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Investing
Term | Definition |
---|---|
The oldest stock market indicator | Dow Jones |
Relationship between the market price of a stock and the company's overall earnings | P/E Ratio |
Earnings distributed to the shareholders | Dividends |
A measure of a stocks volatility compared to the overall market. | Beta |
The most accurate stock market indicator | Standard and Poor |
Selling a stock for more than you paid | Capital Gain |
The most volatile stock market indicator | NASDAQ |
Licensed to buy and sell stocks on an exchange | Broker |
A group of similar stocks and bonds | Index |
A form of lending to a company | Bond |
A share of ownership in a company | Stock |
Company combines funds of different investors to invest in a diversified portfolio | Mutual Fund |
The uncertainty about the outcome of an investment. | Investment Risk |
A very high risk stock from a company with potential for substantial earnings in the future. | Speculative Stock |
Net worth of a company. | Book Value |
An individual who has a variety of investments tools to decrease risk. | Portfolio Diversification |
The market is doing poorly and investors are not confident in the economy. Investors are not purchasing stocks and are selling what is already owned. | Bear Market |