Public vs. Private
True or False: Private companies sell shares on a public stock exchange.
False
Definition of a stock.
A way to divide and allocate ownership of a company.
NYSE stands for
New York Stock Exchange
GHA, TTO, FBR, BBP, and RAG are examples of
Ticker Symbols
The price of a stock goes up.
Capital Gains
Two types of private companies.
- Sole Proprietorship
- Partnership
A reason to own stock.
- Make money
- Obtain portion of future cash flows
This is the largest electronic screen-based market.
NASDAQ
How to calculate the TOTAL COST of purchasing shares in a company.
Share price x number of shares purchased.
A company returns a portion of earnings to its shareholders.
Dividends
The definition of a publicly owned company?
A corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange
True or False: Owning stock in a company makes you partial owner of the company.
True
AMEX stands for
American Stock Exchange
If you do not hold shares on this date, you will not be eligible for dividend distribution.
Dividend Record Date
Owning several stocks across multiple sectors.
Diversify
One disadvantage of a private company.
- Limited ability to raise capital
- Unlimited personal liability
Name one of two ways you can make money with stock.
- Capital gains
- Dividends
A stock exchange that has become the third-largest in the United States by volume.
BATS
The day on which the stock begins trading without the subsequent dividend value.
Ex-Date (Ex-dividend date)
A trading provider that allows clients to open and close positions using a digital platform.
Online Broker
One advantage and one disadvantage of a public company.
- Ability to raise capital; Limited risk and liability
- Stockholders share the profits; Management loses freedom to board of directors and shareholders
Name 3 ways to value a stock.
–Discounted cash flow (DCF)
–Revenue, earnings, cash flow,
–Income and balance sheet statements
–Ratios
–Dividends
–Charts
Name two regional stock exchanges.
CBOE, CBOT, CME, CHX, ISE, MS4X, NSX PHLX
Name 2 catalysts that affect market prices.
–News
–Earnings reports / guidance
–Analysts upgrades / downgrades
–Changes in debt
–Mergers and acquisitions
An stock market index that measures the stock performance of 30 large, publicly-owned companies trading on the NYSE and the NASDAQ.
Dow Jones