Vocabulary

Study the following vocabulary.

Stock trading

share price – the price or value of one share in a publicly traded company (a share represents a percentage of the capital stock into which a company or corporation is divided)

index – the list of companies traded on a given stock exchange, with list of the current value of their shares (Note:index has two acceptable plurals – indexes and indices)

blue chip – a stock highly valued for its long history of steady earnings in both good and bad economic times

bull market – a strong market showing an overall trend of rising prices / values and active trading

bear market – a weak market showing an overall trend of falling prices / values and sluggish trading

rally – a recovery of share prices or trading activity from a weak level or period

panic – an effect caused by uncertainty or lack of confidence in the market, resulting in selling off of shares at any price possible

crash – very large drop in the prices across the entire market, often the result of panic selling, and having serious and negative economic consequences

turnover – the amount, or volume, of shares being traded in a given period

close – the value of a share, a stock, or the overall market at the end of any given business day's trading activity