Stock Market Vocabulary Review - Updated

Front

A security that represents the ownership of a fraction of a corporation. Units of _____ are called "shares."

Back

stock

Front

The _____________ refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.

Back

Stock Market

Front

A group of big companies that stock brokers use to gauge how the stock market is doing as a whole. When the _____ prices move up or down, it is a good indication of how the overall market is doing.

Back

Index

Front

A person who owns shares of stock in a company.

Back

Shareholder

Front

The chance that an actual return on an investment will be different than expected, including losing some or all of the invested amount.

Back

Risk

Front

A specific group of companies that produce a closely related set of raw materials, goods, or services. EX. automobile industry

Back

Industry

Front

A larger segment of the economy made up of companies producing goods and services that share a similar business type. Ex: the transportation _____ is made up of the automobile industry, railroad industry, airplane industry, etc.

Back

Sector

Front

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs)

Back

Portfolio

Front

the act of allocating resources, usually money, with the expectation of generating an income or profit, usually by buying shares of stocks, bonds, and mutual funds.

Back

Invest

Front

The distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Dividends may be paid out as cash or in the form of additional stock.

Back

Dividend