Know that feeling of being in a company of people and they start using terms you don’t understand?
Let’s be honest, we’ve all been there.
But as we said before, we are here to guide you through the Stocks markets every step of the way, big or small.
So from traders to traders, here are 40 key stock trading terms for Beginners.
We will be using them in the levels to come, so feel free to bookmark this page or print them out so you can always have them on hand!
Without further ado, let’s get started!
To ‘buy’ something in the Stock market means to take a position or buy shares in a company.
To ‘sell’ something in the Stock market means to sell your shares in a company.
The bid is the price is what one is willing to pay for a Stock.
The ask is the price is what people are selling their Stock for.
The difference between the bid and the ask price is called the spread.
A bull market refers to the market that is on the rise and the Stock prices are also expected to rise.
A bear market refers to the market where prices decline and the Stock prices also fall for a sustained period of time.
A limit order is a type of order to buy or sell a stock for a specified price or better.
A market order is an instruction from a trader to a broker to buy a Stock immediately at the current market price.
Day order in the Stock market is an instruction from a trader to their broker to buy or sell a security by the end of the day.
Volatility refers to the rate at which a certain Stock moves up and down.
Liquidity is how fast the shares of a certain stock can be bought or sold without impacting the price.
Trading volume refers to the total number of Stocks, or shares, traded over a specified period of time.
An uptrend describes the movement of a Stock when the overall direction is upward and getting higher.
A downtrend describes the movement of a certain Stock when the overall direction is downward and getting lower.
If you go long on a Stock, it means you are buying your share in a Stock.
If you go short on a Stock, it means you are selling your shares in a Stock.
Day trading refers to buying and selling shares on the same day before the market closes.
A person or an organisation that buys an investment on your behalf, in exchange for a fee.
Averaging down means buying more shares in a stock that you already own after its price has declined.
Market cap refers to the total value of all a company’s shares of stock and therefore its total value.
Floating Stock is the number of shares available for the public to buy or sell on any given day.
A company’s outstanding shares are the total number of Stocks currently held by its shareholders.
IPO, or an initial public offering, refers to the process of shares in a privately held company being listed on the Stock exchange for the first time.
A secondary offering is the process of large numbers of shares being sold from one investor to another on the secondary market.
A stockbroker is a professional trader who buys and sells shares on behalf of their clients.
Dividends are earnings a company pays out to its shareholders.
A stock exchange is a centralized location where people can buy or sell Stocks or Shares in companies.
Margin refers to the process of traders borrowing money from a broker to purchase Stocks.
A stock portfolio is a collection of Stocks owned by an investor.
Authorized Shares refer to the total number of shares that a company is legally allowed to issue to investors.
Blue-chip stocks are the shares of well-known, well-established and profitable companies.
Hedge funds are an alternative form of investment using pooled funds.
A stock quote is the price of a stock as quoted on the exchange market.
A price rally refers to a period of time in which a Stock sees a continuous increase.
A sector is a group of Stocks that are in the same type of business.
Stock Symbols are a unique series of one to three letters assigned to a Stock for trading purposes
Dividend Yield refers to the returns on investment on any given Stock.
Arbitrage is the process of simultaneous buying and selling assets in different markets in order to profit from small differences in the asset’s listed price.
Beta is a measure of a Stock’s volatility in relation to the overall market.
Rebalancing means buying or selling a share in an organization to bring your asset allocation back in line with your original targets.
An annual report is a financial report that provides information on the company’s activities throughout the year.