April 17, 2024

A handful of stock market terms that are used very often


When I first entered the share market world, I spend an enormous amount of time Googling the basic stock market terms which are used in the share market.


A basic understanding of these few stock market terms is really important if you want to enter the stock market and succeed.


Buy  This means buying shares or taking a position in a company.

Sell  Getting rid of the shares as you have achieved your goal or want to cut down losses.

Ask  Ask is what people who are looking to sell their stocks are looking to get for their shares.

Bid  Bid is what you are willing to pay for a stock.

Ask-Bid Spread Spread is the difference between what people want to spend and what people want to get.

Bull  A bull market is a market condition where investors are expecting prices to rise.

Bear  A bear market is a market condition where investors are expecting prices to fall.

Limit Order  A limit order is a type of order which executes at the price placed for buy or sell.

Market Order  A market order is a type of order which executes as quickly as possible at the market price.

Volatility  This means how fast a stock moves up or down.

Going Long  Betting on the stock price will increase so that you can buy low and sell high.

Going Short  Betting on the stock price will decrease so that you can buy high and sell low.

Averaging Down  This is when an investor buys as the stock goes down so as to increase the price at which purchased.

Market Capitalisation  This is what the market thinks a companys value is.

Float  This is the number of shares that can be actually traded after deducting the shares held by insiders.

Authorised Shares  This is the total number of shares that a company can trade.

IPO  It is an Initial Public Offering that happens when the private company becomes a publicly traded company.

Secondary Offering  This is another offering in order to sell more stocks and to raise more money from the public after the IPO.

Dividend  Portion of the companys earnings which is paid to the shareholders.

Broker  A broker is a person who buys or sells stocks on your behalf.

Exchange  An exchange is a place where different types of investment are traded.

Portfolio  A collection of investments owned by you.

Margin  A margin account lets a person borrow money from the broker to buy shares.

Sector  A group of stocks in the same sector/industry 

Stock Symbol/Ticker  A one to four-character alphabet root symbol which represents a company listed on the exchange.


There are hundreds of other terms, but I will continue making them simple on TikTok. Heres a fun one if you havent seen it before.




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