1.) STOCKS: A "part" of a company owned by a shareholder.
:: Bobby bought ten stocks in the Verizon company, which gave him a percentage of the company's assets.
2.) BONDS: A certificate of a specified portion of debt due to be paid by the government. A debt investment where the investor loans money to a buisnesss, that borrows funds and returns money with interest.
::Henry placed a bond for his debt on his mortage.
3.) DOW JONES: An indicator of stock market prices, it is based on the share values listed on the NYC stock exchange. Adds the component stocks prices and dividing by the number of componets.
::The Dow Jones shows the values of the entire stock market.
4.) EQUITY: A stock/security representing an ownership interest.
::The equity of my car is not paid off yet.
5.) DIVIDENDS: A companies profits paid in a fixed proportion, either in cash or more shares.
::I bought shares from APPLE, but I do not get dividends from that company.
6.) EARNINGS: Money earned through paid employment, as profit, or from investments.
::The earnings I made last week reflected how I worked.
7.) PRIVATE COMPANIES VS. PUBLIC COMPANIES: A private company cannot be seen by the public. Public companies allows the public to have access to their stocks.
:: Apple is a public company that people can by stocks from, but USPS is a company that is privatel owned.
8.) GROWTH STOCK: Shares in a company whose earnings are expected to grow above average.
:: Amazon's growth stock is expected to grow 500% with their new Kindle.
9.) RISK: A possibility of losing some or all of your original investmeant.
:: The risk I have of losing more money in the Tiffany's jewelry company is high because not many people are buying jewerlry right now.
10.) SMALL CAP: Stocks with a small market capitalization ranging between;3 million to 2 billion.
:: The ABM company is considered a small cap because it is making 1 billion.
11.) MID CAP: Stocks with an average market capitalization of two billion to ten billion dollars.
:: vFinance Inc. is a mid cap because their income is $9.6 billion.
12.) LARGE CAP: The largest market capitalization.
::Crown Crafts Inc. is a large cap because their income is 34.4 million dollars.
13.)Explain Dow Jones Number: The number of the Dow represents the average price of 30 of the largest stocks being traded and the number comes from what the price of these stocks are on any given day.
::Today, the Dow Jones went up 1.3%.
14.)S and P 500: Five hundred stocks chosen for market size.It stands for the standard and poors 500 and is an index made up of 500 different stocks and is the benchmark of the overall market.
:: The S and P 500 gained 700$ overall today.
15.)Russekk 2000: A measurement indicating the performance of 2000 small companies.
::The income of the Russekk 2000 gained 7.43% today.
16.)Treasury Bond:A bond with a fixed interest issued by the government.
::My treasury bond will be worth more in 15 years.
17.)Inflation: The general increase in price for goods and services over time.
:: It is not good for the economy to have an inflation.
18.)Gross Domestic Products:The dollar value of ALL the finished goods and services produced within a country in a specific time period.
::I bought a new Hummer today so I contributed to the United States gross domestic products.
19.)Currency:General name for money.
::The currency in my back is not very much.
20.)Infrastructure: The organizational base to a business or our nation.
::If the Apple Company did not have an infrastructure, they would not be so organized.
21.) Economy: Does not have to do with the government,
:: The economy is struggling ever since the recession
22.) Supply and Demand: People need what other people sell.
::Farmers have a strong use of supply and demand because they grow what other people need.
23.)Economic System: They system of production, distrubtuion and consumption.
::The recession hurn the economic system.
24.)Assets: Something you can sell.
::My car is an asset.
25.)Accounts Payable: The liability to a creditor,carried to an open account.
::I have been paying my accounts payable, but I fear I will miss the dead line.
26.)Accounts Recievable: Moneyed owed to you, (should be much bigger than account payable.) A claim against a debator which is carried on an open account. It is usually limited to debts due from the sale of goods and services.
::My accounts recievable is to pay back my dad for barrowing money for my car.
27.) Interest: Money given to you by the bank (savings account=more, checking acount=less), or given to the bank (loan).
::I do not get a big interest for my checkings account. :(
28.)Ammoratize: pay off a cost of an asset, principle and interest.
:: I ammoratize my car payments so now I know how much I am paying in interest.
29.)Economic Index: A series of economic instroments to see how the economy is doing. DOW JONES
::I use the dow jones for my econmic index.
30.)Depreciation: The value is going down.
:: When Steve Jobs was alive, Microsoft was deprecitated.
