Stock MarketStock Market

The Stock Market

Investing in Stocks amp Bonds

1048576 Stocks - shares of ownership

1048576 Stocks amp bonds are also known as SECURITIES

Two Types of Stock1048576 Common Stock1048576 All profit-making corporations must offer1048576 Holders participate directly or indirectly in the management of the company1048576 Receive DIVIDENDS (return on their investments)1048576 Preferred Stock1048576 Gives holders certain privileges1048576 Paid dividends first1048576 Generally no voice in the company

Stock Terms

1048576 Blue Chip Stocks

1048576 Refers to the stocks of the largest most consistently profitable corporations

1048576 Income stocks

1048576 Stocks that pay dividends regularly

1048576 Growth Stocks

1048576 Pay little or no dividend while reinvesting their profit

The Value of Stock1048576 Capital Gains1048576 The profit from selling stock at a higher price than they paid for it ldquoTiming it rightrdquo1048576 Buy low sell high1048576 Capital Losses1048576 The lost money from selling stock at a lower price than you paid for it1048576 Dividends1048576 Portion of the companyrsquos profit paid out to its shareholders

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

The Stock Market

Investing in Stocks amp Bonds

1048576 Stocks - shares of ownership

1048576 Stocks amp bonds are also known as SECURITIES

Two Types of Stock1048576 Common Stock1048576 All profit-making corporations must offer1048576 Holders participate directly or indirectly in the management of the company1048576 Receive DIVIDENDS (return on their investments)1048576 Preferred Stock1048576 Gives holders certain privileges1048576 Paid dividends first1048576 Generally no voice in the company

Stock Terms

1048576 Blue Chip Stocks

1048576 Refers to the stocks of the largest most consistently profitable corporations

1048576 Income stocks

1048576 Stocks that pay dividends regularly

1048576 Growth Stocks

1048576 Pay little or no dividend while reinvesting their profit

The Value of Stock1048576 Capital Gains1048576 The profit from selling stock at a higher price than they paid for it ldquoTiming it rightrdquo1048576 Buy low sell high1048576 Capital Losses1048576 The lost money from selling stock at a lower price than you paid for it1048576 Dividends1048576 Portion of the companyrsquos profit paid out to its shareholders

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Two Types of Stock1048576 Common Stock1048576 All profit-making corporations must offer1048576 Holders participate directly or indirectly in the management of the company1048576 Receive DIVIDENDS (return on their investments)1048576 Preferred Stock1048576 Gives holders certain privileges1048576 Paid dividends first1048576 Generally no voice in the company

Stock Terms

1048576 Blue Chip Stocks

1048576 Refers to the stocks of the largest most consistently profitable corporations

1048576 Income stocks

1048576 Stocks that pay dividends regularly

1048576 Growth Stocks

1048576 Pay little or no dividend while reinvesting their profit

The Value of Stock1048576 Capital Gains1048576 The profit from selling stock at a higher price than they paid for it ldquoTiming it rightrdquo1048576 Buy low sell high1048576 Capital Losses1048576 The lost money from selling stock at a lower price than you paid for it1048576 Dividends1048576 Portion of the companyrsquos profit paid out to its shareholders

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Stock Terms

1048576 Blue Chip Stocks

1048576 Refers to the stocks of the largest most consistently profitable corporations

1048576 Income stocks

1048576 Stocks that pay dividends regularly

1048576 Growth Stocks

1048576 Pay little or no dividend while reinvesting their profit

The Value of Stock1048576 Capital Gains1048576 The profit from selling stock at a higher price than they paid for it ldquoTiming it rightrdquo1048576 Buy low sell high1048576 Capital Losses1048576 The lost money from selling stock at a lower price than you paid for it1048576 Dividends1048576 Portion of the companyrsquos profit paid out to its shareholders

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

The Value of Stock1048576 Capital Gains1048576 The profit from selling stock at a higher price than they paid for it ldquoTiming it rightrdquo1048576 Buy low sell high1048576 Capital Losses1048576 The lost money from selling stock at a lower price than you paid for it1048576 Dividends1048576 Portion of the companyrsquos profit paid out to its shareholders

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Those involved in stock transactions

1048576 Stockbroker

1048576 A dealer who specializes in stock transactions

1048576 Stockholder (Shareholder)

1048576 One who owns stock

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Investments

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Mutual Funds

1048576 A professionally-managed form of collective investments that pools money from

many investors and invests it in stocks bonds and other securities

1048576 Bonds

1048576 Written promises to pay back by the issuer of the bond to the lender plus interest

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Stock Exchanges

1048576 Stock exchanges are trading markets where stocks amp bonds are bought and sold

1048576 NYSE

1048576 AMEX

1048576 NASDAQ

TSX

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Securities Markets1048576 Deal primarily with stocks and bonds1048576 Purpose is for businesses to acquire investment capitalEx NYSENASDAQNot all markets are the same Different rules for buying and selling1048576 NASDAQ1048576 Computer based deals with technology and new companies Growth stocks1048576 NYSE1048576 Floor-based brokers represent investors Deal with blue chip companies Income stocks

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Regulation of Financial Markets

1048576 Assurance that those who conduct business with the public do so in a professional and ethical manner in

compliance with industry rules

1048576 Ex Securities amp Exchange Commission (SEC)

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Factors that affect stock prices

1048576 Actions of investors

1048576 Business conditions

1048576 Government actions

1048576 Economic indicators

1048576 International events and conditions

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Additional Terms1048576 Initial Public Offering (IPO) - To take a company public to make it possible for investors to buy the stock1048576 Stock Split - More shares created at lower price per share stockholders profit if price goes up1048576 Reverse Split - Exchange more stocks for fewer stocks and the price increases accordingly

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses

Bulls Bears and the Pigs1048576 The Bulls - A bull market is a stock market with rising prices over an extended period of time1048576 The Bears - A bear market is a stock market with falling prices over an extended period of time1048576 The Pigs - A pig is a greedy animal Stock buyers who try to make every last cent of gain on an investmentmay end up with losses