CJS IMAGE DICTIONARY

SHARETRADING

Some essential terms to know when dealing in shares.

MOST important, however, is the proverb:

"Don't put all your eggs in one basket."

RED indicates
the wordstress.


a company whose shares are traded freely on a stock exchange is referred to as ....

????????

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a company whose shares are traded freely on a stock exchange is referred to as ....

a public company

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a market condition where stock prices are continually rising	a market condition where stock prices are continually falling
??????????	??????????

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a market condition where stock prices are continually rising	a market condition where stock prices are continually falling
a bull market	a bear market

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a market order which if it isn’t filled during the day is automatically canceled at the market close

????????

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a market order which if it isn’t filled during the day is automatically canceled at the market close

a day order

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a stock that moves up and down wildly is ....

a ??????????

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a stock that moves up and down wildly is ....

a volatile stock

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describes a situation where a trader tries to profit from a stock’s falling price A ????????? borrows shares from a broker, sells them, and hopes the stock price declines. Then he buys the shares back and return them to the broker.

?????????? or ??????????

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describes a situation where a trader tries to profit from a stock’s falling price A short seller borrows shares from a broker, sells them, and hopes the stock price declines. Then he buys the shares back and return them to the broker.

going short or shorting

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the total value of all a company’s shares For example, if a company has one million shares outstanding and the stock price is $10 per share, then the ????????????????????? is $10 million.

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the total value of all a company’s shares For example, if a company has one million shares outstanding and the stock price is $10 per share, then the market capitalization is $10 million.

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The difference between the highest price at which someone is willing to buy shares and the lowest price someone is willing to sell shares is ....

??????????

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The difference between the highest price at which someone is willing to buy shares and the lowest price someone is willing to sell shares is ....

the bid-ask spread

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A type of stock market order that provides instruction to only execute at a certain price. For example, a trader could place an order to purchase 100 shares of a stock at $10.20. The broker will then attempt to buy 100 shares at a price of $10.20 or less.

??????????

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A type of stock market order that provides instruction to only execute at a certain price. For example, a trader could place an order to purchase 100 shares of a stock at $10.20. The broker will then attempt to buy 100 shares at a price of $10.20 or less.

a limit order

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this is when you purchase stock shares hoping to profit from an increase in the stock price

??????????

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this is when you purchase stock shares hoping to profit from an increase in the stock price

going long

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A company offering to sell shares on the stock market for the first time is referred to as an ....

??????????

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A company offering to sell shares on the stock market for the first time is referred to as an ....

IPO (Initial Public Offer)

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large, well-established and stable public companies which are often household names with brands recognized worldwide are known as ....

????????? companies

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large, well-established and stable public companies which are often household names with brands recognized worldwide are known as ....

blue-chip companies

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??????????? funds are pools of investor
capital for investing in stocks, bonds,
and other financial assets.

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Mutual funds are pools of investor
capital for investing in stocks, bonds,
and other financial assets.

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An agent who trades in stocks and shares on behalf of clients is a ....

??????????

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An agent who trades in stocks and shares on behalf of clients is a ....

stockbroker

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The regular payment which public companies make to shareholders from their profits is called a ....

???????????

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The regular payment which public companies make to shareholders from their profits is called a ....

dividend

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The ratio of a company’s dividend compared with the price of its stock is known as its ....

??????????

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The ratio of a company’s dividend compared with the price of its stock is known as its ....

dividend yield

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The number of shares being traded at any time.

the trading volume

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an investor's collection of various stocks and shares is referred to as their ....

share ??????????

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an investor's collection of various stocks and shares is referred to as their ....

share portfolio

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????????????? involves trading in a public company's stock by someone who has non-public, material information about that stock for any reason. ????????????? can be either illegal or legal depending on when the ??????? makes the trade.

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Insider trading involves trading in a public company's stock by someone who has non-public, material information about that stock for any reason. Insider trading can be either illegal or legal depending on when the insider makes the trade.

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?????????? is when a broker lends you money to give you access to
a larger trading position than you might otherwise be able to afford.
In other words, an investment model in which the trader is required
to put up only a fraction of the total position value. The initial deposit
is ??????????d so the trader get much bigger exposure. The size of this
small cash stake, known as a ????????? payment, varies with the
types of assets and markets in which you want to trade.

