Keep this list handy when screening for potential trades on stockstotrade. Bear market a bear market is a prolonged period of falling stock prices, usually marked by a decline of 20% or more. Get out of a position or sell the shares youve purchased. In the stock market, an agent refers to a brokerage firm which buys or sells shares on behalf of the investor. After reading the dialogue, fill in the blanks using the key terms provided to test your knowledge of some common stock market terms. Stock market terminology as with anything else, mastering the stock market means mastering the lingo and for traders, that can be a bit confusing at first. A stock that has been removed from, and is no longer traded on, the new york stock exchange, the nasdaq stock market, or the american stock exchange. Over the last few decades, the average persons interest in the stock market has grown exponentially.
A rise in the price of a security or in the value of one currency in terms of another. An investor usually chooses abandonment when the option is out of themoney on the expiration date. This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own stocks. Over time, the increased usage of the stocks and stock exchanges created a unique vocabulary. Welcome to firstrades stock trading terms glossary. This video will give you the basics in important stock market terms you need to know to trade the markets.
This article gives to the point, elementary meanings of stock market terms. The all ords was made up of the weighted in terms of market capitalization share prices of approximately 500 of the largest australian companies. A stock market may delist a company if it merges with another company, files for bankruptcy, moves from one stock market to another, or fails to meet a stock markets minimum standards. Jun 01, 2019 knowing about the above share market terminologies will make you a better trader. For example, an employee receiving a raise may reply with the words cool beans, upon receiving the news. An important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets. Investmentstock market vocabulary learn english today. A slang term used to refer to something favorable that has happened in business. Get familiar with the basic terminology of the stock market at angel broking website. Balanced fund mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. It is a measurement of relationship between stock price of any particular stock and the movement of whole market.
The glossary of financial and investing terms allows you search by term or. Basic investment terms creative capital management. Broker a person who buys or sells an investment for you in exchange for a fee a commission. Stock market glossary stock trading terms dictionary. Day trading terminology is something every trader will need to understand. Stock terms glossary of stock market terms and definitions.
Market risk risk experienced from daily fluctuations in the price of a security. What was once a toy of the rich has now turned into the vehicle of choice for growing wealth. This article attempts to create a list of stock terms, that will not require you to go and search elsewhere. Stock market terms, investment terminology and definitions. A share of ownership in the assets and earnings of a business. Margin collected by the stock exchange from the members having unduly large outstanding position. Flotation the process of a privatelyowned company becoming a listed company. Dec 30, 2015 market cap the total dollar value of a company based on the stocks price and outstanding shares. Today, to understand the workings of the financial markets, it is important that we have a good knowledge of these basic stock. A bull market is a prolonged period where investment prices rise faster than their historical average, as a result of economic recovery, boom, or investor psychology. However, it differs from the stock exchange in that it deals with the assets themselves i. Heres a glossary of stock market terms, suitable for beginners just learning how to pick stocks. Bid this is the highest price at which an investor is willing to buy a stock.
A method of recording a companys financial activity and arranging the information in reports that make the information understandable. The amount a company owes to suppliers for products and services bought. To understand the stock market, lets listen in on one familys breakfast conversation. It is the sensitivity of the movement of the past share price of a stock to the movement of the market as a whole. Day trading the practice of buying and selling within the same trading day, before the close of the markets on. From 401ks to zerosum investments, the glossary is an evolving reference for investors and. Stock market terms for dummies by billie nordmeyer mba, ma initial public offering, abnormal return and liquidity are just a few of the terms you will come across when you invest in the stock market. Az of trading slang expressions and investment terms.
Investment is generally based on stock price rather than on an evaluation of the company. With this handy guide, market terms will start making way more sense. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice. For example, if a stock in your portfolio falls in price. Additionally, consider practicing your investing skills with our list of stock market game for kids. Speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets.
The stock market is a crazy place, where trillions of dollars change hands every day. Finding an integrated glossary of stock market terms and definitions is only possible in the stock market section of a financial dictionary. Explaining stock market terminology in the following conversation between two work colleagues, peter explains to juan how the stock market works and the meaning of some different words and terms used when talking about it. The may 6, 2010, flash crash was a trilliondollar stock market crash on wall street, which started at 2. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Stock market terms speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. Stock market terms are discussed in this video because you need to learn them as an investor or trader. Knowing about the above share market terminologies will make you a better trader. Learn the stock market terms and vocabulary with our glossary of terms. Below is either a list of themes or a list of 8 puzzles for a specific theme. A shortterm credit investment created by a nonfinancial firm and guaranteed by a bank to make.
