What are securities
financial investments that can be bought/sold in the global marketplace
what do stocks represent
represents a percentage of ownership in a company
blue chip
a strong history of performance (meaning they normally bounce back even during economic down turns); considered a safe investment
why do companies issue stock?
raising money for finance operations
true or false
if you own stock you are a shareholder in the company
true
penny
stocks that typically trade for $5.00 or less per share; issued by smaller companies and bring in risky investors
Trading Symbol
an abbreviation used to identify publicly traded shares of a particular stock on a particular stock exchange.
where are stocks exchanged
NYSE (New York Stock Exchange) or the NASDAQ
income
are stocks that offer regular and steady income, usually in the form of dividends; predictable and bring in retired people and issued by utility companies, energy companies
Primary Market
- Is the market where new securities (stocks/bonds) are sold
- This is the market where IPOs are traded
list one reason why people buy stock
•To increase their income (dividends)
•To resell the stock at a later date and make a profit
•To participate in the company’s growth
growth
•stock of a company that’s expected to increase its profits faster than other company’s in the same industry; don't usually pay dividends
Secondary market
Is the market where investors buy existing financial securities that are currently traded among investors
What type of stock is issue most of the time?
common stock
example of blue-chip stock
Apple, Amazon, Coca-Cola