Understanding Stock Market Terminology
Stock market terminology is often confusing and difficult to understand. This is especially true if you are a new investor. Even though these terms are difficult to understand it is in your best interest to learn these phrases to help you in making wise investment decisions.
One of the most commonly heard terms is about the stock market going 'bearish'. This basically refers to a time when the market is beginning to slide and is likely to experience a fall. The opposite of this-when the market is doing well and is expected to keep rising-is called a 'bullish' market situation. A bullish market is supposed to be enthusiastic, with scope for quick profits, while a bearish market is considered cynical and racked by mutual suspicion. Simple as that! Now that you know the bulls and bears of the stock market, you should know what a 'writer' means in stock market jargon. A writer is not the genius artist of the Renaissance mode, but rather one who sells a stock option. Opposite to the writer is the one who buys the options, and he is called, quite simply, the 'taker'. So, as you can see, it is not such a difficult task understanding stock market terms-a lot of it is just common sense.
The next term is called leverage. Leverage refers to investing a small amount of money for a lot of return on your money. Buying stocks on margin is something else you should learn. It basically mean s you can borrow extra funds for security in case of a fall.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
These are just a few stock market terms. Many new terms are being created everyday. If you know the most about your market and understand the terminology better you will be in a good position to make a wise investment. So do your research and it will reflect in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23162
One of the most commonly heard terms is about the stock market going 'bearish'. This basically refers to a time when the market is beginning to slide and is likely to experience a fall. The opposite of this-when the market is doing well and is expected to keep rising-is called a 'bullish' market situation. A bullish market is supposed to be enthusiastic, with scope for quick profits, while a bearish market is considered cynical and racked by mutual suspicion. Simple as that! Now that you know the bulls and bears of the stock market, you should know what a 'writer' means in stock market jargon. A writer is not the genius artist of the Renaissance mode, but rather one who sells a stock option. Opposite to the writer is the one who buys the options, and he is called, quite simply, the 'taker'. So, as you can see, it is not such a difficult task understanding stock market terms-a lot of it is just common sense.
The next term is called leverage. Leverage refers to investing a small amount of money for a lot of return on your money. Buying stocks on margin is something else you should learn. It basically mean s you can borrow extra funds for security in case of a fall.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
These are just a few stock market terms. Many new terms are being created everyday. If you know the most about your market and understand the terminology better you will be in a good position to make a wise investment. So do your research and it will reflect in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23162
posted by X - Men @ 2:00 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home