Investor who holds stocks and securities for a short time minutes, hours or days with the objective of making profit from shortterm gains in the market. Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market operations. Then well jump into the more advanced terms that you may still have questions about. The amount customers owe a company for its products or services. Thank you for sharing our vocabulary content with others. Nov 14, 2018 stock market terms are discussed in this video because you need to learn them as an investor or trader.
Mkt market order 32 types of orders with an expiry date 32 short selling 33 how short selling works 33 the risks in short selling 34 the trading sequence 35 suspension of trading 35 practical terms 41 market capitalization market cap 41 yield 41 shareholders equity net assets 41 stock splits 42. We created this stock market vocabulary page to help people learning english and even those fluent in english to better understand some of the most popular stock market terms. Gorilla trades is not only an online stock picking service, but it also provides subscribers with educational resources and information to help them decide how and when to buy and sell stocks, how to limit losses, and how to increase returns. Heres a glossary of 40 key stock trading terms for beginners. A comprehensive glossary is a valuable reference tool that can be used when attending seminars, watching or listening to financial programs and reading financial market material. To separate wise investments from inappropriate ones and develop your stockinvesting smarts, you should understand these and other terms related. The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and definitions related to the. A general term used to describe all transactions involving the buying and selling of stock shares issued by a company. Similar to the stock exchange where forces of supply and demand meet and prices are determined accordingly. Marketweighted index an index calculated using the price of each stock multiplied by the number of shares held.
Learn what an asset class is and what forex, futures, and options are and how they work. Outstanding shares the total amount of shares issued, including both the float and institutional ownership. The price is determined by the policies of the tsx company manual or tsx venture. Auction market a market where buyers and sellers enter bids and offers simultaneously, such as the new york stock exchange. Stock market glossary of terms learning how and when to buy and sell stocks takes time and information. In the stock market, an agent refers to a brokerage firm which buys or. Bull market this is when the stock market as a whole is in a prolonged period of increasing stock prices. Financial assets such as fixed deposits with banks, small. Established by australian stock exchange asx at 500 points in january 1980, it was used as the predominant measure of the overall performance of the australian sharemarket.
Here is a pdf study material including the vocab asked in the exams over several years. A recession is defined as two consecutive quarters when a country sees negative economic activity. A market in which stock prices are falling consistently. Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions. Stocks with betas greater than 1 tend to amplify the movement of the market. So, check out this stock market glossary for some stock terms and. Younger students can take a look at the money games for kids. The forbes financial glossary defines hundreds of finance terms to help you decode the puzzle. Understanding the stock market can be a daunting task for any new investor.
May 15, 2018 this video will give you the basics in important stock market terms you need to know to trade the markets. Know the terms of share market to be a better investor. Click on a theme or puzzle that will take you to an interactive activity. This glossary of terms has been produced to aid beginning traders in the challenging task of becoming familiar with new vocabulary and terminology. Choose from 500 different sets of stock market terms flashcards on quizlet. Learn what an asset class is and what forex, futures, and. Market order an order to be executed immediately upon being entered at the best price possible. Day trading the practice of buying and selling within the same trading day, before the close of the markets on that day. The most comprehensive investing glossary on the web. Auction treasury the issuance of new treasury bills, notes, and bonds at stated intervals by the federal reserve. Given below is a basic glossary of terms that you must know as an investor. It takes time as well as dedication to grasp the intricacies of securities trading, but when you do, the stock trading terminologies above will become a part of your daily vocabulary.
Before you go out into too many technicalities, here is a little glossary with few key terminologies that you should know before you start investing. Ill also provide brief definitions of each to help you. The higher a pe ratio is, the more there is expectations for higher earnings. It is a standard measure of risk for an individual stock. These are just a few of the vocabulary terms from the stock market unit.
A benchmark index the sensex, for instance is taken as the proxy for the market. The stock market vocabulary is effective for all banking exams and specifically for rbi exams. Learn stock market terms with free interactive flashcards. Following is a glossary of stock market terms all or none or aon. Were going to start with basic terms that most day traders will already be familiar with. Expanding your stock market vocabulary will enable you to be a better investor, so that you can trade successfully. The companies selected typically are in different industries and different geographic regions. Here are some stock market terms that you must know if you want to be a profitable trader. A comprehensive glossary is a valuable reference tool that can be used when attending seminars, watching or listening. Glossary of commonly used stock market terminologies.
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