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WorksheetsStock Market Vocabulary Review - Updated
Total questions: 29
Worksheet time: 58mins
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
A company whose shares are traded freely on a stock exchange.
Public Company
Private Company
Stock Market
Sector
A company held under private ownership. _____ companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).
Public Company
Private Company
For-Profit Company
Non-Profit Company
The financial benefit realized when revenue (money) generated from a business activity exceeds the expenses, costs, and taxes involved in maintaining the business. Any _____ earned funnel back to business owners.
Loss
P/E Ratio
Profits
Salary
When an individual or business loses money due to bad investments, economic recession, etc.
Profit
P/E Ratio
Dividend
Loss
A company’s closing price divided by its latest annual earnings per share.
Beta
P/E Ratio
Profit
Loss
It is a company’s profit or earnings divided equally
among all the shares investors own.
P/E Ratio
Earnings per Share (EPS)
Beta
Dividend
A measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. A number less than 1 means less volatility and a number greater than 1 means more volatility.
Volume
Market Capitalization
52 Week Range
Beta
The total number of shares traded so far in a day for any given company.
Volume
Beta
Earnings per Share
52 Week Range
The total current market value of all outstanding
shares of a company.
Market Capitalization
Volume
52 Week Range
Earnings per Share
The highest price and lowest price of the stock so far over a 52 week period.
52 Week Range
Beta
Volume
Mutual Fund
A loan made by an investor to a borrower (typically corporate or governmental). A ____ could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments.
Mutual Fund
Diversification
Default
Bond
The failure to repay a debt including interest or principal on a loan or security. A ______ can occur when a borrower is unable to make timely payments, misses payments, or avoids or stops making payment
Default
Interest Rate
Bond
Dividend
The amount a lender charges for the use of assets (money) expressed as a percentage of the full amount of the loan.
Investment Grade Bonds
Interest Rate
Dividend
Default
Are considered very safe investments because they are issued by corporations and governments who are considered very trustworthy.
Mutual Funds
Stocks
Portfolio
Investment Grade Bonds
a collection of stocks, bonds, and other securities owned by a group of investors and managed by a professional investment advisor. The advisor, often known as a "______ manager” collects money and invests that pool of money in various stocks, bonds and other assets.
Mutual Funds
Bonds
Stocks
Portfolio
An investment risk management strategy that mixes a wide variety of investments (stocks, bonds, mutual funds) within a portfolio.
Dividend
Portfolio
Diversification
Mutual Funds
It represents the value of one share of a mutual fund just like the price quote for a stock.
NAV (Net Asset Value)
YTD (Year-to-Date) Return
Expense Ratio
P/E Ratio
The percentage increase or decrease in value for one share since the beginning of the current calendar year.
NAV (Net Asset Value)
YTD (Year-to-Date) Return
Expense Ratio
P/E Ratio
How much it costs to maintain the mutual fund in proportion to the value of the mutual fund.
Mutual Fund
Earnings per Share
Expense Ratio
P/E Ratio
