NEW
Font size
WorksheetsChapter 17: Investing in Stocks Vocabulary Review
Total questions: 20
Worksheet time: 10mins
Preferred Stock
A type of stock that gives holders priority in receiving dividends and assets in case of liquidation.
A type of stock that has no voting rights and is only for dividends.
A type of stock that can be converted into bonds at any time.
A type of stock that is only available to institutional investors.
Bear Market
A market condition where prices are rising or are expected to rise.
A market condition where prices are falling or are expected to fall.
A market condition characterized by high volatility and uncertainty.
A market condition where prices remain stable and unchanged.
Dollar-cost averaging
An investment strategy where a fixed dollar amount is invested regularly, regardless of share price.
A method of investing all available funds at once to maximize returns.
A strategy that involves timing the market to buy low and sell high.
An approach that focuses on investing in high-risk stocks only.
Stock Split
An action by a company to divide its existing shares into multiple shares to boost liquidity.
A method for a company to increase its stock price by reducing the number of shares available.
A strategy to merge multiple shares into a single share to increase value.
A financial maneuver to distribute dividends to shareholders in the form of additional shares.
Auction Market
A market where prices are fixed and non-negotiable.
A market in which buyers and sellers enter competitive bids and offers simultaneously.
A market that operates only online without physical presence.
A market where goods are sold at a predetermined price.
Growth Stocks
Stocks of companies expected to grow at an above-average rate compared to other companies.
Stocks that pay high dividends regularly.
Stocks of companies that are declining in value.
Stocks that are considered safe investments with low risk.
Blue Chip Stocks
Shares of small, emerging companies with high growth potential.
Shares of large, well-established, and financially sound companies with a history of reliable performance.
Shares that are highly volatile and subject to rapid price changes.
Shares of companies that are primarily focused on technology and innovation.
Par Value
The market value of a bond or stock.
The face value of a bond or stock as stated by the issuer.
The total amount of dividends paid to shareholders.
The price at which a bond or stock is traded in the market.
Dividend Reinvestment
Using dividends received to purchase more shares of the same stock.
Selling dividends for cash immediately.
Investing dividends in a different stock.
Using dividends to pay off debt.
Short Selling
The practice of selling borrowed stocks with the intention of buying them back later at a lower price.
The act of purchasing stocks with the hope that their price will increase.
A strategy to invest in stocks without owning them directly.
The process of holding onto stocks for a long period to gain dividends.
Common Stock
Shares that represent ownership in a corporation and entitle the holder to voting rights.
A type of bond that pays fixed interest over time.
A financial instrument that represents a loan made by an investor to a borrower.
A share that guarantees dividends regardless of company performance.
Income Stocks
Stocks that pay regular and high dividends, providing steady income to investors.
Stocks that are expected to grow in value over time without paying dividends.
Stocks that are primarily focused on capital gains rather than income.
Stocks that are issued by companies with low market capitalization.
Leverage
The use of borrowed capital to increase the potential return of an investment.
A strategy to minimize risk by diversifying assets.
The process of selling an asset for a profit.
A method of investing in stocks without using any capital.
Dividends
Payments made by a corporation to its shareholders, usually as a distribution of profits.
A type of tax imposed on corporate earnings.
A method of increasing stock prices through buybacks.
A financial instrument used for raising capital.
Securities Exchange
A platform for trading cryptocurrencies.
A marketplace where securities, such as stocks and bonds, are bought and sold.
A place where commodities like gold and oil are exchanged.
An online forum for discussing investment strategies.
Proxy
A written authorization for someone to vote on behalf of a shareholder.
A type of investment strategy used in stock trading.
A legal document for transferring property ownership.
A method of communication between shareholders and management.
Direct Investment
Buying stocks directly from a company without using a broker.
Investing in mutual funds through a financial advisor.
Purchasing stocks through an online trading platform.
Buying bonds issued by the government.
Public Corporation
A company whose shares are publicly traded and available to anyone.
A private company owned by a small group of investors.
A non-profit organization that serves the public interest.
A government entity that operates for profit.
Market Value
The historical cost of an asset.
The current price at which an asset or service can be bought or sold.
The estimated future value of an asset.
The value assigned to an asset by an appraiser.
Earning per Share
A company's profit divided by the number of outstanding shares of its common stock.
The total revenue of a company divided by its total assets.
The net income of a company divided by its total liabilities.
The market value of a company's equity divided by the number of shares outstanding.
