capital
The amount of money with which a business is started.
sole proprietorship
A business owned by a single owner.
profit
The difference between revenue and cost for a business.
personally liable
The individual can be held responsible for any outstanding payments if a business goes under.
partnership
Two or more people who own a company together.
corporation
A company owned by one or more people who have limited liability.
shareholders
All the individuals who own at least one share in a company.
public corporation
A corporation who is owned by multiple individuals who own shares traded on the stock market.
limited liability
Persons are not held personally responsible if a company goes under.
stock market
Place where stocks are bought and sold through brokers.
trades
When one person buys and another sells shares of stock.
last
The last price per share at which the stock was traded.
close
The price per share of a stock at the close of the market.
high
The highest price per share of a stock during one day of trading.
low
The lowest price per share of a stock during one day of trading.
volume
The number of shares traded over the course of one day.
52-week high
The highest price a share of stock has traded for during the last 52 weeks.
52-week low
The lowest price a share of stock has traded for during the last 52 weeks.
net change
The change in a stock's closing price from one day to the next.
after-hours trading
Trading that happens while the market is closed.
spreadsheet
A way to organize data and make formulas to relate various data to other data.
cell
One "space" in which one piece of information can be put in a spreadsheet. Named using letters and numbers.
stock chart
A chart depicting various aspects of a stock's value over a certain period of time.
stock bar chart
A special type of stock chart that displays volume, and daily open, low, high, and closing price.
candlestick chart
A stock chart that displays daily open, low, high, and closing prices using a box with two "wicks" - one on the top and one on the bottom of the box.
simple moving average (SMA)
The average of the last ____ days of trading.
ticker
A shorthand message showing information about a recent trade (company, # of shares, price per share, up or down from the previous day's closing price).
trading volume
The amount of stocks being traded in a transaction.
trading price
The price at which a share of stock is being traded.
directional arrow
Depicts whether a trade is above or below the previous day's closing price.
total value of a trade
The amount of money that the complete trade is worth. Usually one would multiply the trading price and the trading volume.
uptick
The trading price is above the previous day's closing price.
downtick
The trading price is below the previous day's closing price.
portfolio
The collection of all of one person's stocks.
round lot
A trade involving a multiple of 100 shares.
odd lot
A trade involving something other than a multiple of 100 shares.
trade
When one person sells and another buys stocks.
gross capital gain
When the total value of a sale of stock is higher than the total value at which the stock was bought.
gross capital loss
When the total value of a sale of stock is lower than the total value at which the stock was bought.
stockbroker
A person licensed to trade stocks on the market.
broker fee
The money paid to a broker for assisting in the trade of stocks.
commission
A fee paid to a broker that is based on a percentage of the value of the trade.
discount broker
A broker who trades stock, but does not provide investment advice.
limit order
A trade placed with a specific per share price limit. The stock is not traded unless it reaches this limit. The limit can be set so that the price is not lower or not higher than a specific amount.
net proceeds
Total money received minus the initial cost and brokers fees. Sometimes it is a loss and sometimes a gain.
stock split
When the total number of stocks is increased by a specific ratio.
outstanding shares
The total number of shares owned by the public.
market cap
The total value of all outstanding shares of stock for a particular company.
traditional stock split
When the number of shares increases and the price per share decreases so that the market cap remains the same.
reverse stock split
When the number of shares decreases, but the price per share increases so that the market cap remains the same.
penny stock
Stock valued at $5 or less.
fractional part of a share
When there is a portion (fraction) of a share owned by an individual after a split.
dividend
Money from a company's profit that is shared to the stock holders. Calculated per stock.
dividend income
Income a shareholder receives from dividends.
income stock
Stock that produces dividends paid to shareholders.
yield
The percentage represented by the dividend income compared to the stock's closing price.
growth stock
Stock which gains value over time based on trading on the market.
corporate bond
A loan given to a corporation that is paid back in interest to the bondholder.
face value
How much a bond is worth at maturity.
matures
When a bond finishes the time period for which it was designated.