Thursday, September 29, 2011

Vocabulary week 2

Risk: Different than expected losing some or all of original investment.
        Whenever you buy a stock you are taking a risk because there is a chance it can go down and you          lose out.
Dividend: A distribution of a portion of a companies earnings.
       After selling on of my stocks I got $50 in dividend.
Private Companies vs. Public Companies: Private Companies are inaccesible for the public, however anyone can buy into Public Companies.
        I was trying to buy a share in a company but couldn't because it wasn't public.
Growth Stock: Shares in a company whose earnings are expected to grow at an above average rate relative to the economy.
       When I compared two stocks I picked one over the other because I saw potential for growth in it.

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