Math Vocab

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Stock Broker

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14 Terms

1

Stock Broker

An institution where stocks are bought and sold.

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2

Broker Fee

A flat fee or commission that a stockbroker charges for trade stocks

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3

Commission

A percentage of the value of a stock trade

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4

Discount Broker

A broker who trades stocks, but does not give investment advice

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5

At the Market

Instructions to the broker to get the best possible price

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6

Limit Order

Instructions to the broker that name a specific price for a share of stock

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7

Net Proceeds

The amount of money made on a stock trade after the brokerage fees are paid.

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8

stock split

A corporation changes the number of outstanding shares while at the same time adjusts the price per share so that the market cap remains unchanged.

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9

Outstanding Shares

The total number of all shares issued to investors by a corporation

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10

Market Capitalization or Market Cap

The total value of all of a company’s outstanding shares

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11

Traditional Stock Split

A split where the value of a share and the number of shares are changed in such a proportional way that the value is decreased as the numbers of shares, while the market cap remains the same

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12

Reverse stock Split

When the number of outstanding shares is reduced and the market price per share is increased; as the price per shares increased, the investor perceives that the stock is worth morel.

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13

Penny Stock

A stock whose value is less than $5 per share

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14

Fractional part of a share

When a split creates a situation where less than one share remains.

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