Define each of the following terms. Use footnotes to indicate the source of the definition—see term number 2. I expect that you will be able to define each of the terms used in your definitions so don’t just copy definitions without understanding the meaning of the term.
Glossary of Investment Terms 1. Bear Market a. A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism. a 2. Blue chip stock b. A blue chip stock is a stock of a large company that is expected to be a safe investment and will often be a dividend paying stock. 3. Bonds c. A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. b 4. Bull Market d. A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gain). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery. c 5. Buying on the margin e. The purchase of an asset by paying the margin and borrowing the balance from a bank or broker. Buying on margin refers to the initial or down payment made to the broker for the asset being purchased. d 6. Buying short f. Purchasing securities in order to close an open short position. This is done by buying the same type and number of securities that were sold short. e 7. Capital Gains g. A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realized on the disposition exceeds the purchase price. f 8. Dividends h. Dividends are payments made by a corporation to its shareholder members. It is the