Stock Market Vocabulary

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STOCK MARKET VOCABULARY : 

STOCK MARKET VOCABULARY BEAR MARKET – falling market BULL MARKET – rising market AMEX – American Stock Exchange SUPPLY/DEMAND – causes the market to go up and down BLUE CHIP STOCK – large well established, long standing stocks P/E RATIO – price divided by earnings (15-25)

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NYSE – Largest exchange, the big board NASDAQ – market in cyberspace, 2nd biggest ANNUAL REPORT – book of company news and financial reports 3600 - # of companies listed on the NYSE PREFERRED STOCK – more expensive stock, no voting rights COMMON STOCK – voting rights, less expensive SUPER DOT – computer system that runs the exchange

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INSIDER TRADING – capitalizing on info before it hits the public STOCK SPLIT – double the shares, half the price TRADING – buying and selling in the short term LIMIT ORDER – you state the amount of the stock BROKER – person that buys and sells securities FULL SERVICE BROKER – offers advise, higher commission AT THE MARKET – purchase stock at whatever the current price is on the floor

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SHARES – a unit of ownership in a company SPECIALIST – brings the buyer and seller together on the floor of the exchange INVESTING – buying stocks for the long term DISCOUNT BROKER – no advise, lower commission GTC – good til cancelled PROXY – paper that allows you to vote for the BOD

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BLOCK TRADING – 10,000 shares or more DOW JONES INDUSTRIAL AVERAGE – 30 stocks averaged together daily to give you an idea of how the market is performing that day. SEC – Securities and Exchange Commission, the watchdog of the exchange