These are some of the Terms used in the Stock Market. More terms will be added as the blog evolves. If you have any questions about any of these or you have a term to add, please feel free to let us know.

 

Acquisition – Takeover of a company by another.

 

All or None Order- An order used to make sure that if all of the order can’t be filled, then none of it will be filled.

 

Ask or Asking Price – The lowest Price a seller will accept to sell a share of a stock, this price may differ from what you are actually quoted.

 

Bear (Bear Market) – This represents a stock, or the general stock market itself, is declining or is likely to decline in the future.

 

Bid – The highest price a buyer is willing to pay for a share of a stock, this price may differ from what you see as the current value of the stock.

 

Bull (Bull Market) – This represents a stock, or the general stock market itself, increasing or is likely to increase in price.

 

Capital Gain/Loss – The difference between the initial amounts spent to buy the stock and the selling value.

 

Day Order – An order that expires at the end of the day if it is not filled.

 

Dividend – This is a portion of a company’s profit given back to investors in either cash or stock value. Dividends are given out monthly, quarterly, semi-annually, and annually. Some companies may have different schedules.

 

Ex-Date (Ex-Dividend Date) – The first day the stock’s dividend is due. Investors looking to get the dividend must purchase the stock before this date.

 

Limit Order – An order to buy a stock at a set price. Brokers such as Scottrade and E-Trade allow you to set you accounts for Limit Orders automatically.

 

Liquidation – Converting assets into cash by selling.

 

Margin – This is the amount of money a company will lend against the security of the investment bought.

 

Market Order – An order to buy or sell a stock at the current Market Price.

 

Option – The right to purchase or sell a stick at a particular price within a set period of time.

 

Portfolio – All of the securities held by an investor.

 

Record Date – The date used to determine which shareholders are entitled to receive the next Dividend and the number of shares on which it will be paid.

 

Reverse Split – Issuing smaller number of shares with increased values without changing the total value of the stocks owned by the investor. This is also known as a stock merge. Example: 100 Shares of Bank A costing $1 per share for a total of $100 is reverse split into having 10 shares of Bank A costing $10 per share for the same total of $100.

 

Split – Division of shares with smaller values without changing the total value of the stocks owned by the investor. Example: 10 Shares of Bank A split costing $10 per share for a total of $100 is split to 100 Shares of Bank A costing $1 per share for the same total of $100.

 

Stock – The smallest measurable unit of ownership in a company, sold by companies to raise money.

 

Stock Broker – A person that buys or sells stocks, bonds, and commodities in exchange for a fee called a commission.

 

Stop Order – An order to buy or sell a stock when the price falls or rises to the set price. This is used to cut losses when selling or make profits when buying. Brokers such as Scottrade and E-Trade allow you to set you accounts for Limit Orders automatically.

 

Volatile – Unstable or constantly changing in the stock market.

 

Yield – The percentage of the dividend paid against the stock price. This value changes as the value of the stock and/or dividend changes.

 


Nazmus

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