Unit:3-Vocab. Flashcards-Business Types/Organizations/Stocks

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Asset

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any physical property or financial claim that is owned

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Liability

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the legal obligation to pay any debts of the business; an amount owed

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Equity

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wealth after debts and other obligations have been subtracted

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Stock

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ownership in a corporation

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IPO

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the initial sale of corporate stock to the public

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Ticker or Stock Symbol

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An abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. It may consist of letters, numbers or a combination of both.

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Dividend

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that portion of after-tax corporate profit paid out to shareholders

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Stock Index

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a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

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Stock Exchange

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a market in which the public buys and sells shares of stock

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Bonds

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a contract promising to repay borrowed money on a designated date and pay interest along the way