Daily Tracking Form

Stock Market Project

Stock MArkey Quizzes

Vocabulary

Company: A business or association usually formed to manufacture or supply products or services for profit.

Corporation: A company legally separate from stockholders who own it and the managers who run it.

Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.

Partnership: A company owned and managed by two or more people who share its profits or losses. A partnership is not separate from its owners, who are liable for the company’s debts.

Private corporation: A corporation that doesn’t sell shares to the public. You Can’t buy shares of a private company in the stock market.

Public corporation: The stock of a public company is owned and traded by individual and institutional investors. In contrast, the stock is held by company founders, employees, and sometimes venture capitalists.

Sole-proprietorship: A company owned and run by one individual who receives its profits or bears its losses. A proprietorship is not separate from its owner, who is liable for the company debts.


Common Stock: Shares represent ownership in a corporation and give the right to vote for the company's board of directors and benefit from its financial success

Dividend: Part of a company’s profits (earnings) that is pays as money or shares to stockholders. In The Stock Market Game, any dividends received are listed in Transaction History and are included in the portfolio’s total equity.

Earnings: Whatever profits or net income remains after subtracting the company’s expenses from its revenue. A company’s profit.

Initial Public Offering (IPO): An IPO is the first issue of stock for public trading made by a company.

Investor: Someone who purchases stocks, bonds, mutual funds and other financial instruments in hopes the investments will increase in value over time.

Parent Company: A company that owns enough voting stock in another firm to control management and operations.


Preferred Stock: Often pay a fixed dividend on a regular schedule. The prices tend to be less volatile than common stock. Preferred stocks tend to move with changing interest rates. Preferred stocks holders cannot vote on corporate matters.

Portfolio: A collection of investments owned by one individual or organization.

Private Company: A company owned by a person, family, or small group of investors that does not sell stock to the public.

Public Company: A company owned by investors who buy shares of stock usually through a stock exchange.

Risk: The chance of losing all or part of the value of an investment.

Risk Tolerance: An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

Stockholder: Also known as a shareholder, is the owner of the stock.

Stock: A security that signifies ownership in a corporation and represents a claim on a part of the corporation’s profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.

Stock Exchange: Place/electronic platform where shares of are bought and sold.


Dividend: Part of a company’s profits (earnings) that is pays as money or shares to stockholders. In The Stock Market Game, any dividends received are listed in Transaction History and are included in the portfolio’s total equity.

P/E Ratio: A company’s closing price divided by its latest annual earnings per share. The Price/Earnings is the relationship between a company’s earnings and its share price. It is calculated by dividing the current price per share by the earnings per share.

Share: A share is a unit of ownership in a corporation or mutual fund.

Stock: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.

Volume: The number of shares traded in a company's stock. Unusual market activity, either higher or lower than average, is typically the result of some external event.


Diversification: an investment strategy in which you spread your investment dollars among different markets, sectors, industries, and securities. The goal of the strategy is to protect the value of your overall portfolio in case a single security or market sector takes a serious downturn and drops in price.

Index: An index reports changes, usually expressed as a percentage, in a specific financial market, in a number of related markets, or in an economy as a whole. Each index — and there are a large number of them — measures the market or economy it tracks from a specific starting point, which might be as recent as the previous day or many years in the past.

Industry: A group of companies producing similar products or services.

Portfolio: A collection of investments owned by one individual or organization.

Risk: The chance of losing all or part of the value of an investment.

Risk Tolerance: An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

Sector: A group of stocks, often in one industry. The performance of any single stock in a sector can be measured against the performance of the group. Pharmaceutical companies, for example, are part of the health care sector.


Default: Failure to pay principal or interest when due. Defaults can also occur for failure to meet non-payment obligations, such as reporting requirements, or when a material problem occurs for the issuer, such as a bankruptcy.

Fixed-Income Investments: Pay interest on a set schedule. Fixed-Income Investments include corporate, municipal, agency, and U.S. Treasury bonds.

High-Yield Bonds: To attract investors, the issuers of these bonds pay a higher rate of interest than investment grade bonds with the same maturity. They are rated below investment grade bonds and are also called “Junk Bonds.”

Issuer: An entity which issues and is obligated to pay principal and interest on a debt security.

Interest rate: Compensation paid or to be paid for the use of money. Interest is generally expressed as a percentage rate. (Also referred to as coupon rate)

Investment Grade Bonds: Bonds that are sold by a very reliable issuer, the government, a large corporation, or a government agency that is most likely to repay the loan and the interest as promised.

IOU: Means exactly as it sounds, “I Owe You.” It is an acknowledgement of a debt.

Maturity: The date when the principal amount of a security is payable

Par value: The principal amount of a bond or note due at maturity.( also referred to as face value)

Prepayment: The unscheduled partial or complete payment of the principal amount outstanding on a mortgage or other debt before it is due.

Principal: The face amount of a bond, payable at maturity

Bonds: An IOU that a company or government sells when it borrows money. Bonds are called fixed-income investments because they pay a fixed amount of interest to the bondholder for the use of his/her money.

Closed-end funds: Like open-end mutual funds, these are collections of securities managed by a professional investment advisor. Unlike open-end mutual funds, their shares are traded on a stock exchange like ordinary stock.

Diversification: An investment strategy in which you spread your investment dollars among different markets, sectors, industries, and securities. The goal of the strategy is to protect the value of your overall portfolio in case a single security or market sector takes a serious downturn and drops in price.

Exchange-Traded Funds: Funds whose shares, like closed-end funds, are traded on a stock exchange. These invest in stocks or bonds that closely follow an index.


Risk: The chance of losing all or part of the value of an investment.

Risk Tolerance: An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

Volatility: Indicates how much and how quickly the value of an investment, market, or market sector changes.

Earnings: Profits, or net income, after the company has paid income taxes and bond interest.

Fundamental analysis: A primary methods for analyzing a stock's potential return. It involves assessing a corporation's financial history and current standing, including earnings, sales, and management, as well as the strength of the corporation's products or services in the marketplace.

Inflation: An increase in the general level of prices of goods and services.

Market Capitalization: A measure of the value of a company; calculated by multiplying the number of outstanding shares by the current price per share. For example, a company with 100 million shares of stock outstanding and a current market value of $25 a share has a market capitalization of $2.5 billion.

P/E Ratio: A company’s closing price divided by its latest annual earnings per share.

Quantitative analysis: Analysis focused on a corporation's financial data including looking at profit-and-loss statements, sales and earnings histories and the statistical state of the economy.

Technical analysis: Tracking price movements and trading volumes in various securities to identify patterns in the price behavior of particular stocks, mutual funds,



Cyclical Stocks: Stocks of companies whose performance tends to mirror the economy. When the economy grows the stocks turn up, and when the economy falters the stocks fall. Automobile and housing sectors are good examples.

Industry: A group of companies producing similar products or services.

Net Income: Total earnings after all expenses and taxes have been paid.

Profit: What remains after subtracting a company’s costs from its revenue. Profit is a company’s reward for taking a risk and successfully producing what people want to buy at prices they are willing to pay.

Revenue: Revenue is the money collected for providing a product or service.

Sector: A group of stocks, often in one industry. The performance of any single stock in a sector can be measured against the performance of the group. Pharmaceutical companies, for example, are part of the health care sector