Unit 1 Economics: The Stock Market

The act of redirecting resources from being consumed today so that they may create benefits in the future

• bartering

• investing

• trading

• selling

The use of assets to create income or profit

• investing

• trading

• saving

• loaning

A specific legal form of business that generally has a board of directors and shareholders

• limited liability corporation

• sole propritorship

• corporation

• company

Shares of a company issued to begin, or expand and grow a business

• bonds

• mutual funds

• certificates of deposit

• stocks

Money usually paid quarterly to stockholders based on a company's profits

• income

• capital gains

• capital loss

• growth shares

A type of stock that pays dividends and pays shareholders regular income.

• income stock

• growth stock

• preferred stock

• common stock

Money usually paid to stockholders based on a company's profits

• profit

• stock split

• dividends

• rewards

A stock that pays few or no dividends. The company reinvests the earnings into the business and it grows over time.

• income stock

• time stock

• preferred stock

• growth stock

Investors of this type of stock are usually voting owners of the company. They usually receive one vote for each share of stock owned.

• common stock

• growth stock

• income stock

• preferred stock

Investors of this kind of stock are usually non-voting owners of the company, however, they do receive dividends.

• common stock

• growth stock

• income stock

• preferred stock