COMMERCE 4FP3 Chapter Notes - Chapter 11: Dow Jones Industrial Average, Nyse Composite, Nasdaq Composite

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4FP3
• Professor: Jordan Fortino

Document Summary

Index: a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market: s&p/tsx composite index, dow jones industrial average, nyse composite index, nasdaq composite index, standard & poor"s 500 stock index. Preferred stocks: receive cash dividends before common stock holders are paid any cash dividends. The divided amount is either a stated amount of money for each share of preferred stock, or a percentage of the par value. Stock valuation: important to understand different approaches used by experts to analyse stocks. Fundamental analysis: a way to value stocks by looking at micro and macro factors that might influence the economic value of stocks. Technical analysis: idea that changes in investor sentiment are responsible for changes in trends, and that the value of a stock can be predicted by extrapolating price from historical patterns. Efficient market hypothesis: states that future prices cannot be predicted from past trends and patterns.