_ $ Basic Stock Market Terms $

Overview - MEHS Student Stock Market Project

Additional Sites

Learn or Research Stock Market & Trading Terms:


Portfolio Resource Sites:


Build an online portfolio:




Financial Calculators:


GO- Best Financial Sites on the Net

GO- Researching Your Stock Buys

GO- Building a Stock Portfolio

GO- Investing Diagram

GO- Stock Market Games

Basic Financial Terms:

Stock - A share of ownership in a company that can be bought or sold

Large-Cap Stock - Shares of ownership in a business with over $5 billion in assets. Stocks of a large, well known national corporation that has performed well historically are often called a "Blue Chip Stock."

Small-Cap Stock - Shares of ownership in a business with under $75 million in assets. These are usually from small, not-well-known corporation that may not have a long record of historical performance

Mutual Fund - A professionally managed collection of investments including stocks, bonds, and real estate.

NASDAQ (Composite Index): A market-value weighted index of all common stocks listed on NASDAQ(National Association of Securities dealers Automated Quotations System). Web site: http://www.nasdaq.com

DOW (Dow Jones Industrial Index): A price-weighted average of 30 actively traded blue chip NYSE stocks. Web site: http://www.dowjones.com

S&P (Standard and Poor's 500): A market-value weighted index of 500 blue-chip stocks. Web site: http://www.standardpoor.com

Trading Survival Terms:

Broker: Your agent who puts you in touch with the dealer and market maker who sells you the stock. Brokers charge you a fee for helping you execute your trades.

Dealer: Buys and sells securities(stocks) for a fee. A middle-of-the-trade agent.

Market Maker: A dealer in the OTC (over-the-counter)market ready to buy specific securities at bid prices and sell at ask prices.

Shares: shares are securities offered for public sale / ownership by corporations

Bid Price: Highest price a market maker is willing to buy a security

Ask Price: Lowest price a market maker is willing to see a security

Trade (buy / sell): Purchase or sell of a security

Portfolio: Sum total of your securities holdings

P/E Ratio: Price-to-earnings ratio. A ratio of the relationship between the price of a stock and earnings per share of that stock.

Misc Terms:

NYSE: Oldest and largest stock exchange in the U.S., located in New York. Web site: http://www.nyse.com

Copyright MEHS 2000