AI For Trading:Terminology Recap (2)
术语回顾，Here's a summary of the terms you just learned:
Stock: An asset that represents ownership in a company. A claim on part of a corporration's assets and earnings. There are two main types, common and preferred.
Share: A single share represents partial ownership of a company relative to the total number of shares in existence.
Common Stock: One main type of stock; entitles the owner to receive dividends and to vote at shareholder meetings.
Preferred Stock: The other main type of stock; generally does not entail voting rights, but entitles the owner to a higher claim on the assets and earnings of a company.
A partial distribution of a company's profits to shareholders.
Capital Gains: Profits that result from the sale of an asset at a price higher than the purchase price.
Security: A tradable financial asset.
Debt Security: Money that is owed and must be repaid, like government or corporate bonds, or certificates of deposit. Also called fixed-income securities.
Derivative Security: A financial instrument whereby its value is derived from other assets.
Equity: The value of an owned asset minus the amount of all debts on that asset.
Equity Security: A security that represents fractional ownership in an entity, such as stock.
Option Contract: A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or by a specified date
Futures Contract: A contract that obligates the buyer to buy or the seller to sell an asset at a predetermined price at a specified time in the future