INVESTING

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What is a Stock?
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Investing in a Corporation. Buying its
stock. Share of stock. Stockholder Dividend
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What is a Stock Exchange?
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A location where orders to buy and sell
stock are sent and carried out.
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Stock Exchange NASDAQ New York American
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NASDAQOTC

• N- National
• A - Association
• of
• S - Securities
• D - Dealers
• A - Automated
• Q - Quotation System

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Types of Stocks

• Growth - Reinvests profits into Co.
• Penny - Less than 5 per share
• Blue Chip - Well established Co.
• Income - Consistently pays a dividend
• Cyclical - Up and Down with Economy
• Defensive - Remains stable even during economic
  decline

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Common Vs. PreferredCan only lose what you put in

• COMMON
• Vote - policy decisions - more shares more votes
  (Proxy)
• Receive Dividends if Co. is doing well
• Paid 2nd
• Risky

• PREFERRED
• No voting rights
• Dividends are fixed
• Paid first
• Less Risky

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BULL VS. BEAR

• BULL - Is a stock market with rising stock prices
  over an extended time.
• BEAR - Is a stock market with falling prices over
  an extended period of time.

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Vocabulary

• Prospectus how fund operates, distributed by
  law, The company Must provide