Important Terms for the Stock Market

Portfolio: A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed- fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals.

Sectors An area of the economy in which businesses share the same or a related product or service. Economies are comprised of four sectors. The primary sector involves the extraction and harvesting of natural products from the earth (e.g., agriculture, mining and forestry). The secondary sector consists of processing, manufacturing and construction. The tertiary sector provides services, such as retail sales, entertainment and financial services. The quaternary sector is made up of intellectual pursuits, like education.financial

Ups and Downs up down level holding up downturn broke even rebounded downside flat outperform slid stabilized rally off changed surge losses volatile fell dipped fluctuated buoyed plummeted gains dropped advanced rose jumped

Revenues vs. Profits Revenue The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Profit A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business. taxes Profit= TOTAL REVENUE MINUS TOTAL EXPENSES

Indicators Brainstorm—what are some indicators as to how the economy is doing?

Kiplinger Economic Indicators GDP 1.5% in '14; 3% or better in second half of year GDP Unemployment Bouncing around; about 6.3% by end ’14 Unemployment Interest rates Short-term rates to stay low through '14 Interest rates Inflation Ticking up slowly to 2.4% in '14 Inflation Business spending Spending up 4.5%-5% in '14 as U.S. growth strengthens Business spending Energy Oil trading from $103 to $108/bbl. through Aug. Energy Housing sales Existing homes down 1.5% in '14; new ones up 8% Housing sales Retail sales About 4% growth in '14 Retail sales Trade deficit Unchanged from '13; U.S. gr owth pulling in more imports Trade deficit

Large cap Small cap Mid cap Stocks, Bonds, Mutual Funds, Blue Chip Bull vs. bear market volatile, downturn, plunge, plummet, sluggish, rally etc. P/E ratio, EPS, moving average DIJA, NYSE, ROI, SEC, IPO Debt/equity ratio Dividends Balance sheet Assets vs. liabilities Balance sheet: Inventory, overhead, depreciate, receivables, payables