PF6 Vocab 4/20/2017

NASDAQ

(National Association of Securities Dealers Automated Quotation System)
NASDAQ was created to enable investors to trade securities on a
computerized, speedy and transparent system
NASDAQ exchange includes the worlds foremost technology and biotech giants

NYSE

(New York Stock Exchange)
NYSE is a stock exchange based in New York that is considered the
largest equities-based exchange in the world.
Formerly run as a private organization, the NYSE became a publicly
entity in 2008 following the acquisition of electr

Market Capitalization

Market capitalization refers the total dollar market value of a company's outstanding shares (in other words, the value of a company that is traded on the stock market).
Commonly referred to as "market cap," it is calculated by multiplying a company's sha

Equity Market

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slic

Financial Instrument

Financial instruments are assets that can be traded. They can also be seen as packages of capital that may be traded. Most types of financial instruments provide an efficient flow and transfer of capital all throughout the world's investors. These assets

Dow Jones

The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
Often referred to as "the Dow," the DJIA is one of

bid

A bid is an offer made by an investor, a trader or a dealer to buy a security, commodity or currency. It stipulates both the price the potential buyer is willing to pay and the quantity to be purchased at that price. Bid also refers to the price at which

Beneficial Owners

A beneficial owner is a person who enjoys the benefits of ownership even though title to some form of property is in another name. It also means any individual or group of individuals who, either directly or indirectly, has the power to vote or influence

Market Makers

A market maker is a broker-dealer firm that assumes the risk of holding a certain number of shares of a particular security in order to facilitate the trading of that security. Each market maker competes for customer order flow by displaying buy and sell

Broker-dealer

A broker-dealer is a person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction. The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages

Round Lot

A round lot is a group of 100 shares of a stock, or any group of shares that can be evenly divided by 100, such as 500, 2,600 or 14,300. A round lot of 100 has historically been the smallest order that can be placed through an exchange. However, round-lot

Net Loss

Net loss, also referred to as a net operating loss (NOL), is the result that occurs when expenses exceed the income or total revenue produced for a given period of time.
Businesses that have a net loss don't necessarily go bankrupt because they may opt to

Shareholder

A shareholder is any person, company or other institution that owns at least one share of a company's stock. Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation. If the co

Initial Public Offering

(A company's flotation on the stock exchange)
An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also

Market Efficiency

Market efficiency refers to the degree to which stock prices and other securities prices reflect all available, relevant information. Market efficiency was developed in 1970 by economist Eugene Fama, whose theory of efficient market hypothesis (EMH) state