Studied by 5 people
fundamental
-price stocks based on future earnings
-industry new products, state of economy
-buy blue chip companies
-hold for a long time (long term)
blue chip companies
companies that are financially sound and hold a good reputation in the market of having consistent growth
fundamental stock market theory
the fair market value is higher than the market price, the stock is deemed undervalued, and a buy recommendation is given
technical
-look at graphs numbers and trends(patterns)
-buy low and sell high
-volume(how many shares bought/sold per day)
-day trader(short term)
technical stock market theory
believeĀ past trading activity and price changes of a security can be valuable indicators of the security's future price movements
efficient market
-the stock market is random
-all investors do their hw before buying stock
-you canāt beat Dow Jones
Dow Jones
index average of the stock market
income stock
pays higher than average dividends compared to other stocks
growth
company who is doing way better than the typical stock on the stock market
cyclical
when economy is doing good, stock is good; when economy is doing bad, stock is bad
defensive
established comapany, steady dividends, remains stable during declines in the economy
penny stock
anything that sells for less than one dollar per share
capitalization
total amount of stocks a company has released
large cap
stock issued by company that issues a large amount of stock and has a large amount of capitalization
divdends
money the comes into company and then goes to investor
small cap stock
issued by company with capitalization of 500 million or less.
Note 
Flashcard (20)