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Appendix A. Glossary - Pg. 107

Glossary 107 speculate To take greater risks when investing in order to make larger gains. speculative stocks Stocks that have little or no real value other than unsupported potential (for example, long shots). Standard and Poor's 500 An index composed of the 500 largest stocks trading on the NYSE and the NASDAQ. stock A representation of partial ownership of a company. A stock can be either a physical document or a computerized account. stock market Centralized physical locations or computer networks over which stock is traded. stock name An entry in the daily stock table, usually in the form of abbreviations and acronyms. stock symbol An entry in the daily stock tables of the symbols used to identify a stock, composed of one- to four-letter combinations. stop orders Instructions to a broker to sell stock at a price lower than the current market value or buy it at a price higher than the current market value. subscription right An option granted to current shareholders to buy future-issued stock at a discount price. tax-free bond A bond issued by state or local government to investors for raising capital or cash of which interest is exempt from municipal, state, and/or federal taxes.