from Dr. Greg Valentine, Director
Center for Economic Education at USI
A service for players of the Stock Market Game
Stock Market Vocabulary
Published by the
Evansville Courier Company
Tuesday, November 3, 1998
Many people have trouble listening to the nightly news or reading the financial section of the newspaper because they do not know the vocabulary. Below is a listing of common vocabulary that you hear on the nightly news broadcast and see in newspaper financial sections.
GROWTH STOCKS -- Stocks that show greater than average price appreciation. Market share and earnings' growth are greater than the average for the industry and the economy.
INCOME STOCKS -- Stocks with a high yield. The dividends are high in relationship to market price. Retired investors seeking current steady income find these industry stocks attractive, i.e. Public Utilities.
NET CHANGE -- Indicates that difference between the last closing price reported for the day and the last closing price of the previous day.
ODD LOT -- A number of shares fewer than the usual trading unit of 100 shares (round lot).
OPTION -- The right to buy or sell someting within a specified time and at a specified price.
PORTFOLIO -- A listing of securities (stocks and bonds) owned by an individual or an institution.
PREFERRED STOCK -- A type of stock issued by a company that is more expensive than common stock and will receive any dividends paid by the company before those paid to common stock holders, but after bondholders.
The above article was taken from the Evansville Courier Company. Watch each week for more background information about the stock market.