Ch 6.7 Stocks

What is a share?

• A stock that is issued in portions

• An amount of money paid to the shareholders

• Another way for an investor to earn profit

• An investor who sells their share of stocks lower than the purchase price

What is a dividend?

• A stock that is issued in portions

• An amount of money paid to the shareholders

• Another way for an investor to earn profit

• An investor who sells their share of stocks lower than the purchase price

What is a capital gain?

• A stock that is issued in portions

• An amount of money paid to the shareholders

• Another way for an investor to earn profit

• An investor who sells their share of stocks lower than the purchase price

What is a capital loss?

• A stock that is issued in portions

• An amount of money paid to the shareholders

• Another way for an investor to earn profit

• An investor who sells their share of stocks lower than the purchase price

What is a stock split?

• A stock that is issued in portions

• An amount of money paid to the shareholders

• Means that each single share of stock will split into more than one share

• An investor who sells their share of stocks lower than the purchase price

What is a stockbroker?

• A person who is licensed to buy and sell stock in the market

• An amount of money paid to the shareholders

• Means that each single share of stock will split into more than one share

• An investor who sells their share of stocks lower than the purchase price

What is a brokerage firm?

• A person who is licensed to buy and sell stock in the market

• A business that specializes in trading stocks

• Means that each single share of stock will split into more than one share

• An investor who sells their share of stocks lower than the purchase price

What is a stock exchange?

• A person who is licensed to buy and sell stock in the market

• A business that specializes in trading stocks

• A market for buying and selling shares of stocks and bonds

• An investor who sells their share of stocks lower than the purchase price

What are futures?

• A person who is licensed to buy and sell stock in the market

• Contracts to buy and sell commodities at a particular date in the future at a price specified today

• A market for buying and selling shares of stocks and bonds

• An investor who sells their share of stocks lower than the purchase price

What are options?

• A person who is licensed to buy and sell stock in the market

• Contracts to buy and sell commodities at a particular date in the future at a price specified today

• Contracts that give investors the choice to buy or sell stock and other financial assets

• An investor who sells their share of stocks lower than the purchase price