Investments
Shares of ownership in a company
stock
Number of Shares x Cost per Share
Cost of Investment
True or False: Government Bonds are riskier than Corporate Bonds.
false
Stocks that have a history of paying high dividends
income stocks
True or False: The two types of stocks are common and preferred.
true
A method using a ratio to increase the number of outstanding shares and decrease the current share price.
stock split
Sale of Investment – Cost of Investment =
profit
The two ways to make money on your investment
capital gains and dividends
These stocks offer little dividends and reinvest their profits into the business
growth stocks
Stocks are Debt Securities and Bonds are ________ Securities
Equity
Part of a corporation’s profits paid to stockholders
dividends
Selling Price - Original Purchase Price =
Capital Gain
The general rule for the risk v. reward relationship is
the greater the risk the greater the reward
Stocks of well-established corporations
blue chip stocks
What is the stock market index of 30 prominent companies listed on stock exchanges in the United States is called?
dow jones industrial average
Benchmark that investors use to judge the performance of their investments
stock index
(Current “Profit” + Dividends on Stock) / (Purchase Price + Commission) =
Return on Investment
Investors who want to invest the same dollar amount over a period of time
dollar cost averaging
These stocks include utilities and drug companies
defensive stocks
What is the term for how fast an investment can be turned into cash?
liquidity
The Russell 2000 is comprised of what companies?
The smallest 2000 companies of the Russell 3000 Index.
Current Stock Price:$40/ Share
Dividends Received for the Year: $1/Share
Purchase Price: $38/Share
Commission: $19
Number of Shares Owned: 100
How much did you make on your investment (in dollars)?
$281
Short term investment strategy is less than what amount of time?
less than a year
These stocks include airlines and travel resorts
cyclical stocks
What is the largest ELECTRONIC stock system and market in the world?
Nasdaq