Stock Market

What are stocks?

Shares of ownership in a corporation

What are Payouts in stocks?

payments made by a corporation to its shareholders, typically as a distribution of profits.

What are Dividends in relation to Payouts?

Portion of profits paid to stockholders

What are Capital Gains in relation to Payouts?

Selling a stock for more than the purchase price

How does Time affect investment returns?

The length of investment increases the potential return

How does Risk affect investment returns?

Not all borrowers are guaranteed to pay you back

How does Liquidity affect investment returns?

Not all investments can be repaid immediately

How does Inflation affect investment returns?

In times of heavy inflation your return may diminish

What is Income Stock?

Stock that pays dividends at regular times

What is Growth Stock?

Pays few or no dividends, instead reinvesting it in the business

What is Common Stock?

Voting owners of the company

What is Preferred Stock?

Nonvoting owners who get dividend priority

What is Stock Splits?

The division of a stock into more then 1 share that is then used to make stock more attractive to buyers

What are Stock Exchanges?

Markets for buying and selling stocks, ex The New York Stock Exchange (NYSE), which is the world’s largest stock exchange. Nasdaq, which is the 2nd largest securities market, mstly tech stocks, strictly digital.

What is Bull Market

When the stock market rises steadily

What is Bear Market

When the stock market falls steadily

What is The S&P 500?

racks the price changes of 500 different stocks

What is The Dow Jones Industrial Average?

Index that shows how certain stocks have traded