Stock Market Vocabulary Review - Updated

A security that represents the ownership of a fraction of a corporation. Units of _____ are called "shares."

• shareholder

• stock

• Index

• stock market

The _____________ refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.

• Index

• Mutual Fund Exchange

• Stock Market

• Industry

A group of big companies that stock brokers use to gauge how the stock market is doing as a whole. When the _____ prices move up or down, it is a good indication of how the overall market is doing.

• Stock Market

• Stock Broker

• Sector

• Index

A person who owns shares of stock in a company.

• Stock Broker

• Financial Advisor

• Shareholder

• Index

The chance that an actual return on an investment will be different than expected, including losing some or all of the invested amount.

• Risk

• Industry

• Diversification

• Dividend

A specific group of companies that produce a closely related set of raw materials, goods, or services. EX. automobile industry

• Sector

• Index

• Mutual Fund

• Industry

A larger segment of the economy made up of companies producing goods and services that share a similar business type. Ex: the transportation _____ is made up of the automobile industry, railroad industry, airplane industry, etc.

• Industry

• Sector

• Portfolio

• Diversification

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs

• Portfolio

• Stock Market

• Diversification

• Investment

the act of allocating resources, usually money, with the expectation of generating an income or profit, usually by buying shares of stocks, bonds, and mutual funds.

• Dividend

• Invest

• Stock

• Shareholder

The distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Dividends may be paid out as cash or in the form of additional stock.

• Portfolio

• Expense Ratio

• Dividend

• Cost