Vocabulary used this week




WEEK 2 (what is company)

WEEK 3 (what is a stock)

WEEK 4 (how much risk can you take)

WEEK 5 (How does money


WEEK 6 (Strategy for a BEARmarket)

WEEK 7 (Diversification)

Week 9 

 Social Responsibility

401K PLAN retirement savings plan funded by employee

contributions and (often) matching contributions from the employer.  Contributions are taken from pre-tax salary and the funds grow tax free until withdrawn.

ACCOUNT SUMMARY provides you with a financial summary of your portfoliio.  Important info such as total equity of portfolio and buying power can be found here.

ACCOUNT HOLDINGS list of all open positions in a porfolio. Includes both Long Positions (stocks bought)  and Short positions (short sold stocks.) lists ticker, number of shares, original cost per share, the net cost (after broker fees are taken out), the current price, the current value (number of shares times current price) and unrelaized gain or loss with the present gain or loss

AMERICA'S INDICES list of several major indices   like

NASDAQ Composite Index, the S&P500 Index, etc and is updated during the day with an approximate 20 minute delay.

BEAR MARKET prolonged period of falling stock prices, often measured by a decline of 20 per cent or more

BETA NUMBER calculation that helps measure the level of risk in investing in a stock

BULL MARKET prolonged period of rising stock prices

CERTIFICATE OF DEPOSIT (CD) special form of deposit offered by banks that generally pays compound interest for a fixed period of time.

COMMON STOCK shares of a company that do not guarantee a dividend and have more risk and volatility than preferred shares.  Common stock holders have the benefit of providing shareholders with the right to vote for the board of directors as well as on issues that come up before the board at the annual meeting of shareholders

COMPANY a business or association usually formed to manufacture or supply products or services for profit

 COMPOUND INTEREST interest added to a principal at regular intervals so that each subsequent interest calculation is based on the original principal and the added interest.  For example, if you have $100 in a savings account that pays 5 per cent interest you receive $5, if it is compound interest you receive 5.12  because it pays interest on the interest.

CORPORATION a company legally separate from stockholders who own it and the managers who run it. 

COST BENEFIT ANALYSIS process of balancing the cists and benefits to aid a company or investor in making a decision. 

DIVERSIFICATION spreading investment funds through a variety of savings and investments to reduce risk.

DIVIDEND Part of a company's profits (earnings) that it pays as money to stockholders

EARNINGS The amount of money that remains after subtracting the company's expenses from its revenue

ENTER A TRADE  where you complete all your buy/sell transactions. 

ENTREPRENEUR  person who organizes, operates and assumes the risk for a business venture


Also referred to as environmentally friendly investing, means that an investor has chosen to align his/her financial goals with a conscious decision to protect and preserve the environment.

ENVIRONMENTelements of the natural world including the earth, its oceans, air and land

ENVIRONMENTALISM  concern for the preservation, restoration or improvement of the natural world including conserving natural resources and minimizing pollution to the air, land and water

GAINS AND LOSSES list of realized gains or losses from the sale or short cover of stocks.  Gains or losses only become realized when a stock position is closed, either sold or short covered.  Interest received is paid and dividends received are also consideered realized gains or losses.  Any stock that is still held in your portfolio will not be listed on this page; gains and losses for stocks still held in portfolio are unrealized.

GREEN COMPANY company that aligns its financial goals with a commitment to preserving and protecting the environment.  British Petroleum claims to reflect environmental values in its business decisions

GREEN MUTUAL FUNDS mutual fund that only invests in green companies

INDEX Reports changes, usuall expressed as percentage in specific financial market.  Each index measures the market from specific starting point.  Some indexes are:  Dow (NYSE), S&P 500 (NYSE) Russell (NASDAQ)

INDUSTRY Group of companies that make the same products, i.e. pharmaceutical companies

INITIAL MARGIN REQUIREMENT The minimum amount of equity an investor must have in a brokerage account in order to borrow for short-selling transactions or margin purchases.

INDIVIDUAL RETIREMENT ACCOUNT (IRA)individual retirement account (IRA) allows a person whether covered by an employer sponsored pension plan 401K or not to save money for use in retirement, deferring taxes on the accounts earnings until the person begins to withdraw from the account.  Funds in an IRA may be invested in a broad variety of investment vehicles.

