Investing 101 Personal Finance

Business owned by stockholders who share in its profits but are not personally responsible for its debt

Corporation

PERSON who organizes, manages, and takes on the risks of a business

Entrepreneur

A business organization owned by 2 or MORE persons who agree on a specific division of responsibilities and profits

Partnership

Business whose shares are NOT traded publicly on the stock market

Private Corporation

Corporation in which stock is sold to ANYONE who has the means to buy it

Public Corporation

Business owned and managed by a SINGLE INDIVIDUAL

Sole Proprietorship

Most BASIC form of ownership, including voting rights on major issues, in a company

Common Stock

The PORTION of corporate profits paid out to stockholders

Dividend

The amount of money that REMAINS after subtracting the company's expenses from its revenue.

Earnings

SOMEONE who commits capital in order to gain FINANCIAL returns

Investor

Initial Public Offering, a corporation’s first offer to sell shares to the public

IPO

Special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

Preferred Stock

The CHANCE of LOSS from an event that cannot be entirely CONTROLLED

Risk

A share of ownership in a corporation

Stock

An announcement appearing in financial publications such as the Wall Street Journal announcing a company's Initial Public Offering (IPO).

Tombstone Ad

PERSON who evaluates and classifies risk to accept or reject them on behalf of the insurer

Underwriter

Indicates how much and how quickly the VALUE of an investment, market, or market sector CHANGES

Volatility