Stock Market Flashcard

Front

What is the stock market?

Back

A marketplace where shares of publicly held companies are bought and sold.

Front

What is a stock?

Back

A share in the ownership of a company, representing a claim on part of the company’s assets and earnings.

Front

What does it mean to own shares of a company?

Back

Owning shares means you have a claim on a portion of the company's assets and earnings.

Front

What is a dividend?

Back

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Front

What is the difference between common stock and preferred stock?

Back

Common stock typically gives shareholders voting rights, while preferred stock usually does not but has a higher claim on assets and earnings.

Front

What is a stock exchange?

Back

A platform where stock buyers and sellers meet to trade shares.

Front

What is market capitalization?

Back

The total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.

Front

What is a bull market?

Back

A market condition where prices are rising or are expected to rise.

Front

What is a bear market?

Back

A market condition where prices are falling or are expected to fall.

Front

What is the significance of the closing price?

Back

The last price at which a stock is traded during a regular trading session, indicating the stock's value at the end of the day.