(URL) Stock Market Glossary: Public Company
Public Company – A company with publicly traded shares that anyone can buy in the stock market.
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Learning to navigate the stock market as a new investor can be intimidating, but getting familiar with basic stock market terms can get you started sooner than you think. Understanding these fundamental concepts is key to making smart investing decisions, keeping a pulse on the market, and eventually taking on more complex trading strategies. Use the following terms to get a jump start on learning basic stock market vocabulary and create a strong foundation for your long-term wealth goals.
Public Company – A company with publicly traded shares that anyone can buy in the stock market.
Quantitative Analysis – Analysis focused on a corporation’s financial data including looking at profit-and-loss statements, sales and earnings histories, and…
Quarterly Earnings Report – A company’s report of earnings completed once a quarter (4x a year) for investors.
Quote – The bid or ask price quoted for a stock at a given time.
Rate of Return – Your annual income on an investment.
Record Date – Date set by a company on which an individual must own shares to be eligible to receive…
Return – The increase in an investment’s value during a year expressed as a percentage of the investment’s value at…
Reverse Split – When a company decreases the number of outstanding shares thereby increasing the price per share. It does…
Risk – The chance of losing all or part of the value of an investment.
Risk-Averse – An investor who will trade off a higher return for the benefit of greater certainty of return.
Risk Management – Having strategies that help mitigate risks associated with your investments.
Risk Tolerance – A measure of how much risk (loss) you are willing to take. It is based on several…
Rule of 72 – A calculation used to find the number of years required to double your money at a…
Sales – The amount of money a company receives by selling a product or service. Also called revenue.
Saving – Money set aside for future use such as emergencies or fun.
Savings Account – A deposit account at a bank or similar institution that earns interest.
Scam – A fraudulent business scheme; a swindle.
Sector – A broad group of stocks, often in one industry. Pharmaceutical companies are considered in the health care sector…
Securities and Exchange Commission (SEC) – An independent federal agency that oversees and regulates the securities industry in the United…
Securities Fraud – Also known as investment fraud, is a practice where investors are deceived and manipulated, resulting in theft.