Stock Market and Investment Terms

Dividend Yield

• The total profit a company makes divided by the number of shares outstanding; displayed as a percentage.

• The amount of money a company pays shareholders for owning a share of its stock divided by its current stock price; displayed as a percentage.

• The increase in stock price over a year divided by the initial stock price; displayed as a percentage.

• The total revenue of a company divided by its total expenses; displayed as a percentage.

Nasdaq

• A type of cryptocurrency exchange.

• An American stock exchange marketplace for buying and selling securities on a computerized system.

• A global bond market.

• A platform for trading commodities.

New York Stock Exchange (NYSE)

• A platform for buying and selling stocks and other investments.

• A government agency that regulates financial markets.

• A type of investment fund that pools money from multiple investors.

• A stock market index that tracks the performance of large companies.

52-Week high

• The lowest price that a particular stock has reached in the most recent 52-week period.

• The average price of a stock over the last 52 weeks.

• The highest price that a particular stock has reached in the most recent 52-week period.

• The price at which a stock is currently trading.

Dow Jones Industrial Average (Dow Jones or Dow)

• A price-weighted measurement stock market index of 30 prominent companies listed on stock exchanges in the U.S.A.

• A market index that tracks the performance of 50 technology companies in the U.S.A.

• A bond index that measures the performance of government bonds in the U.S.A.

• A stock market index that includes companies from various sectors in Europe.

P/E ratio

• Price-to-earnings (P/E), indicates the ratio between the price of the stock and the company’s earnings.

• Price-to-earnings (P/E), indicates the ratio between the company's debt and its assets.

• Price-to-earnings (P/E), indicates the ratio of the company's market cap to its revenue.

• Price-to-earnings (P/E), indicates the ratio of the company's dividends to its earnings.

Timeline

• A specified length of time.

• A method of tracking events in history.

• A graphical representation of data over time.

• A schedule of activities for a project.

Stock name

• The company name (usually abbreviated), must be used in all stock communications.

• A unique identifier for each stock traded on the exchange.

• The price at which a stock is currently trading.

• The total number of shares outstanding for a company.

Diversification

• A strategy that involves investing in a single type of asset to maximize returns.

• A common investment strategy that entails buying different types of investments to reduce the risk of market volatility.

• A method of trading that focuses on short-term gains through frequent buying and selling.

• An approach that encourages investing only in high-risk assets for potentially higher rewards.

Standard & Poor’s 500 (S&P)

• A stock market index tracking the performance of 500 large companies listed on stock exchanges in the U.S.A.

• A measure of the average price of 500 small companies in the U.S.A.

• A bond index that tracks the performance of government bonds in the U.S.A.

• A real estate index measuring the value of residential properties in the U.S.A.