Understanding Stock Market Terminology
The kind of jargon that is used by the stock market professional is often incomprehensible and very daunting to the newcomer in the field. But if you are getting into stock trading, it would a good time for you to start learning so that you don't get left behind. Understanding stock market terms is very important if you are to succeed at trading, but thankfully, it is not a very difficult task.
The first two terms you may hear mentioned a lot are stocks being bullish or bearish. If a stock is a considered a bull then it is expected to do well in the market. On the opposite if a stock is bearish it is not going to increase a lot in the beginning and may fall in price. The next term used is a writer. A writer is anyone who sells a stock option. Someone who buys these options is called a taker.
The next term is called leverage. Leverage refers to investing a small amount of money for a lot of return on your money. Buying stocks on margin is something else you should learn. It basically mean s you can borrow extra funds for security in case of a fall.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
These are just a few stock market terms. Many new terms are being created everyday. If you know the most about your market and understand the terminology better you will be in a good position to make a wise investment. So do your research and it will reflect in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23226
The first two terms you may hear mentioned a lot are stocks being bullish or bearish. If a stock is a considered a bull then it is expected to do well in the market. On the opposite if a stock is bearish it is not going to increase a lot in the beginning and may fall in price. The next term used is a writer. A writer is anyone who sells a stock option. Someone who buys these options is called a taker.
The next term is called leverage. Leverage refers to investing a small amount of money for a lot of return on your money. Buying stocks on margin is something else you should learn. It basically mean s you can borrow extra funds for security in case of a fall.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
These are just a few stock market terms. Many new terms are being created everyday. If you know the most about your market and understand the terminology better you will be in a good position to make a wise investment. So do your research and it will reflect in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23226
posted by X - Men @ 12:53 AM
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