GLOSSARY
Annual Report
An annual report is a report prepared by a company that’s intended to impress shareholders. It contains tons of information about the company, from its cash flow to its management strategy. When you read an annual report, you’re judging the company’s solvency and financial situation.
Ask price
The ask is the lowest amount of money that a trader is willing to sell per share for a given stock
Bear Market
Trading talk for the stock market being in a downward trend, or a period of falling stock prices. This is the opposite of a bull market. If a stock price plummets, it’s very bearish
Bid Price
The bid is the highest amount of money a trader is willing to pay per share for a given stock.
Bonds
A bond is a fixed income investment which is issued by the government or a company to its buyers.
Broker
A person who buys or sells an investment for you in exchange for a fee (a commission).
Bull Market
When the stock market as a whole is in a prolonged period of increasing stock prices. It’s the opposite of a bear market.
Buy
Buy is the term used to describe the purchase of a percentage share of an asset/stock.
Close
The close simply refers to the time at which a stock exchange closes to trading.
Dividend Yield
A portion of a company’s earnings that is paid to shareholders, or people that own that company’s stock, on a quarterly or annual basis.
Exchange
A place in which different investments are traded. The most well-known exchanges in the United States are the New York Stock Exchange (NYSE) and Pelagioinvest.
Execution
When an order to buy or sell has been completed, the trader has executed the transaction.
IPO (Initial Public Offering)
An IPO is the first sale or offering of a stock by a company to the public. It happens when a company decides to go public rather than remain solely owned by private or inside investors.
Leverage
When you use leverage, you borrow shares in a stock from your broker with the goal of increasing your profit.
Moving Average
A stock’s average price-per-share during a specific period of time is called its moving average.
Order
An investor’s bid to buy or sell a certain amount of stock or option contracts constitutes an order. You have to put an order in to buy or sell 100 shares of stock, for instance.
Portfolio
A collection of investments owned by an investor makes up his or her portfolio. You can have as few as one stock in a portfolio, but you can also own an infinite amount of stocks or other securities.
Sell
Sell is the term used to describe the process of liquidating an asset/stock
Spread
This is the difference between the bid and the ask prices of a stock, or the amount for which someone is willing to buy it and the amount for which someone is willing to sell it.
Volatility
The price movements of a stock or the stock market as a whole. Highly volatile stocks are those with extreme daily up and down movements
Volume
The number of shares of stock traded during a particular time period, normally measured in average daily trading volume.