31.)Gross margin: Profits diveded by net sells.
::This month I made 100 dollars and sold 100 candy so my gross margin is 1 dollars.
32.)Earnings Per Share: The amount of money you make off a share.
I make 5 dollars as my earnings per share.
33.)Liabilities: A companies debts or obilgations that are due.
34.)overhead expense:
35.)Owners equity:Overhead ratio that is a metric allowing companies to evaluate expenses as a percentage of incom.
36.)Production cost:The cost related to making or acquiring goods and services, directly generates revenue for a firm. Direct costs are traceable to the creation of a product, includes costs for materials and labor.
37.) Working capital- the cash available for a day to day operations of an organization.
38) loan- a written/oral agreement for a tempory transfer of property from its owner tor a borrow. Promises to return it according to the terms of agreement.
--I took a five thousand dollar loan out to buy a car, my term of agreement is to pay a certain amount every second day of the month, for three years.
39.) loss leader- good or service advertised and sold at a below cost price. The purpose is to bring in customers to the supermarket, assumes they will be stimulated to buy a full priced item.
40.- scarcity- Less goods are available than the demand for them. OR only too little money is availabe to their potential buyers for making the purchase.
42- explicit costs- Rent, salaries, wages, or utility bills-- expenses that is contractual in nature and definite in amount. Recognizable for classification and recording.
An employee took a vacation and traveled, his explicit cost included travel expenses, the cost of hotel room, and entertainment.
43-implicit costs- Cost associated with an actions traeoff. Represents the actual costs of an activity and represents a cost that isn't recorded. It is instead, implied.
An employee took a vacation so his implicit cossts related to the tradeoff. The wages that the employee could have earned if the vacation was not taken.
44-Price- and amount that an item is worth
- The price of my pencil was one dollar.
45- Relative price- The price of a one thing as it compares to another. Presented as a ratio between the two prices. Comparing two shampoo bottles against each other.
- The relative price of Dove shampoo is more expensive than Panteen.
46- Incentives- A supplemental reward serving as a motivational device for a desired action or behavior.
47. Profit- The surplus remaining after total costs are deducted from total revenue. And the basis of which tax is computed and divdend is paid. MEASURE OF SUCCESS IN AN ENTERPRISE.
48. loss- the amount deducted from the total cost.
49- Equilibriums- state of stable conditions where all significant factors remain more or less constant over a period of time. There is little or no inherent tendecy for change.
The market is in equilibrium if the amount of goods that buyers wish to buy at the current price is matched by the amount the selleres want to sell.
50- Surplus- An extent to which generation of goods, resrouces (capital), and services exceeds their consumptions.
51- Shortage- a situation where the quantity availabe or supplied in a market falls short of the quantity demanded or required at a given time or price.
52- Minimum wage- a price where the government chooses the price at the lowet the employee can be paid. The lowest amount people can get paid, in every state.
The minimum wage is 7.15 an hour in Wyoming.
53- Price floor- the limit beyond what a cost will not be allowed to fall.
54- Bear market- A period where the prices of securities or commodities fall by 20% or more. If happens, the investment interest is normally limitited, concernes about the state of the economy abound, and dealers are more inclined in selling their investment portfoliors than to increase their risk by holding.
55- Bull market- When securities in the market are rising, BULLS are trading in high volumes. Investment interest is high, and the public views the economy as strong, and getting stronger.
- The bull market that ended in 2000 lasted 15 years.
56- Boom- a period that follows recovery phase in a standard ecomomic cycle. It is characterized by an economy working at full or near full capacity, strong consumer demand, a low rate of unemployment, and a rising stockmarket. It is usually accompanied by rapidly incresing consumer prices. (inflation)
57- Bill of exchange- A written, unconditional order by one party to another. To pay a certain sum, it is either immediate or a fixed date. For payment of goods and or services received.
58- Budget deficit- and amount where the actual expenses exceed planned expenses, it is the opposite of budget surplus.
59- capital- factors of a production used to create goods or services. They are not themselves in the process.
60- short sell- Trading strategy where an investor borrow shares of a security or futures contract. offers them for sale to other investors. If the price goes down, (believes), they will buy it the position back at a lower price and return them to the lender. When the price rises, the investor will be forced to buy the shares or contract back at a higher price to return them to the lender, results in a loss. The gross profit (loss) on the trade will be the difference between the buy and sell price.
61-shortcover- When people repurchase a previously sold contract.
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