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.
When a investor invest money and gets share of a particular company or position in that company.
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 is the lowest price at which a seller will sell his stock.
Bid price is what you want to buy a stock. Bid price is always lower than the ask price.
The difference between the ask price and bid price is called Spread.
Bull market is a condition of market when investors expect stock prices will rise.
Bear market is opposite condition of bull market when investors expect stock prices will fall for a sustained period of time.
Limit order is a type of order which executes when a stock price hits a placed price for buy and sell.
Market order is a type of order which executes as quickly as possible on best available current market price.
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 is the upward and downward trend of a stock price.
Long position is refers to stock buy in expectation of increasing in it value
When a investor buy additional stock of previously initiated investment when price goes down to decrease average price of stocks.
This is what market thinks a company’s value is.
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 refers to Initial Public Offering that happens when a private company offers its shares to public in stock issuance for the first time.
When a company increases the number of shares after its already made IPO.
Dividend is what company paid to its shareholders from earnings.
Broker is a person who buy or sell stocks on behalf of investor.
Exchange is a place where all stock trading happens.
Is a collection of stocks a investor owns.
Margin account is where from a investor borrow money from broker to buy stocks.
A group of stocks which comes from same sector.
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.