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Most Commonly Used Stock Market Terms
Posted by GuestPoster in Personal Finances
Words and terms are the most important aspects of our daily activities. Whether you are in remote areas or cities, words are used everywhere. With the evolution of technology, information is such a valuable tool in making business especially online. We are now in the period of information age, so in every business activity words are used. In stock market, there are terms that a beginner should know. According to experts, these stock market terms are a step towards a successful money making, which is always the aim of every businessman. Here, I will share some of the most commonly used stock market terms that you should know.
- Stocks – This term refers to the merchandise or products that a company puts in the market for consumers to buy. In these stocks, the company gives you a dividend twice per year or depending on your agreement.
- Stock market – This is equivalent to equity market, which refers to a place where people or company trade their stocks and derivatives at an agreed price.
- Bear market – This is a term which refers to the trend in the stock market. If the market is experiencing a decline in prices and value of stocks, then it is called bear market.
- Bull market – This term is the opposite of bear market because it refers to the period when the market is doing well and is expected to keep rising.
- Leverage – This term means the ability of a stock to make a huge profit by placing it in a small amount of money. This term is important because it determines whether your stock is doing well or has poor performance in the market.
- Margin loan – It is important for your to know this term because it allows you to borrow funds to help you buy more shares, which form your security and loan ratio. If you make a margin call, you can ask for extra money which will serve as security in case of a fall in the value of stocks in the stock market.
These are the common stock market terms which you should know. As my stock advice, try to make more research about these terms to help you gain more knowledge about them. Remember that success in business is achieve by hard work and dedication in your works.
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