If youre just starting to trade, there are trading terms youll hear frequentlylong, short, bullish, and bearishand youll need to understand them. Common terms in share market for new comers in stock market. The calculation for earnings per share is net income dividends on preferred stock weighted average shares outstanding. Ask the price that a seller is willing to take for a share of stock. Instead the money is used for another purpose, the broker gambling that the customer is wrong and that the market price will decline and the stock can be bought. Beta a measurement of the relationship between the price of a stock and the movement of the whole market.
Ive assembled a list of the more pertinent investment phrases and terms, along with their definitions, that i frequently reference in my stock market articles. Market share represents the percentage of an industry or markets total sales that is earned by a particular company over a specified time period. Jul 12, 2015 there are various terms like bear and crash etc used to describe activities in stock markets. 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. Many terms have variations, and new terms are added daily, so its important to stay current. For those that would rather not look at our epic infographic, the 40 trading terms are also listed. May 02, 2019 market share represents the percentage of an industry or market s total sales that is earned by a particular company over a specified time period. A comprehensive glossary is a valuable reference tool that can be used when attending seminars, watching or listening. 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. An important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets.
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. Capitalization the market value of a company, calculated by multiplying the number of shares outstanding by the price per share. 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. Know the terms of share market to be a better investor. The reason for this is that share prices rise and fall all the time as economic and market forces change. Terms definitions 52 week high the highest price that a stock has traded at during the previous year 52 week low the lowest price that a stock has traded at during the previous year stock symbols a unique series of letters assigned to a security for trading purposes dividendsshare a share of a companys profits passed on to the shareholders on. How to understand stock market in simple terms simple. We have compiled articles and tutorials on the share market basics. Basic investment terms creative capital management. A marketing dictionary can be a helpful resource for marketing professionals because there are numerous terms used in the industry. The oldest and most famous market for the buying and selling of securities. Stock market terms, investment terminology and definitions.
Your plain english guide to investment jargon definitions of 5 stock market terms youll want to know. Get familiar with the basic terminology of the stock market at angel broking website. A firms market share relative to competitors market share provides an indicator of its success in marketing its brands over time. Even seasoned investors are bound to come across investing jargon that leaves them stumped. A particular kind of investor who purchases shares in the expectation that the market price of that companys share will increase. The guide is an important resource that will help to create a much greater understanding of. A securities market in which a high volume of trading activity takes place. 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. Understanding these terms can make it easier to communicate what you are doing and. The asx groups activities span primary and secondary market services, including capital formation and hedging, trading and price discovery australian securities exchange central counter party risk transfer asx clearing corporation. Cash equivalent a shortterm moneymarket instrument, such as a treasury bill or repurchase agreement, of such high liquidity and.
Nov 21, 2017 this basic domain knowledge of these terms is really important if you want to enter and succeed in the share market. Market share definition in the cambridge english dictionary. This glossary of terms has been produced to aid beginning traders in the challenging task of becoming familiar with new vocabulary and terminology. Brokerage products and services offered by firstrade securities, inc. These words are important for effectively describing market opinions and when communicating with other traders. Understanding the stock market can be a daunting task for any new investor. The most comprehensive investing glossary on the web. Marketshare theory law and legal definition in terms of antitrust law, marketshare theory is a method of ascertaining damages for lost profits by calculating the impact of the defendants violation on the plaintiffs output or market share. They offer a stable record of significant dividend payments and have a reputation of sound fiscal management. However, the higher risk involved also means that you have an opportunity to make a greater profit. This just sums up a few terms used by stock market. Given below is a basic glossary of terms that you must know as an investor. It is the highest rated bond that gives maximum returns at the time of maturity.
Heres a glossary of 40 key stock trading terms for beginners. Bull market this is when the stock market as a whole is in a prolonged period of increasing stock prices. So, check out this stock market glossary for some stock terms and. Before you go out into too many technicalities, here is a little glossary with few key. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Also included here explanation of stock market terms and jargon used by people involved in trading stocks and shares. Terms definitions 52 week high the highest price that a stock has traded at during the previous year 52 week low the lowest price that a stock has traded at during the previous year stock symbols a unique series of letters assigned to a security for trading purposes dividends share a share of a companys profits passed on to the shareholders on. The stock market is any exchange that allows people to buy and sell stocks and companies to issue stocks.
A firms market share relative to competitors market share provides an indicator of its success in. To help you with your investment and financial terminology, lets take a look at the share market basics for beginners, and what this ratio is, what it means. To separate wise investments from inappropriate ones and develop your stockinvesting smarts, you should understand these and other terms related to the trading arena. There are various terms like bear and crash etc used to describe activities in stock markets. Marketshare theory law and legal definition uslegal, inc. However, this does not mean all equity investments would. 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. Share market definition and meaning collins english dictionary. This article attempts to create a list of stock terms, that will not require you to go and search elsewhere. 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. If you are reading one of my stock market articles, you may have come across an investment term or phrase that you are unfamiliar with. Review firstrades brokerage services with finra brokercheck.
Stock market glossary stock trading terms dictionary. In this post, we are going to present an elementary guide for the beginners to help them understand the key terms in share market. A market in which there are comparatively low number of bids to buy and offers to sell. In this article we will go over the basic stock market terms. Market definition is also important when assessing whether an undertakings market share is below market share thresholds set out in certain block exemptions. Keep this list handy when screening for potential trades on stockstotrade. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. These are just a few of the vocabulary terms from the stock market unit. Meaning, pronunciation, translations and examples log in dictionary. A market in which the stock price are increasing consistently. Finding an integrated glossary of stock market terms and definitions is only possible in the stock market section of a financial dictionary.
Usually the grade aaa is given to the best debt obligation or. Stock terms glossary of stock market terms and definitions. The all ords was made up of the weighted in terms of market capitalization share prices of approximately 500 of the largest australian companies. 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.
But it needs a huge investment to open stands in multiple places. This basic domain knowledge of these terms is really important if you want to enter and succeed in the share 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. Investing on the stock market is riskier than some other investments. Bear market this is trading talk for the stock market being in a down trend, or a period of falling stock prices. Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. What are the different terms used in a share market. Jan 24, 2019 a marketing dictionary can be a helpful resource for marketing professionals because there are numerous terms used in the industry. 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. In the stock market, an agent refers to a brokerage firm which buys or sells shares on behalf of the investor. Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions.
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