 200 shares of a stock for $60 each and sold half of them 2 years later for $90 each, and the other half 3 years later for $120 each. You are in the 15% tax bracket for long-term gains.
Question: How much tax do you owe on your total long-term capital gains?
First half sale:
Gain per share: $90 − $60 = $30
Total gain: 100 × $30 = $3,000
Tax: 15% × $3,000 = $450
Second half sale:
Gain per share: $120 − $60 = $60
Total gain: 100 × $60 = $6,000
Tax: 15% × $6,000 = $900
Total long-term capital gains tax: $450 + $900 = $1,350
The Buttonwood Agreement in 1792 is considered the start of the New York Stock Exchange. Over 100 years later, a major event caused the creation of the SEC in 1934 to regulate trading. Name the event, the year it happened, and explain why it led to the SEC’s creation.
The Great Depression 1929
This ticker symbol, V, represents a company that started as a credit card network and is now a major player in global digital payments.
Visa