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Terms you should know, if you want to be invovled with the stock market Common Stock Shareholder Preferred stock Stock value Stock broker
THE STOCK MARKET a particular market where stocks and bonds are traded STOCK EXCHANGE A place where stocks, bonds, or other securities are bought and sold.
COMMON STOCK: A common stock is basically an equity investment that represents ownership in a comapny. One share of common stock represents a fractional ownership interest in a company.
PREFERRED STOCK: A stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.
BEAR MARKET: a market characterized by falling prices for securities A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market.
BULL MARKET: a market characterized by rising prices for securities a market characterized by RISING prices for securities Bull markets can happen as a result of an economic recovery , an economic boom, or investor psychology. The longest and most famous bull market is the one that began in the early 1990s in which the U.S. equity markets grew at their fastest pace ever. opposite of bear market. KEY FACT:
TO INVEST: WHAT DOES IT MEAN ... to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, interest, income, or appreciation in value. http://www.oag.state.ny.us/investors/invest_4.html