1. Stock Market general term to describe all stock transactions

2. Stock share of ownership in the assets and earnings of a company

3. Bond type of debt that a company issues to investors for a specified amount of time

4. How to make a profit Investors that purchase stock earn money from increases in the stock’s value and/or dividends.

5. Diversified Portfolio Money is invested in a variety of investment tools to decrease risk

6. Common Stock Most popular type of stock Owners get voting rights

7. Dividends distribution of earnings a corporation pays to stockholders

8. Preferred Stock Pays a fixed dividend have precedence over common stock Less risk

9. 7 Stock Classifications Growth have a consistent record of relatively rapid growth and earnings in all economic conditions Income pay higher than average dividends because the company chooses to retain only a small portion of its profits

10. 7 Stock Classifications Value from companies which have a low market price considering their historical earning records and value of current assets Countercyclical from companies which give consistent returns even when the economy is suffering because their products are always in demand

11. 7 Stock Classifications Cyclical are greatly influenced by changes in the economic business cycle mirrors the economy Speculative from companies with potential for substantial earnings in the future high risk/high reward

12. 7 Stock Classifications Blue Chip from nationally recognized companies which dominate the industry often having annual revenue of $1 billion or more

13. Types of Markets Bear Market Market is doing well Up 20% Lasts on avg 29 months Bull Market Market is doing poor Down 20% Lasts on avg 9 months

14. How Stocks Are Traded 1.Receiving an order 2.Signal to floor broker 3.Trade occurs 4.To the ticker system 5.On the board