Word #1 Stocks- A share of profits from a company owned by a shareholder. Example: Juan bought 85 shares of GM, and received a portion of the companies profits.
Sentence: In the Investopedia game FE Spring 11, I have purchased stocks from 8 companies.
#2 Bonds- Where an investor loans money to a company or corporation, and is paid back after a certain amount of time with interest. Example: Cody issued a bond to Anheuser Busch, which was paid back with interest, giving him more money than the original loan.
Sentence: After I established a savings bond, I was paid back with interest over a given amount of time.
#3 Dow Jones- 30 blue chip stocks showing a summary of the overall stock market.
Example: Rachel was watching the Dow Jones ticker to make sure her stocks in Microsoft were not losing value.
Sentence: My stocks in the Stock Market Game FE Spring 11 are affected by the Dow Jones because a few companies are one of the 30 large companies it is made up of.
#4 Equity- On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses) Example: The equity of the comapny was recorded on the balance sheet, made up of the shareholders.
Transactions- I bought 50 stocks Marathon Oil, because it had rising value in the 52 week cycle, but then it had a major drop during the month of June, but then leveled out at the low point. Their high was $32.95 per share, and their low was $23.37.
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