These are 25 stock market terminology that every stock market investor should know.
What is stock market terminology?
Stock market terminology is what frequently and commonly in use terms that are habitually used to discuss share market.
Specialists and beginners all often use these terms to discuss stock market trends, graphs, files, stock prices and different contents of stock market.
Basic Stock Market Terminologies?
Following are mostly used stock market terminology and their means.
Buy
When a investor invest money and gets share of a particular company or position in that company.
Sell
When a investor meets his targeted goal of profit from his share or don’t want to loose more money and gets rid from shares.
Ask
Ask is the lowest price at which a seller will sell his stock.
Bid
Bid price is what you want to buy a stock. Bid price is always lower than the ask price.
Ask-bid Spread
The difference between the ask price and bid price is called Spread.
Bull
Bull market is a condition of market when investors expect stock prices will rise.
Bear
Bear market is opposite condition of bull market when investors expect stock prices will fall for a sustained period of time.
Limit Order
Limit order is a type of order which executes when a stock price hits a placed price for buy and sell.
Market Order
Market order is a type of order which executes as quickly as possible on best available current market price.
Day Order
When you give direction to broker to trade a stock on specific price for the day and it expires at the end of the trading day if trade not completed on your asked price.
Volatility
Volatility is the upward and downward trend of a stock price.
Going Long
Long position is refers to stock buy in expectation of increasing in it value
Averaging Down
When a investor buy additional stock of previously initiated investment when price goes down to decrease average price of stocks.
Capitalization
This is what market thinks a company’s value is.
Float
Floating stock is number of shares available to trade of a particular stock.
Authorized shares are the shares which a company is legally allowed to issue to investors.
IPO
IPO refers to Initial Public Offering that happens when a private company offers its shares to public in stock issuance for the first time.
Secondary Offering
When a company increases the number of shares after its already made IPO.
Dividend
Dividend is what company paid to its shareholders from earnings.
Broker
Broker is a person who buy or sell stocks on behalf of investor.
Exchange
Exchange is a place where all stock trading happens.
Portfolio
Is a collection of stocks a investor owns.
Margin
Margin account is where from a investor borrow money from broker to buy stocks.
Sector
A group of stocks which comes from same sector.
Stock Symbol
When a company issues its share to public marketplace it selects a symbol (arrangement of character) for its shares, related to company name. Investor and traders use this symbol to trade stocks.