INTEREST fee charged for using another's money or credit.  It is expressed as a percentage rate over a period of time.  For example, "my bank now pays 5 percent interest per year on my savings account."

INVESTOR Someone who risks funds by purchasing financial products with the hope the investments will increase in value over time.

INVESTOR RESEARCH starting point for teams to research stocks, look up ticker symbols and get updated  quotes (approximately 20 minute delay) on stocks prices.


IPO Initial Public Offering: the initial sale of stock to the public by investment bankers

LONG POSITION The condition of owning stock.  the value of a long position is a stock's current share price multiplied by the number of shares owned.

MARGIN ACCOUNT  brokerage account that allows an investor to borrow money or stocks from a broker

MONEY MARKET ACCOUNT special savings account that 

usually pays interest comparable to those offered by money market mutual funds.  These accounts offer check writing privileges.

NEWS UPDATE provides access to up to date financial industry news and announcements.  on each page of portfolio except Welcome Page

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

PENDING TRANSACTIONS  all trades that have not been processed.  Trades entered before markets close will appear in Account Holdings the next day.  Trades entered after close will receive following days closing prices and will be in Pending Transactions until following day. 

PREFERRED STOCK Shares of ownership of a company in which the share holder is guaranteed a dividend if one is declared and whose shares are usually not as volatile as common stock

PORTFOLIO collection of investments owned by an individual or organization

PRICE/EARNINGS RATIO (also P/E Ratio) ratio of the stock's price per share to its earnings per share

PRINCIPAL sum of money owed as a debt or placed in a savings instrument on which interest is calculated

PRIVATE COMPANY A company that is owned by a person, family or small group of investors that does not sell shars of stock in the company to the public.  

PRIVATE CORPORATION corporation that doesn't sell shares to the public.  You Can't buy shares of a private company in the stockmarket.  Oprah's company Harpo is a private corporation

PUBLIC COMPANY A company that is owned by investors who buy shares of stock, partial ownership of the assets of a business, in the corporation usually through one of the stock exchanges.

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.

RATE OF RETURN your annual income on an investment

RISK the chance of loosing all or part of an investment

         CONSERVATIVE  fixed income and preferred stocks are considered conservative

           MODERATE includes growth stocks, particularly young companies with great potential

           SPECULATIVE stocks that are highly unpredictable.  For example, many dot/com stocks are highly speculative with incredible highs and devasting lows.

RISK  chance of losing all or part of the value of an inestment

RISK TOLERANCE  investors ability to accept loss of some or all of the money he or she has invested, based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

RULE OF 72 way to calculate how long it will take an investment to double given a specific interest rate.  The formula is 72/interest rate=length time it takes (at a given interest rate) for an investment to double.

SAVINGS ACCOUNT deposit account at a bank or similar institution that earns interest.

SECTOR 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 are considered in the health care sector for example.

SHORT COVER buying stock in order to repay a broker for the shares borrowed when the stock was sold short

SHORT SALE sale of stock borrowed from a broker.  Short sellers believe a stock's price will drop and enable them to reay the borrowed shares with lower priced ones.

SIMPLE INTEREST interest calculated at regular intervals soley on pricipal.  For example, if you have $100 in savings that pays 5 % interest annually at the end of 3 years you would have earned $15.

SOLE PROPRIETORSHIP company owned and run by one individual who receives its profits or bears its losses.  A proprietorship is not separate from its owners who is liable for the company debts.

STOCK Ownership in shares of business

STOCK EXCHANGE Place where shares of publicly held companies are bought and sold

TOMBSTONE AD an announcement appearing in financial publications such as the Wall Street Journal announcing a company's Initial Public Offering 

TICKER SYMBOL one to five character symbol used to represent a company when you are buying or selling stock 

TRANSACTION HISTORY provides you with list of all processed trades.  (type of trade, shares, date, cost etc including broker fee)

UNDERWRITER Typically an investment banker, buys an entire new securities issue from the company or government offering it and resells the issue as individual stocks or bonds to the public

VOLATILITY Indicates how much and how quickly the value of an investment, market or market sector changes  The potential unpredictability or instability of a stock.  A volatile stock is a risky stock, one that go very high or very low.