Stock market test review

The 2 major US stock exchanges in the US include: NYSE and the SEC.

These stock are considered highly risky. They are priced low because they have not yet proven themselves in the market.

A stock that tends to remain stable under difficult economic conditions

A dividend is a sum of money from a company's profits paid regularly (typically quarterly) to its shareholders.

The term Blue chips, meaning the most valuable chips, comes fromt he game of poker.

Stock market index that tracks the 500 widely held stocks on NYSE and is used as an indicator of stock market trends.

The oldest, largest and most well known stock exchange in the US. It is often referred to as the "Big Board".

A strategy companies use to lower the price of stock and increase trading

A portfolio strategy designed to reduce risk by investing in a variety of investments

Generally young companies with potential. These companies usually reinvest most of their profits back into the business

Very solid, reliable companies with long histories of consistent growth and stability.

A snapshot of how the market is doing in general

A strategy of reinvesting dividends and letting money grow-earning interest off from interest

The most frequently issued class of stock

A publicly traded compay gives up some control of the company to its shareholders in exchange for cash.

In a two for one stock split, the price of the stock is cut in half and stockholders are given half as many shares.

The owner of this type of stock usually does not have voting rights.

A stock that is purchased primarily for income which is paid out i the form of dividends.

Companies issue common stock before preferred stock.

Stock prices go up or down because the Securities and Exchange Commision raises or lowers the prices.

Purchasing the right stocks and holding onto them over the long term can be very profitable.

A stockholder is an individual, group or company that buys stock in a corporation.

Investing in stocks is NOT as risky as investing in bonds, real estate, gold or cash.

A licensed professional who receives a commission for executing buy and sell orders for investors is a stockbroker.

Strategy enables investors to accumulate shares of stock by purchasing shares on a regular basis with a fixed dollar amt