Investing 12.2 Stocks Buying And Selling WHS Albert Exam 39 Questions with Verified Answers
Security - CORRECT ANSWER A financial asset that can be
... [Show More] bought and sold in a financial market.
Securities Exchanges - CORRECT ANSWER Places where brokers, representing buyers and sellers, meet to trade securities
NYSE - CORRECT ANSWER A major stock exchange that handles trades through a combination of auctions and computerized networks
ICE - CORRECT ANSWER Intercontinental Exchange; a global network of securities exchanges including the NYSE
Floor Broker - CORRECT ANSWER A member of a brokerage house who completes a customer's buy or sell order on the floor of a stock exchange
Specialist - CORRECT ANSWER Member of a stock exchange who maintains a fair and orderly market in one or more securities.
Trading Posts - CORRECT ANSWER A specific location on the floor of a stock exchange where a stock is traded
NASDAQ - CORRECT ANSWER A major stock exchange that handles trades through a computerized network
BATS - CORRECT ANSWER A global network of stock exchanges in the US and Europe that handles trades through a computerized network
Circuit Breakers - CORRECT ANSWER Drops in the S&P 500 at which trading stops for a period of time on US stock exchanges
Bull Market - CORRECT ANSWER A prolonged period of rising stock prices and a general feeling of investor optimism
Bear Market - CORRECT ANSWER A prolonged period of falling stock prices and a general feeling of investor pessimism.
Retail Investor - CORRECT ANSWER An investor who is an individual, not a company.
Institutional Investor - CORRECT ANSWER Large organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds or the funds of others
Market Order - CORRECT ANSWER An order to buy or sell a security at the best price available at the time it is placed
Limit Order - CORRECT ANSWER An order to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level
Securities Broker - CORRECT ANSWER A financial intermediary that acts as an agent for investors who want to buy or sell securities
Agent - CORRECT ANSWER One who has authority to act for another
Full-service Broker - CORRECT ANSWER A broker that provides a large variety of services to its clients, including research and customized advice
Discount Broker - CORRECT ANSWER A broker that only takes and executes orders to buy and sell; may give general advice
Primary Market - CORRECT ANSWER A financial market in which new issues of a security are sold by a corporation to initial buyers.
Initial Public Offering - CORRECT ANSWER The first time a stock is offered to a select group of the publin in the Primary Market
Secondary Market - CORRECT ANSWER A financial market in which investors buy and sell existing securities among each other
Direct Investing - CORRECT ANSWER Buying stock directly from corporations rather than through an exchange
Indirect Investing - CORRECT ANSWER Buying investments that invest on the shareholder's behalf
Mutual Fund - CORRECT ANSWER The pooling of money by many investors to buy a selection of securities
Annuity - CORRECT ANSWER A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement.
Pension - CORRECT ANSWER A sum of money paid regularly by an employer to an employee after retirement.
Margin Account - CORRECT ANSWER A brokerage account in which the customer has been extended borrowing privileges by the brokerage firm
Leverage - CORRECT ANSWER The use of debt financing of an investment to maximize the return
Margin Call - CORRECT ANSWER A demand by a broker that a customer deposit enough to bring his margin up to the minimum requirement
Short Selling - CORRECT ANSWER Selling stock borrowed from a broker that must be replaced at a later time.
Day Trading - CORRECT ANSWER The buying and selling of securities on the same day, on the basis of small, short-term price fluctuations.
Volatility - CORRECT ANSWER Indicates how much and how quickly the value of an investment changes.
Market Timing - CORRECT ANSWER Moving into and out of different investments because of beliefs about their expected performance
Buy And Hold - CORRECT ANSWER A long-term plan of holding stock for several years to receive dividends and make capital gains
Stock Split - CORRECT ANSWER An increase in the number of outstanding shares with a proportional decrease in the market price
Dollar Cost Averaging - CORRECT ANSWER A long-term plan of purchasing an equal dollar amount of the same stock at equal intervals
Dividend Reinvestment Plan - CORRECT ANSWER A plan that allows current stockholders the option to reinvest in the corporation by using their dividends to purchase more stock [Show Less]