WORD MEANING
Bid The price a buyer is willing to offer for shares in a company.
Blue Chip Stocks Stocks of leading companies with a reputation for stable growth and earnings.
Bond Certificate issued by companies and governments to their lenders.
Business angel Wealthy person who invests their money in start-ups in return for a percentage ownership. Also called ‘investor angels’ or ‘angel investors’.
Capital Money and other property of companies used in transacting the business.
Capital stock All shares representing ownership of a company.
Commodities Products such as agricultural products and natural resources (wood, oil and metals) that are traded on a separate, authorised commodities exchange.
Dividend A portion of a company’s earnings which is paid to the shareholders/stockholders on a quarterly or annual basis.
Equity The value of stocks and shares; the net value of mortgaged property.
Equities Stocks and shares which represent a portion of the capital of a company.
Futures Contracts to buy or sell securities at a future date.
Insider A person who has access to inside information concerning the company.
Insider dealing / trading Buying or selling with the help of information known only to those connected with the business.
IPO Initial Public Offering – selling part of a company on the stock market.
Issue Put into circulation a number of a company’s shares for sale.
Liabilities The debts and obligations of a company or an individual.
Mortgage Agreement by which a bank or building society lends money for the purchase of property, such as a house or apartment. The property is the security for the loan.
Mutual fund Savings fund that uses cash from a pool of savers to buy securities such as stock, bonds or real estate.
Option The right to buy and sell certain securities at a specified price and period of time.
Par value Nominal face value.
Penny stock Shares selling at less than $1 a share.
Portfolio Various types of securities held by an individual or institution.
Securities Transferable certificates showing ownership of stocks, bonds, shares, options, etc.
Share The capital of a company is divided into shares which entitle the owner, or shareholder, to a proportion of the profits.
Share certificate Certificate representing the number of shares owned by an investor.
Shareholder Owner of shares.
Speculator Someone who buys and sells stocks and shares in the hope of making a profit through changes in their value.
Stock Shares (portion of the capital of a business company) held by an investor.
Stockbroker A licensed professional who buys and sells stocks and shares for clients in exchange for a fee called a ‘commission’.
Stockholder Person who owns stocks and shares.
Trader Investor who holds stocks and securities for a short time (minutes, hours or days) with the objective of making profit from short-term gains in the market.
Investment is generally based on stock price rather than on an evaluation of the company.
Trading session Period during which the Stock Exchange is open for trading.
Venture capital Money raised by companies to finance new ventures in exchange for percentage ownership.
Yield Return on investment shown as a percentage.
. Match the vocabulary words to the following definitions.
1. Return on an investment shown as a percentage. _______________________
2. Stocks of leading companies that have a reputation for solid growth and
earnings. _______________________________________________________
3. A portion of a company’s earnings that is paid to the
shareholders/stockholders. _____________________________________
4. The nominal face value. __________________________________________
5. Shares that sell for less than $1 a share. ___________________________________
6. Those who have inside access to inside information about the company.
________________________________________
7. Various types of securities held by an institution or individual.
_________________________________________
8. A person who owns and shares stocks. ____________________________________
9. The period when the Stock Exchange is open for trading.
_____________________________________________
10. A savings fund that uses cash from a pool of savers to buy stocks, bonds,
and real estate. _________________________________________
11. An investor who holds stocks for a short time with the goal to make a
profit from short-term gains in the market. _______________________________
12. Agricultural and natural resources that are traded on a separate
exchange. _________________________________________
13. A licensed professional who buys and sells stocks for clients in exchange
for a fee called a commission. ___________________________________
14. The owner of shares. ______________________________
15. Money and property of a company that is used in transacting the business.
_________________________________________
16. The value of stocks and shares. _______________________________________
17. The capital of a company is divided into these. The owner of these is
entitled to a portion of the profits. ________________________________________
18. Shares held by an investor. _______________________________________
Activity: Look at the opposing opinions below.State your opinion on either of the statement from each set.
1. Keeping your cash in a savings account is safer.
1. Investing your money is safer.
2. Money makes the world go around.
2. Money is the root of all evil.
3. Playing the stock market is too risky.
3. Most people make money on stocks.
4. Investing in stocks is a wise choice.
4. Investing in real estate is a wise choice.
5. Playing the stock market is interesting.
5. Playing the stock market is a waste of time