• Feb, 2024
• By SmartBulls Team

1. Stock

A stock represents ownership in a company. When you buy a stock, you become a partial owner of that company.

2. Share

A share refers to a single unit of ownership in a company. Companies divide their ownership into shares, and investors can buy and own multiple shares.

3. Index

A collection of stocks that represent a particular market or sector, used to track the performance of the market or sector.

4. Bull Market

A bull market is characterized by a period of rising stock prices and optimism about the future.

5. Bear Market

A bear market is characterized by a period of declining stock prices and a pessimistic outlook.

6. Broker

An individual or firm that buys and sells stocks on behalf of clients.

7. Blue-Chip Stocks

Shares of large, well-established companies with a history of stable performance and reliability.

8. Order

An instruction to buy or sell a stock at a specific price.

9. Bid Price

The highest price a buyer is willing to pay for a stock.

10. Ask Price

The lowest price a seller is willing to accept for a stock.

11. Market Order

An order to buy or sell a stock at the best available price.

12. Limit Order

An order to buy or sell a stock at a specific price.

13. Volume

The number of shares of a stock traded in a given period.

14. Stop Loss Order

A stop-loss order is an automatic sell order that limits potential losses on an asset by triggering when its price reaches a predetermined level.

15. Market Capitalization (Market Cap)

The total value of a company's outstanding shares of stock, calculated by multiplying the number of shares by the current stock price.

16. P/E Ratio (Price-to-Earnings Ratio)

A valuation ratio that compares a company's stock price to its earnings per share. It helps determine if a stock is overvalued or undervalued.

17. Dividend

A payment made by a corporation to its shareholders, typically in the form of cash or additional stock.

18. Capital Appreciation

The increase in the value of an investment, resulting from a rise in the price of the stock.

19. Ticker Symbol

A unique identifier assigned to a stock, used to track its performance on stock exchanges.

20. Mutual Fund

A type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, and other assets.

21. IPO (Initial Public Offering)

An IPO is the first sale of a company's shares to the public. It allows the company to raise capital by offering ownership shares to investors.

22. Portfolio

A portfolio refers to the collection of investments (stocks, bonds, etc.) held by an individual or an entity.

23. Diversification

Spreading investments across different stocks or asset classes to reduce risk.

24. Margin

Borrowing money from a broker to buy stocks. It amplifies potential gains but also increases potential losses.

25. Long/Short

Going "long" means buying a stock with the expectation that it will increase in value. Going "short" means selling a stock you don't own, with the aim of buying it back at a lower price in the future.

26. Volatility

The measure of how much the price of a stock or the overall market fluctuates. High volatility means prices can change rapidly.

27. Resistance

A price level at which a stock or market index has historically had difficulty surpassing. It may act as a barrier preventing further price increases.

28. Support

A price level at which a stock or market index has historically had difficulty falling below. It acts as a floor, preventing further price declines.

29. Dividend Yield

The dividend payment received from a stock relative to its price. It is calculated by dividing the annual dividend per share by the stock's current price.

30. Earnings Per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock. It is a key measure of a company's profitability.

31. Stock Split

When a company divides its existing shares into multiple shares. It increases the number of shares outstanding while reducing the share price proportionally.