Chapter 11 Section 3 The Stock Market Flashcards | Quizlet

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Units of ownership in a corporation represented by shares. The average is computed by adding the prices of the 30 stocks and dividing by an adjusted denominator.

The DJI are maintained and reviewed by editors of The Wall Street Journal. For the sake of continuity, composition changes are rare, and generally occur only after corporate acquisitions or other dramatic shifts in a component's core business. An index that is made up of stocks of major companies. Its performance is thought to be representative of the US stock market as a whole.

Payment is in additional shares of stock. OTC Market Over the counter trading.

Chapter 11 - Financial Markets Flashcards

New York Stock Exchange NYSE. American Stock Exchange AMEX. Second largest US in terms of companies listed - NYC - moved indoors in World's first and largest electronic stock market - Security and Exchange Commission.

Government agency established by Congress in to police and regulate the securities industry. Stock of a corporation that has a history of faster than average gains in earnings over the last five years. They reinvest their earnings in its business.

The legal right to buy or sell a specific number of shares at a set price within a limited time period. A division of shares of a company into a larger number of shares. A 2 for 1 split allows a shareholder to double the number of shares but worth one half of their previous value. It pays dividends at regular times during the year. Buy something at low price, sell it at high price. A single unit of ownership in a corporation. A place where stocks are traded.

A person who is a member of a stock exchange and can trade on the exchange. Capital loss can result when stock is sold for a lower price than was paid for it.

Chapter 11 Section 3 Vocab Flashcards | Quizlet

Another name for stocks, claims of ownership in the corporation. A business that specialize in trading stocks. Stockbrokers work for them. The option to buy shares of stock at a specified time in the future.

The option to sell shares of stock at a specified time in the future. These are contacts to buy or sell commodities at a specific date in the future at a price specified today. The practice of making high-risk investments with borrowed money in hopes of getting a big return.