Monday, 20 February 2023

32 Jargons that a Stock Market Enthusiast should know

The stock market can be a complex and confusing place, with many jargons and technical terms that can be difficult to understand. Here are 32 jargons that investors should know to help them better navigate the stock market:


  1. Bear Market - A market condition in which prices of securities are falling or expected to fall.
  2. Blue Chip - A large, stable, and financially sound company that has a long history of consistent earnings.
  3. Bull Market - A market condition in which prices of securities are rising or expected to rise.
  4. Capitalization - The total value of a company's outstanding shares.
  5. Correction - A temporary decline in the price of a security, usually around 10%.
  6. Dividend - A portion of a company's earnings that is paid out to shareholders on a regular basis.
  7. Dow Jones Industrial Average - An index that tracks the stock prices of 30 large, publicly traded companies.
  8. Earnings Per Share (EPS) - The portion of a company's profit that is allocated to each outstanding share of common stock.
  9. Exchange-Traded Fund (ETF) - A type of investment fund that is traded on stock exchanges like individual stocks.
  10. Fundamental Analysis - A method of analyzing a company's financial and economic factors to determine its intrinsic value.
  11. Futures - An agreement to buy or sell an asset at a specified price on a future date.
  12. Growth Stock - A stock that is expected to grow at a faster rate than the overall market.
  13. High-Frequency Trading (HFT) - A type of trading that uses advanced algorithms to execute trades at extremely high speeds.
  14. Index Fund - A type of mutual fund that tracks the performance of a particular index, such as the S&P 500.
  15. Initial Public Offering (IPO) - The first sale of a company's stock to the public.
  16. Insider Trading - The buying or selling of a security by someone with access to non-public information about the company.
  17. Investment Grade - A credit rating that indicates a low risk of default.
  18. Liquidity - The ease with which a security can be bought or sold on the market.
  19. Margin - Borrowed money that is used to purchase securities.
  20. Market Capitalization - The total value of a company's outstanding shares.
  21. Market Index - A benchmark used to measure the performance of a specific market or sector.
  22. Mutual Fund - A type of investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
  23. Option - A contract that gives the buyer the right, but not the obligation, to buy or sell a security at a specified price on or before a specified date.
  24. Penny Stock - A stock that trades for less than $5 per share.
  25. Price-to-Earnings (P/E) Ratio - A measure of a company's valuation that compares the current stock price to the company's earnings per share.
  26. Primary Market - The market where new securities are sold to the public for the first time.
  27. Put Option - An option that gives the buyer the right, but not the obligation, to sell a security at a specified price on or before a specified date.
  28. Rally - A sharp rise in the price of a security or the overall market.
  29. Resistance - A price level at which a security or the market is expected to encounter selling pressure.
  30. Risk Management - The process of identifying, assessing, and mitigating the risks associated with investing.
  31. Short Selling - The practice of selling a security that the seller does not own, with the expectation of buying it back at a lower price to make a profit.
  32. Small Cap - A company with a market capitalization



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