20 stocks

IPO / GO PUBLIC

The first time a business raises finance publicly

Dividend

The distribution of corporate profits to shareholders

Common stock vs. Preferred stock

Common: risky but has high potential for growth(voting rights)

Preferred: no risks and has fixed dividends (no voting rights)

Capital gains

The profits from selling assets for a higher price than you bought it (you have to pay taxes on capital gain)

Bond

A type of loan where investors lend money to an issuer in exchange for payments with interest.

Bull vs bear market

Bull markets: strong economies where stock prices raise

Bear markets: weak economy where stocks drop

Volume

Total number of shares traded for specific stock over a specific time period

P/E ratio

A financial metric showing how much investors would be willing to pay for the companies earnings