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●● New York Stock Exchange
Answer: Located on Wall St. in New York, this is the largest and most
famous stock exchange in the world. Consists of larger, well-established,
stable blue chip companies.
●● NASDAQ
Answer: Located at Times Square in New York, this is the largest
electronically trading stock exchange in the country. Consists of newer,
high growth oriented, and volatile companies.
●● Initial public offering
Answer: When private companies go public, they issue shares of stock
for anyone to buy. This is the first time a stock is sold to the public on
the stock market.
●● Ticker symbols
Answer: A unique one (1) to five (5) letter code used by the stock
exchanges to identify a company.
, ●● Diversification
Answer: Owning a wide variety of investments with different
characteristics to reduce volatility.
●● Volatility
Answer: Shows how much a stock or stock market index's returns
fluctuate over time, indicating how widely prices move around their
average.
●● Bull market
Answer: A term used in the financial markets when stock prices have
risen or are expected to rise.
●● Bear market
Answer: A condition in which stock prices fall 20% or more from recent
highs amid widespread pessimism and negative
investor sentiment.
●● Blue chip stocks
Answer: Shares of a large and reputable company, typically possessing a
well-known brand and a long track record
of successful operations.
●● Growth stocks