Bus 20/30 (Investing)

Description
The goal is to teach you as much about the investment
world as possible. It is complicated and will take time
to fully understand the basics of the stock market.
This assignment will focus on basic definitions. These
definitions will act as a starting point in order for you
to understand what you are reading when trying to
decide what a good, buy, hold, is or sell.

Phase 1
Starting off you will be given a long list of definitions that have to do with the stock market.
You are to look up all the definitions and put them on your website. This does not have to be
completed all at once. We will be working on this slowly over the course of the semester. Each
Wed we will spend half of our class focusing on our stock market game.
Define and give a picture for the following:
1. TSX
- Toronto Stock
Exchange, A place
where companies
invest to make money.

2. Buy, Hold, Sell

- Buy, hold, sell is what
the analysts tell you to
do with their
companies stocks.

3. Q1, Q2, Q3, Q4

- These are the quarters
of 12 months that
companies give their
financial information.

4. Nasdaq
- A company that
produces the median
stock quotes for over
2500 companies.

5. Expenses
- Money spent or cost
incurred in an
organization's efforts to
generate revenue,
representing the cost of
doing business.

6. P/E
- Price per earnings
ratio is based on how
a companys earnings
and how risky or not
risky they are to
invest in.

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7. Mutual Funds
- made up of a pool of
funds collected from
many investors

10. Bonds
- debt investment in
which an investor
loans money to an
entity which borrows
the funds for a defined
period of time at a
variable or fixed
interest rate.

8. Assets
- A resource with value
that you think will
cause future benefit.

9. Open
- The price a stock
opened at the
beginning of the day

11. Liabilities
12. Close
- A company's legal debts
- What price the stock
or obligations that arise
is at the end of the
during the course of
day.
business operations.

13. Equities
- A stock or any other
security representing
an ownership interest.

14. Net Income

- A companys total
earnings

15. NYSE
- New york stock
Exchange, where you
can go to trade stocks

16. Stocks
- A type of security that
signifies ownership in
a corporation and
represents a claim on
part of the
corporation's assets
and earnings.

17. Gross Income

- A companys revenue
minus cost of goods
sold

18. Volume
- the amount of shares
that trade hands
from sellers to
buyers as a measure
of activity.

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19. Ticker Symbol

- An arrangement of
numbers or letters to
represent a company
on the stock market

20. Normalised Income

- Earnings adjusted for
cyclical ups and downs
in the economy

21. The Charts

- A graph that shows
the highest and lowest
price of a company.
During a trading day.

22. Revenue
23. Dividends
- The amount of money
- A dividend is a
that a company
distribution of a portion
actually receives
of a company's
during a specific
earnings,
period, including
discounts and
deductions for returned
merchandise

24. 52 Week Range

- The lowest and
highest prices at
which a stock has
traded in the previous
52 week

25. Market Cap

- The total dollar market
value of all of a
company's outstanding
shares

28. Forex
- Foreign Exchange,
where you exchange
currency

26. S & P 500

- Best 500 companies in
one portfolio

29. Buy Back

The repurchase of
outstanding shares
(repurchase) by a company
in order to reduce the
number of shares on the

27. YTD
- The period beginning
January 1st of the
current year up until
todays date.

30. IPO
The first sale of stock by
a private company to the
public

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market.

31. Shares
- A unit of ownership
interest in a
corporation or
financial asset.

32. Short Selling

- The sale of a security
that is not owned by the
seller, or that the seller
has borrowed. Short
selling is motivated by
the belief that a
security's price will
decline

33. Commodity
A basic good used in
commerce that is
interchangeable with
other commodities of the
same type.

34. Trailing EPS

- The sum of a
company's earnings
per share for the
previous four quarters.

35. ETFs

37. Subprime Loans

- A type of loan that is
offered at a rate above
prime to individuals
who do not qualify for
prime rate loans

38. Ninja loans

- A slang term for a loan
extended to a borrower
with "no income, no job
and no assets".

An ETF, or exchange
traded fund, is a marketable
security that tracks an
index, a commodity, bonds,
or a basket of assets like an
index fund.

36. Quarterly Reports

- A quarterly filing
made by public
companies to report
their performance.

39. Blue Chip Stocks

-

A nationally
recognized, wellestablished and
financially sound
company. Blue chips
generally sell highquality, widely
accepted products and
services.

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40. Yield
- The income return on
an investment.

41. RRSP
- A legal trust registered
with the Canada
Revenue Agency and
used to save for
retirement.

42. RESP
- A savings plan
sponsored by the
Canadian government
that encourages
investing in a child's
future post-secondary
education.

43. TFSA (Canada)

- An account that does
not charge taxes on
any contributions,
interest earned,
dividends or capital
gains, and can be
withdrawn tax free

46. Penny Stocks

- A stock that trades at a
relatively low price
and market
capitalization, usually
outside of the major
market exchanges.

44. Capital Gains

- An increase in the value
of a capital asset
(investment or real
estate) that gives it a
higher worth than the
purchase price.

47. Moodys, Standard and

Poors, Fitch Group
-

45. Share Holder Activist

- A person who
attempts to use his or
her rights as a
shareholder of a
publicly-traded
corporation to bring
about social change

International credit
rating agencies

48. Opening Bell (What

Time)
Closing Bell (What Time)
- Opening is at 9:29:45
a.m. ET and the
closing is at 3:59.45
p.m. ET

Bus 20/30 (Investing)