Board of directors
The board of directors is an elected group of individuals with the role of representing stockholders in company decisions.

Capital Gain/Loss
A capital gain/loss is the difference between what you buy and sell a stock for. For example, if you bought $100 of stock today and then sold it for $150 in ten years, your capital gain would be $50, since you made $50 on your investment. Likewise, if you purchase a stock for $100 and sell it for $50 ten years later, your capital loss is $50, since you sold it for less than you purchased it for.

Clearinghouse
An institution that acts as the intermediary between brokerage firms, exchanges, and other clearing corporations for settling trades and delivering securities.

Dividend
A dividend is a way to share in the profits of the companies that you own stock in. Dividends are issued as a fixed payment per share of stock to the owner of the stock. For example, if you own five shares of ABC stock, and ABC company declares a $.05 dividend, you will receive $0.25 in dividends ($0.05 x 5 shares). Dividends are often issued by more mature companies and can be delivered to investors sporadically.

Earnings report
An earnings report is a report created by publicly-traded companies about their financial performance. Earnings reports are often an important driver of stock price changes. A positive earnings report may result in higher demand for the stock, and in turn, higher stock prices. A negative earnings report (or one that does not live up to expectations) may drive the stock price down.

Exchange-Traded Funds (ETFs)
Exchange-Traded Funds (or ETFs) are an investment fund that has stocks, bonds, or other assets that are traded on a stock exchange.

Equity
Equity is ownership. When you own a part or all of something, you have equity in it. Companies issue shares of stock as a way to raise capital. When someone invests by buying shares in a company, they become a partial owner. When they become a partial owner, they have equity in the company.

Ex-dividend date
The date a stock begins to trade without the new owner receiving the dividend.

Fractional share
A fractional share of stock is part of a full share of stock. Imagine you take a $100 share of stock and split it into 50 pieces. You can now buy one of those pieces (a fractional share) for $2 and become an investor without paying to buy a full share of stock.

Investing
Investing is the act of using money to buy something with the hope that it will increase in value, and can be sold  for more money in the future. There are many things we can invest in: stocks, bonds, real estate, rare record covers etc . These are all things you buy in the hope they will become worth more in the future so you can sell them for a profit. Investments can also become worthless, which means you may only be able to sell them for less than you bought them for.

Market Value
The most recently-quoted price for a stock.

Portfolio
In investing terms, your portfolio is all the various stocks, bonds, or other investments you own. If you own stock in 20 different companies, those 20 companies make up your investment portfolio.

Proxy Voting
Proxy voting is a common way for the owners of a company’s stock to vote in annual shareholders meetings. When shareholders vote by proxy rather than attending the annual meeting in person, they designate someone to represent their vote in the company matters being voted on. This designated person casts a vote in line with what is indicated on the proxy ballot, giving shareholders the ability to vote in shareholder meetings without being physically present. The number of shares held typically equates to the number of votes allowed.

Publicly-Traded Company
Publicly-traded companies are those either partially or completely owned by the public. A publicly-traded company is created when a private company goes public, called an initial public offering (IPO). Going public means the company is offering small pieces of ownership that can be purchased by the general public, making those purchasers partial owners in the company.

Rate of Return
The rate of return is the amount the price of stock changes over a set period of time. For example, you may hear that a stock price increased by 1.5% on a specific day. The daily rate of return for this stock is 1.5%. Rates of return may also be discussed in any amount of time, such as monthly, annually, 10 years, or even 50 years. This refers to how much has the stock price changed over the designated period of time and can be either a positive or negative rate of return.

Settlement Date
The date that a trade is settled. It’s the date that sellers are expected to sell the security and buyers are expected to buy the security. The standard settlement date for stocks is two business days after the trade date (T+ 2 days). For example, if you initiate a stock sell on a Friday, it should settle by the following Tuesday. Keep in mind that holidays may affect how long it takes for stock to settle.

Share
A share is a specific term for ownership of stock in a specific company.

Stock Exchange
A stock exchange is a place (physical or electronic) that facilitates the trading of stocks. Those wishing to buy and sell stocks are matched together on an exchange where they can trade ownership of the stock. For example, if you place an order to purchase $100 of stock, your “buy” order is taken to an exchange and matched up with a “sell” order for that same stock, completing a stock exchange.

Stock
A stock is a general term for a piece of ownership in a company.