2240d90653eb3bee1d041bfb934f7080.ppt
- Количество слайдов: 54
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Personal Finance & Economics INVESTING IN THE STOCK MARKET
1 Billy bought ABC corporation stock at $27/share. Later he sold it at $31/share. This is an example of. Capital gain
2 List ways that an investor can make money on stocks. Dividends Capital gain
3 _______ are spaced at intervals around the trading floor of the NYSE. Trading posts
4 The largest securities exchange in the USA. NYSE
5 A name for owners of a corporation. Shareholders or stockholders
6 The over-the-counter market. NASDAQ
7 _______ buy and sell stocks on the exchange. They must be members of the exchange. Floor brokers
8 Prolonged period of rising stock prices and a general feeling of investor optimism. Bull market
9 _______ are the part of the corporations profits paid to stockholders. Dividends
10 Borrowing money from a broker to buy stock. Leverage or buying on margin
11 In order to purchase stock, you must know the ______ of the corporation. Ticker symbol
12 Period of falling stock prices and a general feeling of investor pessimism. Bear market
13 A _____ is a stockholder’s written authorization to transfer his or her voting rights to someone else, usually a company manager. Proxy
14 This is an increase in the value of the stock above the price initially paid for it. Capital gain
15 The _______ is an assigned, arbitrary dollar value that is used to calculate dividends. Par value
16 This type of stock pays a variable dividend and gives the holder voting rights. Common stock
17 A marketplace where brokers who are representing investors meet to buy and sell securities. Stock exchange or security exchange
18 List a long term investing strategy. Dollar-cost averaging Buy and hold Reinvesting dividends Direct investment
19 This is when a shareholder sells stock for less than what they paid for it. Capital loss
20 List an example of a cyclical stock. Explain. Travel agency travel spending can easily be cut during times of recession
21 List a short term investing strategy. Short selling Leverage or buying on margin
22 This type of stock is a bargain for investors, but is dangerous for businesses because it makes them vulnerable to takeovers. Undervalued stock
23 Buying stock directly from a corporation. Direct investment
24 Selling stock borrowed from a broker that must be replaced at a later time. Short selling
25 ____ is the price investors are willing to pay for the stock. Market value
26 List an advantage to owning stock as opposed to investing in a small business. The investor can lose no more than their initial investment.
27 The systematic purchase of an equal dollar amount of the same stock at regular intervals. Dollar-cost averaging
28 ______ have a consistent history of paying high dividends. Income stocks
29 A _____ is an increase in the number of shares outstanding of a company’s stock. Stock split
30 _______ are stocks in corporations that reinvest their profits. Growth stocks
31 Benchmark that investors use to judge the performance of their investments. Stock indices
32 Another term for buying on margin. Leverage
33 This type of stock……. Pays fixed dividends. Carries no voting rights. Less risky Much less potential for major earnings. Preferred stock
34 Using dividends previously earned on the stock to buy more shares. Dividend reinvestment
35 If the stock drops to around ½ of the original purchase price, the investor receives a _______ - the investor must pledge additional cash or securities to serve as collateral for the loan. Margin call
36 The _____, elected by the stockholders to guide the corporation, decides the amount of dividends to be paid each year. Board of directors
37 List the formula for calculating return on investment. Profit/cost
38 A _____ is one that remains stable and pays dividends during an economic decline. Defensive stock
39 This type of stock is selling at a price that is not justified by the corporation’s earnings. Overvalued stock
40 A ______is 100 shares or multiples of 100 shares of a particular stock. Round lot
41 _______ are stocks of large, well-established corporations w/ a solid record of profitability. Blue Chip stocks
42 ____ do well when the economy is stable or growing, but often do poorly during recessions, when the economy slows down. Cyclical stocks
43 List an example of a defensive stock. Explain. Pharmaceutical – people need even in times of recession
44 List an example of a stock index. DJIA S&P 500
45 Samantha bought XYZ Corporation stock at $48/share. Later she sold it for $22/share. This is an example of what? Capital loss
46 List an advantage to direct investment. Avoid broker’s commissions.
47 What do all short-term investment strategies have in common? Risky
#48 ROI Billy Brandon purchased 200 shares of XYZ Corp stock at $32. 50/share & paid a $500 commission. Today’s market price is $41. 75/share. Last year he received dividends of $1. 45/share. 23. 4%
#49 Dividends There are 6, 500 shares of $30 par value preferred stock & 3, 000 shares of common stock. Preferred has a 5% guaranteed rate of return. Dividends of $. 75 per share declared of common stock.
#49 Answer Common Stock Preferred Stock Total Dividends $2, 250 $9, 750 Dividends per Share $. 75 $1. 50
#50 ROI Billy Brandon purchased 250 shares of XYZ Corp stock at $15. 80/share & paid a $283 commission. Today’s market price is $10. 11/share. Last year he received dividends of $. 85/share. -35. 3%
Final Question List and explain 2 longterm investing strategies & 2 short-term investing strategies.