Term
|
Definition
| The date on which the board of directors announces the size of the dividend, the ex-dividend date, and the payment date |
|
|
Term
|
Definition
| The date on whcih the stock "goes ex," meaning it begins trading in the secondary market "without dividend." In other words, if you buy the stock after its ex-dividend date, you don't get the dividend |
|
|
Term
|
Definition
| A legal agreement a stockholder signs to allow someone else to vote for him or her at the corporation's annual meeting |
|
|
Term
|
Definition
| Increasing the number of stock shares outstanding by replacing the existing shares of stock with a given number of shares. For example, in a two-for-one split, for every share of existing stock you hold, you would receive two shares of new stock |
|
|
Term
|
Definition
| A company's repurchasing, or buying back, of its own common stock |
|
|
Term
|
Definition
| The ratio of the annual dividends to the market price of the stock |
|
|
Term
| Dow Jones Industrial Average (DJIA) or Dow |
|
Definition
| A commonly used stock index or indicator of how well stocks have done. This index is comprised of the stock prices of 30 large industrial firms |
|
|
Term
| Standard & Poor's 500 Stock Index or S&P 500 |
|
Definition
| Another commonly used stock index or indicator of how well stocks have done based on the movement of 500 stocks, primarily from the NYSE |
|
|
Term
|
Definition
| A stock market characterized by falling prices |
|
|
Term
|
Definition
| A stock market characterized by rising prices |
|
|
Term
|
Definition
| Common stocks issued by large, nationally known companies with sound financial histories of solid dividend and growth records |
|
|
Term
|
Definition
| Common stocks issued by companies that have exhibited sales and earnings growh well above their industry average. Generaly, these are smaler stocks, and many times they are newly formed |
|
|
Term
|
Definition
| Common stocks issued by mature firms that pay relatively high dividends, with little increase in earnings |
|
|
Term
|
Definition
| Common stocks that carry considerably more risk and variability than a typical stock. A stock's classification can change over time |
|
|
Term
|
Definition
| Common stocks issued by companies whose earnings tend to move with the economy. A stock's classification can change over time |
|
|
Term
|
Definition
| Common stocks issued by companies whose earnings tend not to be affected by swings in the economy and in some cases actually perform better during downturns. A stock's classification can change over time |
|
|
Term
| Large Caps, Mid Caps, and Small Caps |
|
Definition
| Classifications of common stock that refer to the size of the issuing firm - more specifically, to the level of the firm's capitalization, or its market value. A stock's classification can change over time |
|
|
Term
|
Definition
| A method of stock analysis that focuses on supply and demand, using charts and computer programs to identify and project price trends for a stock or for the market as a whole |
|
|
Term
| Price/Earnigns (P/E) Ratio |
|
Definition
| The price per share divided by the earnings per shar. Also called the earnings multiple |
|
|
Term
|
Definition
| Determining the value of a share of stock by focusing on such determination as future earnings and dividends, expected levels of interest rates, and the firm's risk |
|
|
Term
|
Definition
| A strategy for purchasing common stock in which the investor purchases a fixed dollar amount of stock at specified intervals, for example, quarterly |
|
|
Term
|
Definition
| An investment strategy that involves simply buying stock and holding it for a period of years |
|
|
Term
| Dividend Reinvestment Plan (DRIP) |
|
Definition
| An investment plan that allows the investor to automatically reinvest stock dividends in the same company's stock without paying any brokerage fees |
|
|
Term
|
Definition
| The measure of how responsive a stock or portfolio is to changes in the market portfolio, such as the S&P 500 Index |
|
|
Term
|
Definition
| A measure of the performance of a group of stocks that represent the market or a sector of the market |
|
|
