Stock market terms and definitions pdf

This article gives to the point, elementary meanings of stock market terms. We have expanded this years edition of the investment dictionary by introducing several terms since our last update in 2012 that cover industry updates, as well as other terms not covered previously. Day trading the practice of buying and selling within the same trading day, before the close of the markets on that day. If you are reading one of my stock market articles, you may have come across an investment term or phrase that you are unfamiliar with. I dont offer many explanations of things, but i generally link to the investopedia and other sites for more details. Heres a glossary of 40 key stock trading terms for beginners. Ive assembled a list of the more pertinent investment phrases and terms, along with their definitions, that i frequently reference in my stock market articles.

Established by australian stock exchange asx at 500 points in january 1980, it was used as the predominant measure of the overall performance of the australian sharemarket. This page is my personal cheat sheet of stock market and businessaccounting definitions. Beta a measurement of the relationship between the price of a stock and the movement of the whole market. The process of granting permission to the securities of a company to be listed in a stock exchange and to provide trading facilities for the securities in the market. Glossary of commonly used stock market terminologies arbitrage the business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in the other or vice versa. New york stock exchange nyse the oldest and most famous market for the buying and selling of securities. Definitely, investopedia was my favorite website to learn the meaning of those words. Get familiar with this common stock market terminology to get a better understanding of the markets.

Zanons definitions for the stock market test learn with flashcards, games, and more for free. Equities types of securities that represent ownership in a corporation and represent a claim on a proportionate share of the corporations assets and profits, i. Broker a person who buys or sells an investment for you in exchange for a fee a commission. Terms definitions 52 week high the highest price that a stock has traded at during the. To separate wise investments from inappropriate ones and develop your stock investing smarts, you should understand these and other terms. With this handy guide, market terms will start making way more sense. Quite simply it means you try to buy something cheap in one place, to make a profit selling it somewhere else.

Glossary of commonly used stock market terminologies. The asx groups activities span primary and secondary market services, including capital formation and hedging, trading and price discovery australian securities exchange central counter party risk. Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions. Expanding your stock market vocabulary will enable you to be a better investor, so that you can trade successfully. Understanding the stock market can be a daunting task for any new investor. The amount a company owes to suppliers for products and services bought. The business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in the other or vice versa. As with anything else, mastering the stock market means mastering the lingo and for traders, that can be a bit confusing at first. The all ords was made up of the weighted in terms of market capitalization share prices of approximately 500 of the largest australian companies. It is one of the important constituent of capital market.

Day trading the practice of buying and selling within the same trading day, before the close of the markets. A market order is an order to buy or sell a stock at the. The additions reflect the everchanging face of investment markets, with the associated phraseology that this introduces. I would like to receive nasdaq communications related to products, industry news and events. Quite simply it means you try to buy something cheap. Bear market this is trading talk for the stock market being in a down trend, or a period of falling stock prices.

The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and. To help you with your investment and financial terminology, lets take a look at the share market basics. A slang term used to refer to something favorable that has happened in business. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. You will use these terms to prepare an additional assignment.

Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market operations. Stock terms glossary of stock market terms and definitions. It is a valueweighted or capitalizationweighted average of stock. A rise in the price of a security or in the value of one currency in terms of another. Experts and novice often use these terms to talk about strategies, charts, indices and other elements of the stock market. Stock market is an organized market for the purchase and sale of industrial and financial security. Basic investment terms creative capital management. The benefit of buying stocks online yourself is the freedom to avoid paying this commission. Stock market terms, investment terminology and definitions. Here are some stock market terms that you must know if you want to be a profitable trader.

Before investing in a market before investing, it is always wise to learn the basics of stock market. The most comprehensive investing glossary on the web. Keep this list handy when screening for potential trades on stockstotrade. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Stock market definitions the stock market consists of several public exchanges where brokerdealers trade stocks.

Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market. Fixed income a security that pays a specific interest rate, i. However, the higher risk involved also means that you have an opportunity to make a greater profit. Nil paid a new issue of shares dealt on the stock market on which no payment has yet been made, usually from a new issue or rights issue.

In this article we will go over the basic stock market terms. Also included here explanation of stock market terms and jargon used by people involved in trading stocks and used by. Definitions of terms used on stock tables directions. Were going to start with basic terms that most day traders will already be familiar with. Day trading terminology is something every trader will need to understand. This article attempts to create a list of stock terms, that will not require you to go and search elsewhere. Margin collected by the stock exchange from the members having unduly large outstanding position. Are you looking to invest more in the markets and dont know where to start. A stock exchange facilitates stock brokers to trade company stocks and other securities.

