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29 Essential Stock Market Phrases

Stock market is like a book where you should know the alphabets in the first place and then you can read the whole book. There are a lot of stock market terms. In this article a few of them are defined however you should know most of them but you can start with these listed below.

1.Annual report:

It is a company’s report including different information such as company strategies and cash flows etc. the report is to make an impression on people. When they read that they can decide to invest in it or not.

2.Arbitrage:

When a stock price is different in tow stock markets. An investor can buy it at a lower price in the first stock market and then sell it at a higher price in the second stock market. It is called arbitrage.

3.Bear market:

It is when the market experiences a downward trend or it is a period when market prices fall.

4.Beta:

A measurement of the relationship between a stock price and the whole market’s movements.

5.Bid:

It is the price which a trader is willing to buy shares at.

6.Broker:

A person who buys and sells for you and takes fees for that.

7.Bull market:

It is the opposite of a bear market. It is when market prices rise and when it becomes bullish the charts become green.

8.Close:

Close is the time when stock markets are closed for trading.

9.Day trading:

Buying and selling at the same day before the close of the market is called day trading.

10.Dividend:

A payment which a company pays to its shareholders is dividend. Usually it is paid quarterly to distribute company profits.

11.EPS:

Stands for earning-per-share which is a company’s earning per share.

12.ETF:

Exchangeable trading funds known as ETF are like mutual funds but can be sold and bought like stocks.

13.Exchange:

It is a place where different investments are traded.

14.Fundamental analysis:

It is a method to measure a security’s intrinsic value. Public data is used in this method.

15.Fund:

It is a collective investment. Funds usually consist of stocks and other assets.

16.High:

It is a milestone when a stock reaches a higher price than previous.

17.Index:

It is a benchmark which is used by traders.

18.Initial public offering(IPO):

It happens when a private company wants to enter the stock market for the first time to raise money.

19.Leverage:

When an investor borrows money and buys investment with that money, it is called margin investment or leveraged investment.

20.Liquidity:

It shows how quickly a stock can be bought or sold.

21.Margin:

Margin is like a loan. A person can take money from a broker to purchase in market. Margin is the difference between the amount of the loan and the price of the securities.

22.Open:

The time the stock market opens in a day also is when investors can begin trading on an exchange.

23.Portfolio:

It is all the investment that an investor has.

24.Proffered shares:

They are company’s shares which are dividend to investors mostly before the common stock divide.

25.Rally:

A rapid increase in an individual stock price or the general price level of the market is called rally.

26.Share market:

It is a place where shares of a company are bought or sold. Stock market, for example, is a share market.

27.Symbol:

A one to four-character name which consists of the root of a stock name and represents a company on a stock exchange.

28.Technical analysis:

It is a tool to forecast market or stock future movements. Charts and diagrams are used in this type of analysis. It is used to detect the good time for buying and selling in exchange.

29.Volume:

It shows how many shares have been bought and sold in a specific period of time or during the trading day.

The Bottom line

It is recommended to get professional in stock terms and then to study more about this market. You can use online courses on the internet or attend trading classes near you. you can practice before you enter the stock market. The point is to begin investing with knowledge and power.

 

Source: stockstotarde.com

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