WOW 6 The Stock Market Stock Exchange One

WOW 6 – The Stock Market

Stock Exchange: • One of the organized stock markets with a centralized trading floor. Auction-type trading allows traders to sell stocks to the highest bidder or buy stocks from the lowest supplier

Stock Market: • A market in which the people trade stocks they already own • NASDAQ: The National Association of Securities Dealers Automated Quotation system is an important part of the over-the-counter market. NASDAQ is an electronic marketplace listing prices of more than 5, 000 stocks • NYSE: The New York Stock Exchange, which is one of the organized stock markets in the US

Mutual fund • : A company that pools the money of many investors to buy a large selection of securities that meet the fund's state investment goals

Stockbroker: • A broker who accepts orders to buy and sell stock and then transfers those orders to other people who complete them

Stockholder • An owner of a share of stock

Stock Split • The division of a stock into a larger number of lower-priced shares

Short-term investing • : The continual buying and selling of stock in an effort to have one's money grow faster than the general level of stock prices

Securities • A broad range of investment instruments, including stocks, bonds and mutual funds

Penny stock: • Stocks that sell for less than $5 per share

Bear market: • A market characterized by falling prices of 15 percent or more; characterized by pessimism

Bull market: • A rising stock market (in both volume and prices), which is characterized by optimism

Blue chip stocks: • Stocks in the biggest, most established, and consistently profitable companies in the United States