A financial terms by letter nasdaq nasdaq stock market. We have compiled articles and tutorials on the share market basics. In india, the secondary and primary markets are governed by the security and exchange board of india sebi. Initial public offering, abnormal return and liquidity are just a few of the terms you will come across when you invest in the stock market. Ill also provide brief definitions of each to help you. The secondary market or the stock exchanges are regulated by the regulatory authority. Over the long term, an investment in stocks has historically had an average return. Welcome to the comprehensive list of stock market terms and their definitions, designed for investors at all levels.

Nov 14, 2018 stock market terms are discussed in this video because you need to learn them as an investor or trader. You can always change your preferences or unsubscribe and your contact information is covered by. A stock may be bought or sold only if it is listed on an. Whether you are a beginner at investing or seasoned investor being familiar the basic term of the stock market is essential. Complete the following table by writing down the definition of the terms listed on the left. Stock market terms speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. To separate wise investments from inappropriate ones and develop your stock investing smarts, you should understand these and other terms related to the trading arena. Stock market is also known as stock exchange or share market in all over the world. These are just a few of the vocabulary terms from the stock market unit learn with flashcards, games, and more for free. To help you with your investment and financial terminology, lets take a look at the share market basics for beginners, and what this ratio is, what it means. The sec s office of investor education and advocacy is issuing this investor bulletin to help educate investors about the.

So, check out this stock market glossary for some stock terms. A method of recording a companys financial activity and arranging the information in reports that make the information understandable. Stock market glossary stock trading terms dictionary. Auction treasury the issuance of new treasury bills, notes, and bonds at stated intervals by the federal reserve. Bull market this is when the stock market as a whole is in a prolonged period of increasing stock prices.

Auction market a market where buyers and sellers enter bids and offers simultaneously, such as the new york stock exchange. Speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. The stock market refers to the collection of markets and exchanges where the issuing and trading of equities stocks of publicly held companies, bonds and other sorts of. A number of the terms have other noninvestment related meanings, which we have not captured. So, check out this stock market glossary for some stock terms and. The reason for this is that share prices rise and fall all the time as economic and market forces change. You can purchase adrs like stock shares for foreign companies that trade in the u.

The australian market place for trading in shares, bonds and other fixed interest securities. A bull market is a prolonged period where investment prices rise faster than their historical average, as a result of economic recovery, boom, or investor psychology. Stock market terminologies are industryspecific terms which are frequently used when we read or talk about the stock market. A comprehensive glossary is a valuable reference tool that can be used when attending seminars, watching or listening to financial programs and reading financial market material. Glossary of commonly used stock market terminologies arbitrage. An important tool for the investor is to understand the meaning and sense of. Finding an integrated glossary of stock market terms and definitions is only possible in the stock market section of a financial dictionary. It is made available with our compliments, to members of the. The guide is an important resource that will help to create a much greater understanding of. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice. Investing on the stock market is riskier than some other investments. If you were never taught at least the basics of personal finance, its easy to get overwhelmed by all of the opportunities there are to save and invest.

Also included here explanation of stock market terms and jargon used by people involved in trading stocks and shares. For example, an employee receiving a raise may reply with the words cool beans, upon receiving the news. Its enough to get any beginner on the same playing field, so they can start toying with the more nuanced or complex concepts in the investing universe. Jun 01, 2019 in this blog, we are going to present an elementary guide for the beginners to help them understand the basic key terms used in the share market. Over the last few decades, the average persons interest in the stock market has grown exponentially. Although there are thousands of terminologies that a stock market. It is a measurement of relationship between stock price of any particular stock and the movement of whole market. When i first entered the investing world, i spend a lot of time googling the key terms in share market. Basic stock market trading terms and their definitions. It is a widely watched stock market index in australia. Stock market and business definitions cheat sheet by alvin alexander. Before you go out into too many technicalities, here is a little glossary with few key terminologies that you should know before you start investing in the trade market. Having launched it originally in 2004 we have now updated it with modern. Ive assembled a list of the more pertinent investment phrases and terms, along with their definitions, that i frequently reference in my stock market.