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Stock Market Terms Study Cards


Master Stock Market Terms with our interactive study cards designed for effective learning. These flashcards use proven spaced repetition techniques to help you memorize key concepts, definitions, and facts. Perfect for students, professionals, and lifelong learners seeking to improve knowledge retention and ace exams through active recall practice.


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What is a stock?

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A share of ownership in a corporation that represents a claim on the company's assets and earnings

What is a dividend?

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A payment made by a corporation to its shareholders typically as a distribution of profits

What is market capitalization?

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The total value of a company's shares calculated by multiplying share price by number of outstanding shares

What is a bull market?

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A market condition where stock prices are rising or expected to rise generally indicating investor optimism

What is a bear market?

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A market condition where stock prices fall 20% or more from recent highs indicating investor pessimism

What is the bid price?

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The highest price a buyer is willing to pay for a stock at a given time

What is the ask price?

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The lowest price a seller is willing to accept for a stock at a given time

What is the bid-ask spread?

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The difference between the bid price and ask price of a stock

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What is volume in stock trading?

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Answer:

The number of shares traded in a security during a specific time period

What is a P/E ratio?

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Price-to-earnings ratio - a valuation measure comparing a company's stock price to its earnings per share

What is an IPO?

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Initial Public Offering - when a private company first sells shares to the public

What is a stock split?

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When a company divides existing shares into multiple shares reducing the price per share proportionally

What is a dividend yield?

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The annual dividend payment divided by the stock's current price expressed as a percentage

What is volatility?

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A measure of how much a stock's price fluctuates over time

What is a limit order?

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An order to buy or sell a stock at a specific price or better

What is a market order?

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An order to buy or sell a stock immediately at the current market price

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What is a stop-loss order?

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An order to sell a stock when it reaches a certain price to limit losses

What is short selling?

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Borrowing shares to sell them hoping to buy them back later at a lower price

What is a margin account?

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A brokerage account that allows investors to borrow money to purchase securities

What is the S&P 500?

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A stock market index that measures the performance of 500 large US companies

What is the Dow Jones Industrial Average?

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A stock market index that tracks 30 large publicly-owned US companies

What is NASDAQ?

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A global electronic marketplace for buying and selling securities and the second-largest stock exchange

What is earnings per share (EPS)?

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Answer:

A company's net profit divided by the number of outstanding shares

What is a mutual fund?

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Answer:

An investment vehicle that pools money from many investors to purchase securities

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What is an ETF?

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Exchange-Traded Fund - a security that tracks an index commodity bonds or basket of assets

What is beta?

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A measure of a stock's volatility relative to the overall market

What is a 52-week high/low?

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The highest and lowest prices at which a stock has traded during the past 52 weeks

What is market maker?

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A firm that provides liquidity by being ready to buy or sell securities at publicly quoted prices

What is after-hours trading?

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Answer:

Trading that occurs outside regular market hours typically through electronic networks

What is a ticker symbol?

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Answer:

A unique series of letters assigned to a security for trading purposes

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