A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."
What are stock terms?
Stock Terms Flashcards. A stock symbol or ticker symbol is an abbreviation of the company name to be used for purposes of trading. The highest and lowest price of the stock in the most recent 52 week period. the annual payment per share to owners of stock. Usually paid quarterly (three months).
What are trading terms?
Trading Terms. These are the standard terms and conditions which apply to the supply of any goods or services by Metcash (or its related bodies corporate) from time to time. Any update to these terms will be published on this web page and customers should check for updates on a regular basis. Trading Terms.
How to buy and sell stocks on your own?
Which is the best stock platform for beginners?
- Robinhood: Simple-to-use mobile investing on the go
- Charles Schwab: Great all-around stock broker with many investment options and investing platforms to choose from
- Acorns: Round up your purchases to invest your spare change
- Cash App Investing: Simple-to-use mobile investing and banking in one
What does the term stock market mean?
The stock market is a place where parties (both individuals and institutions) buy and sell stocks. There are several world-renowned exchanges like the New York Stock Exchange and the NASDAQ. Stocks listed on these exchanges can be bought and sold. These stocks represent shares of ownership in a company.
How do you read a stock term?
0:5913:23Stock Market Terminology for Dummies - YouTubeYouTubeStart of suggested clipEnd of suggested clipYour asset mix this is basically the balance. Between your stocks. And bonds they say depending onMoreYour asset mix this is basically the balance. Between your stocks. And bonds they say depending on your age. That's how much you should have in stocks or bonds.
What are the 4 types of stocks to consider?
4 Types of Stocks to ConsiderBlue chip stocks. These are organizations with solid foundations and decades or centuries of record. ... Growth stocks. Growth companies are in great flavor. ... Speculative stocks. These are companies with no actual fundamental logic. ... Range bound shares.
What is difference between stocks and shares?
Definition: 'Stock' represents the holder's part-ownership in one or several companies. Meanwhile, 'share' refers to a single unit of ownership in a company. For example, if X has invested in stocks, it could mean that X has a portfolio of shares across different companies.
Do penny stocks pay dividends?
Typically, penny stocks do not pay dividends since penny stock companies tend to either be small companies with little revenue or larger companies that are undergoing financial hardship.
What are the main types of stocks?
There are two main types of stocks: common stock and preferred stock.
What are the 4 types of stocks food?
There are many types of stock:White stock: A clear, pale liquid made by simmering poultry, beef, or fish bones.Brown stock: An amber liquid made by first browning/roasting poultry, beef, veal, or game bones.Fumet: A highly flavored stock made with fish bones.Court bouillon: An aromatic vegetable broth.More items...
What are the 5 classifications of stocks?
Investors love to put stocks into various categories in order to make it easier to identify them. There are probably over one dozen stock classifications but we will describe only the following five here: blue-chip, growth, income, cyclical, and interest-rate-sensitive stocks.
What are the five basic types of stock?
Different Types Of StockIncome Stocks. As its name suggests, this security generates a steady and stable income in the form of a dividend. ... Cyclical Stocks. ... Blue-Chip Stocks. ... Speculative Stocks. ... Defensive Stocks. ... Growth Stocks.
What are the terms used in the stock market?
Most people understand basic stock market terms like Bulls, Bear, Long & Short. But most do not know important terms like 10-K Report, Alpha, Bid-Ask Spread, Debt to Equity, or Fair Value. Other critical lingo includes Earnings Per Share, Margin of Safety, Discounted Cash Flow, or EBITDA. Understanding this jargon is important for your success.
What is the stock market?
The Stock Market is a general term for all trading centers (stock exchanges) that enable the exchange of shares of public companies. Today, the term Stock Market refers to all the stock exchanges in all the countries of the world. We can view all Stock Exchanges around the world as part of one giant global Stock Market.
What is common stock?
Common Stock is another term for publicly traded shares of stock. Companies list Common Stocks on exchanges. Anybody can buy Common Stock. Common Stockholders usually have voting rights in a company.
What does it mean to beat the market?
To beat the market means that your stock investments will need to outperform the underlying index of stocks. In the USA, the market to beat is generally the 8% annual return of the S&P500 index. Anyone could beat the market in a single year, but outperforming the market over the long term is the challenge.
What does a bear market show?
A Bear Market does not show the health of the overall economy. Instead, the market shows investors’ view of the economy’s health. If investors think the economy is bad, they sell, creating a Bear Market. If investors believe the economy is good, they buy, creating a Bull Market.
What does "averaging down" mean?
Averaging Down is the strategy of continuing to buy more shares of a company as the stock price is falling. This means that you are bringing your Average Cost Per Share Down. This strategy is used by long-term investors to take advantage of temporary fluctuations in stock prices to reduce their average share price and improve end profit.
What does Alpha mean in investing?
Alpha is a term used to describe the ability of a portfolio, fund, or strategy to beat the market, e.g., outperform the underlying index. If a strategy beats the market, usually the S&P500, by 2% in a year, it is awarded an Alpha of 2.
What Is the Stock Market and What Are Stock Market Terms?
Before we go too far, let’s make sure you’re clear about what the stock market is.
