Stock market Study Notes

Essay by thegreatalifagHigh School, 10th gradeA+, September 2007

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Definitions:Annual Report-Finical Statements in report structure, presented by public companies for their shareholdersAsk Price-The lowest cost someone is prepared to pay for a stock.

Bear Market-Stock prices fall in this market in which there are more sellers than buyers.

Bid- The highest cost someone is prepared to pay for a stock.

Board LotA typical trading unit! In the Toronto Stock Exchange:If the trading price per unit is fewer than $0.10, the board lot size is 1,000 unitsIf the trading price per unit is $0.10 to $0.99, the board lot size is 500 unitsIf the trading price per unit is $1.00 or more, the board lot size is 100 unitsBonds-When money is lent to companies, notes are used to signify this transactionBroker-An advisor about investment opportunities, who help people buy and sell stock but also charging commissionBull Market-A market with a large rising trend where there are more buyers than sellers.

Call OptionIt is an alternative which allows someone the right to purchase a stock at a precise price within a precise time. Calls purchased by people who suspect a stock is going to rise but do not have large amounts of money to invest.

Capital Gain-All earnings from assets including stocks, bonds, selling of propertyCertificate-Proof of the ownership of a stock or bondClosing Transaction-An order to end an option or futuresCommission-Money given to a broker when he provides a transaction serviceCommodities-traded goods like timber, metals or agricultural productsDay Order-An order that is only legitimate on the day put in or otherwise it is deleted.

Delist-removal of a company due to bankruptcy of the company or didn't fulfill expectations.

Diversification-ownership of numerous stocks from various companies as a more safer approach to the stock marketDividend-money given to shareholder which is a fraction of a company's profitDividend Yield-When the Dividend is...