1
What is the annual dividend paid by the investment and divided by the investments current market value expressed as a percentage called?
Current yield
A market in which an investor purchases securities from a corporation through an investment bank or some other representative of the corporation
Primary market
Is more potential growth in common stock an advantage for preferred stockholders
No, preferred stock doesn't change very much
A stop order requests that a stockbroker do what?
selling a stock for a specific price that usually is a lower price
Why do corporations split their stock
The price gets too high so they split it to get an ideal price for the stock
This is a network of dealers who buy and sell the stocks of corporations that are not listed on securities exchange, what's that market known as?
OTC Or Over The Counter Market
This type of stock remains stable in times of decline in the economy
Defensive stock
When talking about preferred stock a participation feature on it provides preferred stockholders with what?
Buying a stock on margin is example of what kind of investment strategy?
Short term
What kind of request allows an account executive to decide whether to buy or sell a security and at what price without consulting you?
Discretionary order
Who sells its shares openly in stock markets where anyone can buy them
Public corporation
Total amount of stocks and bonds issued by a corporation
Capitalization
Financial professionals consider shares of AT&T stock to be what type of stock
Blue chip
The price a stock is selling for on the open market
Current market value
What are the two major stock exchanges in the U.S
NYSE and NASDAQ
This pays higher than average dividends compared to other stock issues
Income Stock
This is a calculation that includes the annual dividend as well as any increase or decrease in the original purchase price of the investment
Total return
This type of stock has is steady earnings and continues paying dividends even during economic decline
Defensive stock
An investor can buy stock without going through an account executive by doing what?
Reinvesting dividends
What does NASDAQ stand for
National Association of Securities Dealers Automated Quotations
Request to buy or sell stock at the current market value
Market order
This is a legal form that asks shareholders to transfer their voting rights, what's this form called to allow somebody else to vote for you
Proxy
What is the formula for calculating the total return on a stock?
Current return + capital gain
This type of stock is considered to be conservative and safe investment
Blue chip
"Don't put all your eggs in one basket" is an example of?
diversification