What does IPO stand for in stock market?
IPO stands for initial public offering. It’s when a company goes through the process of selling shares on the stock market for the first time.
What is a GTC order?
A type of stock market order to buy or sell shares that remains open until the trade is made or you cancel the order. Also known as a GTC order.
What does "offering shares for sale" mean?
When a trader offers their shares for sale at a certain price.
Why aren't shares tradeable?
Many companies will have large chunks of shares that aren’t tradeable because they’re held by company management or key investors.
What is forex short for?
Forex is short for foreign exchange. The term refers to the global trading of currencies in a way similar to the way stocks are traded.
What is market order?
Market Order. A type of stock market order that provides instruction to buy or sell as quickly as possible, at whatever price is currently available. Market orders can be expensive if there’s not enough volume being traded. If you’re going to trade penny stocks, you should almost never use a market order.
How many stocks are dividend aristocrats?
The U.S. Dividend Aristocrats are a basket of 65 stocks in the S&P 500 index. These companies have been growing their dividend per share consecutively, for a minimum of 25 years. This is easier said than done, since companies often distribute dividends quarterly.
What is the difference between GDP and market cap?
A company’s market cap is a proxy of its net worth in the eyes of public markets and changes constantly, while GDP measures the economic output of a country in a given year. But companies directly and indirectly affect the economies of countries around the world.
Is the stock market a daunting task?
Understanding the stock market can be a daunting task for any new investor.
What is runoff in stock market?
Runoff or run-off: the period at the end of a stock market trading session originally reserved for printing end-of-trading share prices and values onto ticker tape; now used to describe trades at the end of a session that may not be announced or reported until the start of the next session.
What is an IPO?
Initial public offering or IPO: a type of public offering in which shares of a company are sold to institutional investors.
What is a stub in a company?
Stub: the stock representing the remaining equity in a corporation left over after a major cash or security distribution from a buyout, a spin-out, a demerger or some other form of restructuring removes most of the company's operations from the parent corporation.
What is market trend?
Market trend: the tendency of financial markets to move in a particular direction over time.
What is bear market?
Bear market: a general decline in the stock market over a period of time. See Market trend.
What is stock market terminology?
Stock market terminologies are industry-specific stock market terms that are frequently used when we read or talk about the stock market.
What is the Stock Market?
The stock market is a type of exchange that allows traders to buy and sell stocks as well as companies to issue stocks.
What is a broker?
Broker – A broker is a person who buys or sells stocks on your behalf.
What is the second purpose of the stock market?
The second purpose that the stock market serves is to give the investors an opportunity to share in the profits of companies that are listed on the stock exchange.
What is market order?
Market Order – A market order is a type of order which executes as quickly as possible at the market price.
What does "sell" mean in stock market?
Sell – Getting rid of the shares as you have achieved your goal or want to cut down losses.
What is the stock symbol?
Stock Symbol – A one to three-character alphabet root symbol which represents a company listed on the exchange.
What is the stock market?
A stock market is a highly organised and sophisticated set-up where investors or traders acquire or surrender a piece of ownership in the company by purchasing and selling of shares, in exchange for funds. First, let us understand the key term “Shares” that form the basis of other stock market terms.
What is the stock market language?
A language is often a corridor to a new world, a new vision. Similarly, stock market terms constitute the language of the stock market universe. The stock market terms are the lexica of the financial world. These are industry-specific jargons to describe the various phenomena of the stock market. These are the terms used by amateurs as well as the bellwethers of the financial world to explain an array of products in the stock market, market patterns, investing strategies, charts, indices, trading strategies etc. The stock market terms are like a window to the securities market. The terms will help you to see and perceive the stock market through the broad lens of an investor.
What is volatility in stock market?
Volatility refers to the degree or the extent in fluctuation in the prices of the stock. Highly volatile stock witness abnormal highs and lows during the trading session, while low volatile stocks experience ups and downs to a lesser degree. Investing in highly volatile stocks can result in enormous gains or tremendous losses.
What happens when you buy a put option?
The buyer of the put option expects the price of the underlying asset to go down. If the price of the underlying asset is below the strike price, the gain is the difference between the strike price and current price of the stock, multiplied by the lot size. In case the strike price is above the stock price, the buyer loses the premium paid.
What is call option?
A call option gives the buyer the right but not the obligation to buy an underlying asset at the strike price on or before the expiry date. The buyer of a call option speculates that the market is bullish, and the prices of the underlying asset will increase. If at the expiry date, the price of the underlying asset is below the strike price, the buyer refuses to exercise his right. His loss is limited to the premium paid. If the price of the underlying asset is above the strike price, the profit is the current stock price minus the strike price, multiplied by the lot size, with the premium deducted as a cost of the call option.
What is derivative financial?
A derivative is a financial instrument that derives its value from the underlying asset or group of assets. Futures and options are examples of derivatives. Usually, underlying assets are market indexes, shares, commodities, currencies ..
What is a collection of investments owned by the investor called?
A collection of investments owned by the investor is called portfolio. An investor may have just one stock or multiple securities in a portfolio. It contains a diverse range of financial instruments like shares, bonds, futures, options, etc.
