| dividend growth model | A model that determines the current price of a stock as its dividend next period divided by the discount rate less the dividend growth rate.
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| dividend yield | A stock's expected cash dividend divided by its current price.
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| capital gains yield | The dividend growth rate, or the rate at which the value of an investment grows.
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| common stock | Equity without priority for dividends or in bankruptcy.
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| cumulative voting | A procedure in which a shareholder may cast all votes for one member of the board of directors.
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| straight voting | A procedure in which a shareholder may cast all votes for each member of the board of directors.
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| proxy | A grant of authority by a shareholder allowing another individual to vote his/her shares.
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| dividends | Payments by a corporation to shareholders, made in either cash or stock.
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| preferred stock | Stock with dividend priority over common stock, normally with a fixed dividend rate, sometimes without voting rights.
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| primary market | The market in which new securities are originally sold to investors.
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| secondary market | The market in which previously issued securities are traded among investors.
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| dealer | An agent who buys and sells securities from inventory.
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| broker | An agent who arranges security transactions among investors.
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| member | The owner of a seat on the NYSE.
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| commission brokers | NYSE members who execute customer orders to buy and sell stock transmitted to the exchange floor.
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| specialist | A NYSE member acting as a dealer in a small number of securities on the exchange floor; often called a market maker.
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| floor brokers | NYSE members who execute orders for commission brokers on a fee basis; sometimes called $2 brokers.
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| SuperDOT system | An electronic NYSE system allowing orders to be transmitted directly to the specialist.
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| floor traders | NYSE members who trade for their own accounts, trying to anticipate temporary price fluctuations.
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| order flow | The flow of customer orders to buy and sell securities.
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| specialist's post | A fixed place on the exchange floor where the specialist operates.
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| over-the-counter (OTC) market | Securities market in which trading is almost exclusively done through dealers who buy and sell for their own inventories.
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| electronic communications network (ECN) | A Web site that allows investors to trade directly with each other.
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| inside quotes | Highest bid quotes and lowest ask quotes offered by dealers for a security.
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