Whenever you enter the stock market scenario, it is best to have the basic terms in your memory so you can remember these at the eleventh hour. There are many terms that a merchant uses when he/she is in the race. According to a senior financial analyst at Wilkins Finance, we must memorize, not all, but those that are really important. Here we will show some of the terms you must know before becoming a millionaire.
Bear Market
Every time the market is going down, it is necessary to say that it is in bearish trend or that it is a bearish market. It does not mean that you have to do something with a bear, but a defined term to define the real situation of the current market trend.
Bull Market
It is just the opposite of the Bear market. When the stock market increases for a long period, it is the bullish or bullish marketplace.
Averaging down
When an investor buys more stock, it results in the decrease in the average buying price.
Beta
The stock price and the total movement of the market are called Beta. This means that the story has 1.5 beats, that is, according to each movement, the stock moves 1.5 points.
Day trading
Before the market closure, the day of purchase and sale is a trading day. Every day traders who want to make traders or lose traders are called “active traders” or “day traders”.
Blue chip stocks
Blue chip stock is a large level, well reputable and financially strong company. It often has a good hold on the stock marketplace, there are big businesses that have a steady record of extra payments and it has a good reputation for yearly management. One of these is Blue Chip Stock and it originated from blue gambling chips, which are the most significant chips used in casinos in Las Vegas.
Dividend
This is the portion paid to people who own stock either the quarterly or yearly basis.
Hedge
It is the term used to limit your loss by taking offset position. If you have 50 stocks of any company, you could squat the stock futures the position of stock too.
Exchange
This is the place where different investors are trading. Most well-known in the USA is NYSE and the NASDAQ.
Execution
In order to finish your purchase/sale, for example, you have made 100 shares to sell, 100 shares have been sold.
Margin
Any margin account allows a person to obtain the money taken out as lend basically from a dealer to purchase an asset. The variance between an amount of stock in price of any security is known as Margin.
Order
The buyer of shares or options contracts is called an order or request. It indicated whether you want to buy or sell.
Portfolio
This is a group of investments owned by any stockholder.
Quote
Any information about the last price of a trade can be delayed for 20 minutes it is said to be Quote.
Rally
It is a period of time in which the prices of stocks, bonds or indexes continuously increases. This sort of increase can also bear the marketplace.
Sector
When there is more than one stock in the same business place, it is known as sectors such as Samsung and apple.
Spread
It is the difference of prices for immediate sale or immediate purchase.
Stock Symbol
It is used to identify or find the shares that are publicly traded. It may contain symbols or alphanumeric characters.
Volatility
This is the value movement of a stock market as a whole. High daily rates are very unstable stocks and the downward movements are low volatility and the wide degree of trading within the day is volatility.
Yield
It is the ratio of annual share receivers divided in such a way that all of them receive the same share price. An example would be stock that gives out $1 in dividends but is currently trading for $25.
Volume
It is the number of stock that is shared during some time period measured in normal daily volume of trading.
Summing up
If you have these terms at your fingertips, then playing in a stock market would be a great fun. So, for enjoying your investment game you must be aware of these very critically.
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