WOW 6 – The Stock Market
Stock Exchange:
• One of the organized stock markets with a
centralized trading floor. Auction-type trading
allows traders to sell stocks to the highest
bidder or buy stocks from the lowest supplier
Stock Market:
• A market in which the people trade stocks they
already own
• NASDAQ: The National Association of Securities
Dealers Automated Quotation system is an
important part of the over-the-counter market.
NASDAQ is an electronic marketplace listing
prices of more than 5,000 stocks
• NYSE: The New York Stock Exchange, which is one
of the organized stock markets in the US
Mutual fund
• : A company that pools the money of many
investors to buy a large selection of securities
that meet the fund's state investment goals
Stockbroker:
• A broker who accepts orders to buy and sell
stock and then transfers those orders to other
people who complete them
Stockholder
• An owner of a share of stock
Stock Split
• The division of a stock into a larger number of
lower-priced shares
Short-term investing
• : The continual buying and selling of stock in
an effort to have one's money grow faster
than the general level of stock prices
Securities
• A broad range of investment instruments,
including stocks, bonds and mutual funds
Penny stock:
• Stocks that sell for less than $5 per share
Bear market:
• A market characterized by falling prices of 15
percent or more; characterized by pessimism
Bull market:
• A rising stock market (in both volume and
prices), which is characterized by optimism
Blue chip stocks:
• Stocks in the biggest, most established, and
consistently profitable companies in the
United States