Stock Market Vocabulary
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These flashcards contain key vocabulary terms related to the stock market and their definitions for review and study purposes.
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14 Terms
Stock
A security that represents the ownership of 1 unit of a corporation.
IPO (Initial Public Offering)
When a private corporation sells shares of stock to the public to raise capital.
Ticker Symbol
A short code used to identify a company that issues securities.
Exchange
A market where stocks are bought and sold.
Dividend
A reward paid by a corporation to a shareholder for investing in their company.
Yield
Rate used to determine the dividend amount.
SP500
An index that measures the financial strength of the 500 largest US corporations.
Stock Split
When a corporation breaks up its existing shares into multiple lower-value shares.
NYSE & NASDAQ
The 2 largest US stock exchanges.
DOW
An index that measures the financial strength of the 30 largest US corporations.
Market Cap
Total value of a corporation (value of all shares of stock).
EPS (Earnings Per Share)
Amount of “left over” profit per share.
P/E Ratio
The amount an investor must spend for the company to generate $1 of profit.
Beta
Measures how a stock reacts to market swings (measures risk level).
