Vocabulary!

Vocab:
1. Stocks: A share of the ownership of a company.
Sentence: I bought 150 stocks from Hollister so i now have special ownership privledges.
2. Bonds: Are used to finance a variety of projects or activities.
Senctence: I opened my own saving bonds so in 12 years i can go and collect my money that has doubled from the bank.
3: Dow Jones: A system of telling how the stock market prices are doing.
Sentence: On Google Finance Dow Jones seemed to be pretty down today.
4:Equity: Ownership of an asset that is completely paid off.
Sentence: My friends car will become an Equity after she pays the rest of her payment.
5. Dividends:a distribution of a portion of the companies earnings.
Sentence: My mom  earns a dividend subbing for teachers at the school.
6. Earnings:amount of profit that a company produces
Sentence: Target was doing really well today and their earnings were higher then yesterday.
7. Private companies vs public companies: private= inaccessible public= open to the public
Sentence: Wal-Mart is known as a public company because you can buy stocks off of it as other companies are private and do not allow you to buy stocks.
8. Growth stocks: shares of a company whose earnings are expected to grow above average
Sentence: Rue 21’s growth stocks are becoming higher then average because they are staying in business and having great sales.
9. Risk - In a return risk is the possibility that one might lose some or all of the investment
sentence: When I reviewed my stock portfolio the return lost quite a lot compared to the original investment it was a higher risk than i thought it would be.
10. Small Cap - Companies that have a market capitalization between 300$ million and 2$ billion.
sentence: Buckle would be known as a small cap company because its worth is alot less then other companies.
11. Mid Cap - Companies that have a market capatalization between 2$ billion and 10$ billion.
sentence: Target would be known as a mid cap company because its worth is between 2-10 million.
12. Large Cap - companies that have a market capatalization of more than 10$ billion.
sentence: i think Apple would be a large cap company because it is a huge company and is worth alot more then 10 million.
13.Dow Jones- an indicator of stock market prices; based on the share values of 30 blue-chip stocks listed in the New York Stock Exchange.
sentence: When Dow Jones is up, it helps our economy go up as well.
14.s&p 500- 500 stocks chosen for market size, ment to reflect the risk  or return characteristics of the large cap universe.
sentence: Apple is considered a part of S&P 500
15.Russell 2000- index measuring the performance of 2000 smallest companies.
Sentence: Yahoo Finace shows that russell 2000 is down 0.38% today.
16. Treasury Bond- a fixed interest issued by the U.S government with a maturity of more than 10 years.
Sentence:The government pays for all of the treasury bonds.
17 Inflation - The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling
Sentence: With the inflation of the market buying groceries is difficult.
18 Gross Demestic Product - The monetary value of all the finished goods and services produced within a country's borders in a specific time period
Sentence: The GDP is a good inductor of knowing how the consumer and the producers are doing.
19 Infrastructure - The basic physical systems of a business or nation. Transportation, communication, sewage, water and electric systems are all examples of infrastructure
Sentence: When the infrastucture of the US deteriorates it effects everyone in the country.
20 Currency - A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy.
Sentence: The currency of my money equals up to $25.00
21. Economy-thrifty management; frugality in the expenditure or consumption of money materials, etc.
Sentence: America's economy is going down the drain because of the way we spend our money.
22. Economic System-the system of production and distribution and consumption
Sentence: Americas economic system is very unbalanced and causing people to lose money.
23. Supply And Demand-n classical economic theory, the relation between these two factors determines the price of a commodity.
Sentence: The supply and demand of milk is very low so the prises are raising to gain money to get more.
24. Interest- a charge for the use of credit or borrowed money.
Sentence: The loan that ive recently taken requires me to pay low interest payments monthly.
25.Assets:anything you can sell.
Sentence: An inquiry into the debtor's affairs is made by the official receiver and the debtor's assets are realized and distributed among editors.
26.Accounts payable:short term debt payments.
Sentence:Through a single software package, a company could manage accounts payable far more effectively.
27.Accounts recieveable:money owed to the business by the client
Sentence:Accounts receivable comprises the remaining amount of gross revenue which is carried forward in customers account receivable.
28.Amoritize: paying off bills or payments.
Sentence:I amortized my house off finally.
29.economic index: tells you what goes on in the stock market as well as the economy.
Sentence: the economic index is pretty good today.
30.depreciation: to lower the price or value of an item.
Sentence:A car has a depreciation rate as soon as you Drive if off the lot.
31.Gross margin:profits divided by debt sales.
Sentence: the gross margin this year is pretty bad because we lost money.
32.Earnings per share:the net income of a corporation divided by the total number of shares of its common stock outstanding at a given time.
Sentence:The earnings per share on Target is going up.
33.Liabilites:moneys owed; debts.
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34.Overhead expense:the costs associated with doing business, which are not directly related to the goods or services.
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35.Owners equity:is the amount left over after all Liabilites are taken care of.
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