Stock Market Basics
This is the place where buyers and sellers trade shares of companies.
Stock Market
This is money you earn from owning a stock, usually paid quarterly.
Dividend
This is the first step before investing — understanding where your money goes.
Budgeting
This term describes the first time a company sells its stock to the public.
IPO (Initial Public Offering)
This measure shows how much a stock’s returns move compared to the overall market, often using the S&P 500 as the benchmark.
Beta
Small piece of ownership in a company
Share
This term means spreading your money across different investments to reduce risk.
Diversification
This is the idea of letting your money grow by earning returns on past returns.
Compound Interest
This type of stock represents companies that grow quickly and reinvest profits.
Growth Stock
This formula calculates the expected return of an investment using risk‑free rate, beta, and market return.
Capital Asset Pricing Model (CAPM)
This number shows how much one share of a company costs
Stock price
This is the profit you make when you sell a stock for more than you bought it.
Capital Gain
This long-term plan helps you stay calm when the market goes up and down.
Investment Strategy
This term describes the portion of a company’s profits that is reinvested instead of paid out to shareholders.
Retained Earnings
This measure evaluates how sensitive a bond’s price is to interest rate changes, using the weighted average time until each cash flow is received.
Macaulay duration
This term describes a market where prices are rising and investor confidence is strong.
Bull market
This number shows how much a stock’s price moves up and down.
Volatility
This type of account allows investments to grow tax‑free if used for qualified education expenses.
529 plan
This type of stock gives shareholders voting rights and ownership but usually no guaranteed dividends.
Common stock
This portfolio‑optimization technique finds the combination of assets that minimizes risk for a given return by solving a quadratic equation subject to constraints, often using matrix algebra and Lagrange multipliers.
mean‑variance optimization under Modern Portfolio Theory
This organization regulates U.S. financial markets and protects investors from fraud.
SEC (Securities and Exchange Commission)
This type of order lets investors set the exact price at which they want to buy or sell a stock.
Limit Order
This term describes the practice of reviewing a company’s financial statements before investing.
Fundamental Analysis
This measure shows how efficiently a company uses its assets to generate revenue.
Asset turnover
Who is the club sponsor of YIC?
Mr. Tingstrom