SHARETRADING

Leverage is when a broker lends you money to give you access to
a larger trading position than you might otherwise be able to afford.
In other words, an investment model in which the trader is required
to put up only a fraction of the total position value. The initial deposit
is leveraged so the trader get much bigger exposure. The size of this
small cash stake, known as a margin payment, varies with the
types of assets and markets in which you want to trade.

SHARETRADING


This is the term or formula used to determine whether a stock is undervalued or overvalued.

??????????

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This is the term or formula used to determine whether a stock is undervalued or overvalued.

the price-to-earnings ratio

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The process of selling part of a company in the form of shares, which are then traded on a stockmarket is ....

a ??????????

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The process of selling part of a company in the form of shares, which are then traded on a stockmarket is ....

a flotation

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When you buy and hold shares for years with long-term profit in mind you are making a ....

long-??????????

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When you buy and hold shares for years with long-term profit in mind you are making a ....

long-term investment

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???? is a measure of a stock’s performance or
volatility compared to the broader market. Its ????
can help traders assess the risk of holding a stock.

    ???? =1 exactly as volatile as the market
???? >1 more volatile than the market
  ???? <1>0 less volatile than the market
???? =0 uncorrelated to the market
           ???? <0 negatively correlated to the market

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BETA is a measure of a stock’s performance or
volatility compared to the broader market. Its BETA
can help traders assess the risk of holding a stock.

    β =1 exactly as volatile as the market
β >1 more volatile than the market
  β <1>0 less volatile than the market
β =0 uncorrelated to the market
           β <0 negatively correlated to the market

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If a company's shares are buoyant (doing well!) they may decide to make another share offer in order to raise money. This is referred to as a ....

??????????

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If a company's shares are buoyant (doing well!) they may decide to make another share offer in order to raise money. This is referred to as a ....

secondary offering

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Something pledged as security for repayment of a loan
(to be forfeited in the event of a default) is called ??????????

"She put her house up as ?????????? for the bank loan."

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Something pledged as security for repayment of a loan
(to be forfeited in the event of a default) is called collateral

"She put her house up as collateral for the bank loan."

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A limited partnership of investors that uses high risk methods such as investing with borrowed money in the hope of realizing large capital gains is a ....

??????????

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A limited partnership of investors that uses high risk methods such as investing with borrowed money in the hope of realizing large capital gains is a ....

hedge fund

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A ?????????? is when a stock price
rises at a noticeably quicker pace.

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A price rally is when a stock price
rises at a noticeably quicker pace.

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   A ?????????? is a contract between two or more parties whose value is based on an
   agreed-upon underlying financial asset (like a security) or set of assets (like an index).
   Common underlying instruments include bonds, commodities, currencies, interest rates,    market indexes, and stocks.

A ?????????? is a contract between two or more parties whose value is based on an
agreed-upon underlying financial asset, index, or security.
Futures contracts, forward contracts, options, swaps, and warrants are commonly
used ??????????.
??????????v can be used to either mitigate risk (hedging) or assume risk with the expectation of commensurate reward (speculation).

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   A derivative is a contract between two or more parties whose value is based on an
   agreed-upon underlying financial asset (like a security) or set of assets (like an index).
   Common underlying instruments include bonds, commodities, currencies, interest rates,    market indexes, and stocks.

A derivative is a contract between two or more parties whose value is based on an
agreed-upon underlying financial asset, index, or security.
Futures contracts, forward contracts, options, swaps, and warrants are commonly
used derivatives.
Derivatives can be used to either mitigate risk (hedging) or assume risk with the expectation of commensurate reward (speculation).

SHARETRADING

??????? stock is collateral used to cover the credit risk of an investor.
Part of stocks held that investors deposit with a broker or an
exchange as protection from the risk they pose to the broker or the
exchange. The risk is higher in short selling or derivatives trading;
it is then that ??????? stocks provide coverage.

SHARETRADING

Margin stock is collateral used to cover the credit risk of an investor.
Part of stocks held that investors deposit with a broker or an
exchange as protection from the risk they pose to the broker or the
exchange. The risk is higher in short selling or derivatives trading;
it is then that Margin stocks provide coverage.

SHARETRADING