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Ch. 21 Key Terms

Brooke Young Inglés 21 fichas

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  1. 1StocksOwnership shares in the company sold to buyers, who receive stock certificates,
  2. 2StockholderOne who owns stock in a company
  3. 3Stock certificateEvidence of ownership in a corporation
  4. 4Common stockUnits of ownership called shares
  5. 5Preferred stockType of stock that has a preference regarding a corporation’s profits and assets
  6. 6DividendsDistribution of company’s profit in cash or stock to owners of stock
  7. 7Cumulative preferred stockHolders of preferred stock must receive current year’s dividends and any dividends in arrears before any dividends are paid out to the holders of common stock
  8. 8Dividends in arrearsDividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders,
  9. 9StockbrokersPeople who with their representatives do the trading on the floor of the stock exchange
  10. 10Stock YieldDividend per share divided by the closing price per share
  11. 11Earnings per share (EPS)Annual earnings divided by total number of shares outstanding
  12. 12Round lotsMultiple of 100 shares
  13. 13Odd lotsLess than 100 shares
  14. 14Price-earnings (PE) ratioClosing price per share of stock divided by earnings per share
  15. 15BondsBond selling for more than the face value
  16. 16DiscountAmount bond sells below $1,000
  17. 17PremiumPeriodic payments that one makes for various kinds of insurance protection
  18. 18Bond yieldPeriodic payments that one makes for various kinds of insurance protection
  19. 19Mutual FundsInvestors buy shares in the fund’s portfolio (group of stocks and/or bonds)
  20. 20Net asset value (NAV)The dollar value of one mutual fund share; calculated by subtracting current liabilities from current market value of fund’s investments and dividing this by number of shares outstanding
  21. 21—

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Ch. 21 - Stocks, Bonds and Mutual Funds
Creado por
Brooke Young
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