Unit 1: Finance

Bull/Bear Market

bull-when stocks are on the rise, bear when stocks are on the low

Security

A financial asset, such as a stock or a bond, that can be bought and sold in a financial market

Quantative Analysis

Evaluation of data that can be measured and described numerically to determine reading level

Qualitative Analysis

Based on research that uses open-ended interviewing to explore and understand attitudes, opinions, feelings, and behavior.

Bond

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date

Insider Trading

illegal practice of using special knowledge about a firm for profit or gain

NASDAQ

A nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically.

Diversification

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk

Dividend

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

Stock

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company

Stock Portfolio

A collection of investments all owned by the same individual or organization; often include stocks, bonds, and mutual funds, etc

Mutual Fund

A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor

Dow Jones Industrial Average

An index that tracks the stocks of a set group of 30 large, well-established, financially sound companies that are leaders in their industries

Securities Markets

the marketplace in which stocks, bonds, and other financial instruments are traded

S&P 500

An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market

Stock Exchange

A market where shares in corporations are bought and sold through an organized system

Traditional IRA

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year

Risk

Degree of uncertainty on how likely the investor is to make money on an investment

Market Index

statistical indicator designed to measure the performance of a large group of stocks or track the price changes of a stock market

Securities and Exchange Commission (SEC)

monitors the stock market and enforces laws regulating the sale of stocks and bonds