Glossary Terms:

NYSE Made Easy

Glossary terms from:
http://www.econedlink.org/e292


Business

Any activity or organization that produces or exchanges goods or services for a profit.

Choice

Decision made or course of action taken when faced with a set of alternatives.

Corporation

A legal entity owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own.

Decision

A conclusion reached after considering alternatives and their results.

Dividend

A share of a company's net profits paid to stockholders.

Exchange

Trading a good or service for another good or service, or for money.

Investing

The process of putting money someplace with the intention of making a financial gain. Investment possibilities include stocks, bonds, mutual funds, real estate, and other financial instruments or ventures.

Investment

The purchase of capital goods (including machinery, technology or new buildings) that are used to produce goods and services. In personal finance, the amount of money invested in stocks, bonds, mutual funds and other investment instruments.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Price

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

Profit

Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm's explicit and implicit costs from its total revenues.

Rate of Return

Earnings from an investment, stated as a percentage of the amount invested; usually calculated on an annual basis.

Return

Earnings from an investment, usually expressed as an annual percentage.

Stock

An ownership share or shares of ownership in a corporation.

Stock Market

A market in which the public trades stock that someone already owns; the buying and selling of stock.