cpcu 556 vocab

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Author:
mtarman
ID:
112167
Filename:
cpcu 556 vocab
Updated:
2011-10-25 18:55:00
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cpcu 556 vocab
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Description:
cpcu 556 vocab ch 5
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  1. Income Stock
    A stock that generates current income by paying a higher than average current yield
  2. Defensive stock
    A stock is regarded as stable and comparatively safe, especially in periods of declining business activity
  3. Cyclical stock
    A stock in a company whose earnings and share prices tend to fluctuate sharply with the business cycle or with cycles peculiar to its own industries
  4. Blue-chip stock
    A high grade, investment quality issue of a major, well established compay that has a long record of earnings stability or growth and dividend payments in good financial times as well as bad
  5. speculative stock
    A stock that generaly presents far greater risk for the investor than common stock It may be a new issue stock, a high profile company, or a small developing firm
  6. Bear market
    A reasonably long time period during which common stocks in general consistently decline by a significant amount
  7. Leverage
    The use of borrowed funds to try to increase the rate of return that can be earned on the investor's own funds invested in a project
  8. Real Estate Invwestment Trust (REIT)
    A corporation or business trust, similar in concept to a closed-end investment company, that meets the tax law requirments to be a REIT and invests primarily in real estate
  9. Call option
    An option allowing the buyer to purchase from someone a certain stock or another asset at a set price at any time within a specified period
  10. Put option
    An option allowing the buyer to sell a certain stock or another asset at a set price at any time within a specified period
  11. Futures contract
    An agreement to buy or sell a commodity at a price stated in the agreement on a specified future date

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