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                                                     Stock Vocabulary

Big Board: A name given to the New York Stock Exchange.

Capital gain: The profit realized by an investor who buys a security.

Common stock: A share of ownership in a corporation without a definite dividend rate or the privileges of preferred stock, but usually giving its owner a vote at shareholder's meetings in proportion to holdings.

Corporate bonds: A bond issued by a corporation.

Government bonds: A bond issued by the U.S. Government.

Growth stock: Stock of a corporation which appears to have good prospects for future growth.

Income stock: Money received for a stock.

Limit order: A customer's order to a securities broker to buy or sell at a specific price or better.

Listed: The stock of a company which is traded on a securities exchange.

Interest: Payments a borrower pays a lender for the use of his money.

Liquidity: The process of converting securities or other property into cash.

Margin buying: The amount paid by the customer when he uses credit to buy a security, the balance being lent to him by the broker.

Market: Where securities are exchanged.

Member firms: A brokerage firm, organized as a corporation, which is a member of the New York Stock Exchange.

Municipal bonds: A bond issued by a state or a political subdivision, such as county, city, town, or village.

Odd lot: An amount of stock less than the established 100 share unit or 10 share unit of round lot a unit of or a multiple thereof.

Preferred stock: A class of stock with a claim on the company's earnings before dividends may be paid on the common stock.

Price of stock: Cost of the stock.

Seat: A figure of speech for a membership on a securities or commodity exchange.

Securities: Stocks and bonds, etc.

Short selling: A person who believes a stock will decline and sells it though he does not own any has made a short sale. Stock Exchange: A place where stocks of approved companies are listed and then may be bought and sold.

Stockbroker: An agent who does the buying and selling of stock.

Yield: The payments a stock or bond will provide to the buyer.