Financial Vocabulary

#161

Value stock

Example sentences

1. He bought a value stock at a low price.
2. A value stock may trade below its estimated worth.
3. The fund looks for each strong value stock.

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#162

Dividend stock

Example sentences

1. She owns a dividend stock that pays every quarter.
2. A dividend stock can provide regular income.
3. The investor chose the dividend stock for retirement.

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#163

Blue-chip stock

Example sentences

1. He invested in a blue-chip stock from a large company.
2. A blue-chip stock often has a long business history.
3. The fund holds several blue-chip stock investments.

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#164

Penny stock

Example sentences

1. The penny stock traded for less than $1.
2. A penny stock can change price very quickly.
3. She avoided the penny stock because of its high risk.

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#165

Initial public offering

Example sentences

1. The company sold shares in an initial public offering.
2. Many investors joined the initial public offering.
3. The initial public offering raised money for expansion.

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#166

Secondary offering

Example sentences

1. The company raised more money through a secondary offering.
2. A secondary offering added new shares to the market.
3. The share price fell after the secondary offering was announced.

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#167

Stock exchange

Example sentences

1. The company is listed on a major stock exchange.
2. Buyers and sellers trade shares on a stock exchange.
3. The stock exchange closed for a public holiday.

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#168

Broker

Example sentences

1. She used a broker to buy shares.
2. The broker charged a small trading fee.
3. A broker connects investors with the market.

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#169

Dealer

Example sentences

1. The dealer bought bonds for its own account.
2. A dealer may sell securities directly to customers.
3. The bank acts as a dealer in the bond market.

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#170

Bid price

Example sentences

1. The highest bid price was $24.90.
2. The bid price shows what a buyer will pay.
3. She checked the bid price before selling.

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#171

Ask price

Example sentences

1. The ask price was $25.10 per share.
2. The ask price shows what a seller wants.
3. He placed an order below the current ask price.

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#172

Bid-ask spread

Example sentences

1. The stock has a narrow bid-ask spread.
2. A wide bid-ask spread can increase trading costs.
3. The trader checked the bid-ask spread before buying.

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#173

Market order

Example sentences

1. She used a market order to buy immediately.
2. A market order usually fills at the best available price.
3. The fast-moving price changed before the market order finished.

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#174

Limit order

Example sentences

1. He placed a limit order at $30.
2. The limit order will not buy above his chosen price.
3. Her limit order remained open all day.

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#175

Stop order

Example sentences

1. She set a stop order to limit her loss.
2. The stop order became active when the price reached $20.
3. A stop order can help manage trading risk.

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#176

Bond

Example sentences

1. The company sold a bond to borrow money.
2. The bond pays interest every six months.
3. He added a bond to make his portfolio more stable.

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#177

Face value

Example sentences

1. The bond has a face value of $1,000.
2. The issuer repays the face value at maturity.
3. The bond traded below its face value.

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#178

Par value

Example sentences

1. The bond's par value is $1,000.
2. The company issued the shares at par value.
3. At maturity, the investor receives the bond's par value.

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#179

Coupon

Example sentences

1. The bond pays a $50 coupon each year.
2. The investor received the coupon in June.
3. A zero-coupon bond does not make a regular coupon payment.

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#180

Coupon rate

Example sentences

1. The bond has a coupon rate of 5%.
2. A higher coupon rate gives a larger interest payment.
3. The coupon rate stays fixed on this bond.

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