Introduction to Stocks and the Stock Market

These flashcards cover key vocabulary and concepts from the lecture about stocks and the stock market.

Stocks

Represent ownership in a corporation.

Common Stocks

Shares that allow shareholders to vote on corporate matters.

Equities

A term from accounting that means ownership.

Limited Liability

A feature of corporation stock ownership where an investor's loss is limited to their investment.

Dividends

Payments made to shareholders from a corporation's earnings.

Capital Gains

Profit from the sale of an asset.

Volatile

Describes the unpredictable nature of stock market returns.

Bull Market

A favorable market condition typically characterized by rising prices.

Bear Market

An unfavorable market condition characterized by falling prices.

Speculation

Investment strategy involving high risk and potential for high reward; often contrasted with steady investment.

Nifty 50

A term for high-performing stocks that were considered makeshift safe investments.

Market Correction

A decline of at least 10% in the price of a stock or market index.

Dividend Yield

The annual dividend payment divided by the stock's current price.