Were going to start with basic terms that most day traders will already be familiar with. After hours tradingtrading on normal currencies after normal trading hours. Quite simply it means you try to buy something cheap in one place, to make a profit selling it somewhere else. Welcome to the comprehensive list of stock market terms and their definitions, designed for investors at all levels. Day trading terminology is something every trader will need to understand. The final price at which the stock is traded on a given particular trading day. The most used stock market terms include bear market, bull market, blue chip stocks, earnings per. Glossary of commonly used stock market terminologies. 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. 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. Stock market terms, investment terminology and definitions. A type of stock order that provides instruction to only execute at or under a purchase price or at or above a sale price. Bull market this is when the stock market as a whole is in a prolonged period of increasing stock prices.
It is a measurement of relationship between stock price of any particular stock and the movement of whole market. Whether you are a beginner at investing or seasoned investor being familiar the basic term of the stock market is essential. 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. Glossary of commonly used stock market terminologies arbitrage. In this article we will go over the basic stock market terms. For those that would rather not look at our epic infographic, the 40 trading terms are also listed. 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 buying in, so that the securities can be bought from the market and delivered to him.
The most important institutions of this market are central banks, commer. In a bear market, investors expect stock prices to fall. The guide is an important resource that will help to create a much greater understanding of. Broker a person who buys or sells an investment for you in exchange for a fee a commission. Common terminologies used in forex markets financial markets have their own terminologies. When combined with the bid price information, it forms the basis of a stock quote. Countercyclical stock stock from a company which gives consistent records of returns even when the economy is suffering because their product is always in demand. Stock overhang is a phrase used to describe a sizeable block of shares which, if it were to be released in the market in one go, would flood it, and so depress prices. Heres a glossary of 40 key stock trading terms for beginners. Experts and novice often use these terms to talk about strategies, charts, indices and other elements of the stock market.
Stock splitting a stock split increases the number of a corporations issued shares by dividing each existing share. With this handy guide, market terms will start making way more sense. The forex market comes with its very own set of terms and jargon. The key to protecting yourself in the stock market is to understand where you are putting your money. Day trading the practice of buying and selling within the same trading day, before the close of the markets on that day. By leaving out all the confusing wall street jargon and explaining things in. Jun 01, 2019 stock market terminologies are industryspecific terms which are frequently used when we read or talk about the stock market. The forex market has a number of terms which it shares with other financial markets but which mean different things in the forex market. Market capitalization is a measurement used to classify a companys size, which can be categorized between small, medium or large cap, and is based on the market value of the total shares outstanding.
Below is an elementary guide of basic terms which are frequently used in the stock market. Understanding the stock market can be a daunting task for any new investor. Nov 21, 2017 although there are thousands of terminologies that a stock market investortrader should know, however, they are a handful of them which are repeatedly used. The opposite of a bull market and marked by pessimism and low expectations. Keep this list handy when screening for potential trades on stockstotrade.
Stock terms glossary of stock market terms and definitions. 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. Then well jump into the more advanced terms that you may still have questions about. It is made available with our compliments, to members of the. This basic domain knowledge of these terms is really important if you want to enter and succeed in the share market.
It is for this reason that weve created this tutorial. Well start by explaining what a stock is and the different types of stock, and then well talk about how they are. Common share market terminology for beginners part 1. Ive created the easy to follow investing for beginners guide to simplify the learning process for entering the stock market. In a thin market, price fluctuations between transactions are usually larger than when the market is liquid. Your pocket guide to understanding financial terms. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice. It is an index that represents the direction of the companies that are traded on the bombay stock exchange. Blockage discount an amount or percentage deducted from the current market price of a publicly traded stock to reflect the decrease in the per share value of a block of stock that is of a size that could not be sold in a reasonable period of time given normal trading volume. The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit. Call up a stock quote and you get the current market share price of the company the amount youd pay if you bought shares or the.
Know the terms of share market to be a better investor. Also included here explanation of stock market terms and jargon used by people involved in trading stocks and used by. In most cases, the banking system handles these transactions. 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. Advanced computerized execution system aces this is the service offered by nasdaq to brokerdealers to automatically perform internal transactions and process the records appropriately. 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. Bear market this is trading talk for the stock market being in a down trend, or a period of falling stock prices. The glossary of financial and investing terms allows you search by term or. A bull market is when the share prices are rising and the public is optimistic that the share price will continue to rise. In this guide, the investor will find explanations of the most common and frequently used investment terms. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book.
Before you drift into the many debates that the investing pundits are weighing in on, perhaps the most proactive step for a beginner is to simply learn to talk the same language as the pros. The public is fearful and thinks that the market will continue to fall and hence, selling increases in this market. Get familiar with the basic terminology of the stock market at angel broking website. Dec 07, 2017 moneytree channel is created for educational purpose. Let us go through a few of these terms used in routine stock market parlance. Likewise, the seller writer of a call option is obligated to sell the stock at the strike price if the option is exercised. This article attempts to create a list of stock terms, that will not require you to go and search elsewhere. Term used to describe an option or a warrant with an exercise price equal to the current market price.
Beta a measurement of the relationship between the price of a stock and the movement of the whole market. You can always change your preferences or unsubscribe and your contact information is covered by. Sensex it is an index that represents the direction of the companies that are traded on the bombay stock exchange, bse. If you want to buy good book to learn stock market. 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. The most comprehensive investing glossary on the web. A comprehensive glossary is a valuable reference tool that can be used. Stock from a company which has a low market price considering historical earning records and value of current assets. We give complete information to small retail investor in india share market so that they know how to take entryexit in shares listed in nifty. 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. The lowest price at which someone is willing to sell the security.
In the us, the colonial government used to sell bonds in order to finance the war. The phrase may apply to a single security or to the entire stock market. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. I would like to receive nasdaq communications related to products, industry news and events. So, before you go any deeper into learning how to trade the fx market, its important you understand some of the basic forex terminology that you will encounter on your trading journey. This is a term used to describe the scenario of the market. Forex trading terminology learn to trade the market. It is the highest price a buyer is willing to pay for a stock. 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. Day trading glossary terminology used in trading and finance. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock. A call option gives the buyer the right to buy 100 shares at a fixed price strike price before a specified date expiration date. Expanding your stock market vocabulary will enable you to be a better investor, so that you can trade successfully.
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