The Important Vocabulary of Wall-Street by Joakim Sjoquist

wall_street_sign_scaledDuring this class, we’ve been learning lots of new words, words that were previously unknown to me and to many others which I now have great use of.

I will describe each one individually, their meaning and where they are used.

Equity: This is the part that you own in a company, or more specifically, the value of a company after debt and liabilities have been routed out.

Dividend: The amount of money a company give out to its shareholders at the end of their 52-week term.

(Dividend Yield: Is the percentage of a company’s shares that they are giving out in forms of cash.) 

Stocks: A certification or security of an ownership of a company. You own X amount of the company, based on the amount of stocks you have.

I.P.O: An Initial Public Offering. Not all companies that we buy from that are large have stocks, however, if they would want to increase their profits, they would launch an IPO and so stocks would be able to be purchased by the public.

Revenue: The amount of cash flow that a company makes, after all, its sales. It is, not the “Net sales” but the amount of money they have made before all taxations and liabilities.

 Profit: Is the term used for showing how much money a company has made AFTER all expenses. If a company makes $150 000 dollars in revenue and has $120 000 in expenses, the profit is $30 000.

S&P 500: The Standard and Poor 500, is a list of the leading 500 companies in the United States economy on the stock market.

NASDAQ: Is a stock market which is only traded online. It is mainly for technology companies all over the world. Unlike the NYSE it has four ticker symbols in order for customers to easier distinguish the two.

NYSE: The New York Stock Exchange. Is America’s largest stocks market, any company can list on the NYSE as long as they meet their company requirements. This stock market also uses three ticker symbol to define each company.

Ticker-symbol: Is the 3 or 4 letters that represent a company in the stock market. In the NYSE, there are usually 3 symbols, like Coca Cola which has the ticker symbol CCE. In the NASDAQ market, there are four symbols, for example, Netflix Co with the ticker symbol of NFLX.

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