Stock market is an organized market for the purchase and sale of industrial and financial security. Are you looking to invest more in the markets and dont know where to start. As with anything else, mastering the stock market means mastering the lingo and for traders, that can be a bit confusing at first. It is a valueweighted or capitalizationweighted average of stock prices of. Beta a measurement of the relationship between the price of a stock and the movement of the whole. Common stockholders assume the greater risk, but generally exercise the greater control and may gain the greater award in the form of dividends and capital appreciation. Beta a measurement of the relationship between the price of a stock. If you want to buy good book to learn stock market. Before you go out into too many technicalities, here is a little glossary with few key terminologies that you should know.
Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions. Stock terms glossary of stock market terms and definitions. Wall street slang and investing terms celebrateboston. Use these common investing terms and definitions to further your knowledge and grow wealth.
A stock s price is dependent on the company, which in turn is dependent on its environment, which includes its customer base, its industry, the general economy, and the political climate. Heres a glossary of 40 key stock trading terms for beginners. It is one of the important constituent of capital market. In this guide, the investor will find explanations of the most common and frequently used investment terms.
For those that would rather not look at our epic infographic, the 40 trading terms are also listed. It is made available with our compliments, to members of the. Other commonly used stock market terms include leverage, margin, and initial public offering. It is an index that represents the direction of the companies that are traded on the bombay stock exchange. Kingdom of saudi arabia capital market authority guide for investment terminology. A market order is an order to buy or sell a stock at the. In this article we will go over the basic stock market terms. With this handy guide, market terms will start making way more sense. A general term used to describe all transactions involving the buying and selling of stock shares issued by a. Stock market terminologies are industryspecific terms which are frequently used when we read or talk about the stock market.
The companies selected typically are in different industries and different geographic regions. The two most common order types are the market order and the limit order. After a large selloff or drop in the market, a slang term for picking oversold stocks. Balanced fund mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. Over the last few decades, the average persons interest in the stock market has grown exponentially.
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. These are just a few of the vocabulary terms from the stock market unit. The stock market refers to the collection of markets and exchanges where the issuing and trading of equities stocks of publicly held companies, bonds and other sorts of. A market order is an order to buy or sell a stock at the best available price. Day trading terminology is something every trader will need to understand. Complete the following table by writing down the definition of the terms listed on the left. What was once a toy of the rich has now turned into the. Stock market terms, investment terminology and definitions. Term used to describe an option or a warrant with an exercise price equal to the current market price of the underlying asset auction when a seller is not in a position to deliver the securities he has sold, the buyer sends in his applications for buyingin, so that the securities can be bought from the market and delivered to him. Then well jump into the more advanced terms that you may still have questions about. Stock market is also known as stock exchange or share market in all over the world.
This post is an attempt to explain common doubts regarding share and stock market. Finding an integrated glossary of stock market terms and definitions is only possible in the stock market section of a financial dictionary. Basic investment terms creative capital management. To separate wise investments from inappropriate ones and develop your stock investing smarts, you should understand these and other terms related to the trading arena. A foolish method of investing, when you buy a stock and completely forget about it indefinitely. Glossary of commonly used stock market terminologies arbitrage the business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in the other or vice versa. Glossary of commonly used stock market terminologies. 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 process of granting permission to the securities of a company to be listed in a stock exchange and to provide trading facilities for the securities in the market. Over the long term, common stock, by means of capital growth, yields higher.
This type of order guarantees that the order will be executed, but does not guarantee the execution price. Chapter 7 stocks and stock valuation characteristics of common stock the market price vs. Most of the time, the book value is used as part of an evaluative measure, rather than being truly related to a companys. This post, share and stock market basics is a continuation of our article series on financial market. Let us go through a few of these terms used in routine stock market parlance. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice. This article attempts to create a list of stock terms, that will not require you to go and search elsewhere. It is a widely watched stock market index in australia. Definitions of terms used on stock tables directions. Although there are thousands of terminologies that a stock market investortrader should know, however, they are a handful of them which are repeatedly used. We deal terms like equity, stock exchange, bull, bear, primary market, secondary market, depository, depository participant etc here. The most common types of orders are market orders, limit orders, and stoploss orders.
Definitely, investopedia was my favorite website to learn the meaning of those words. Companies listed on tsx venture exchange that meet higher asset. Below is an elementary guide of basic terms which are frequently used in the stock market. Your common sense and logic can be just as important in choosing a good stock. Know the terms of share market to be a better investor. Quite simply it means you try to buy something cheap in one place, to make a profit selling it somewhere else. 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. It is an order to buy or sell immediately at the current price. In the us, the colonial government used to sell bonds in order to finance the war. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. 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. Were going to start with basic terms that most day traders will already be familiar with. The following are general descriptions of some of the common order types and trading. This is trading talk for the stock market being in a down trend, or a period of falling stock prices.
Otc is a term that pharmacists use to discuss medicines that are lowrisk, lowcost, and nonprescription. Understanding the stock market can be a daunting task for any new investor. 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. The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and. It is the measure of return on investments in terms of percentage. When its used as one of the most common stock market terms, otc refers to a decentralized stock exchange that is generally conducted via phone or email.
Whether you are a beginner at investing or seasoned investor being familiar the basic term of the stock market is essential. The terms common stock and capital stock are often used interchangeably when the company has no preferred stock. Some common time frames are 50day and 200day moving averages. Get familiar with the basic terminology of the stock market at angel broking website. Typically, if you are going to buy a stock, then you will pay a price at or near the. Experts and novice often use these terms to talk about strategies, charts, indices and other elements of the stock market.
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