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These are the stock market terms you need to know as a beginner in the stock market. Stock market terminology for beginners. Stock or share is a portion of a company. If you buy an Apple stock, you own a share of Apple in the 5 billion shares total. Outstanding shares is the total number of shares a company releases to the public. Market capitalization is the total worth of a company. Bull market is a period of time where the stock market is mostly going upwards. A bear market is a period of time where the stock market is mostly going downwards. Long means to invest in a stock for the long term. Short means you’re short selling a stock or think a stock will go down. Volatility means the price movement of a stock is very high. Stock exchange is where stock brokers trade stocks. Trading hours are the hours when the market is open. After hours trading is a few hours after the market is closed, where traders can still trade. Ticker symbol is a small name for a stock. Stock brokerage is a company that trades stocks for you. Buy, sell or hold means a stock is a good buy, a good sell, or hold it if you own it. Swing trading is buying and holding a stock for 2 days to a few weeks. Long term trading is holding a stock for longer than a few months. Day trading is buying and selling a stock in the same trading day. Options is a contract for a stock to be worth a certain price at a certain date. Dividend is a payment by the stock you own to it’s investors. Initial public offering or IPO is when a company goes public and people can buy their stock. Blue chip is a big and well established company. Valuation ratio of metric are numbers used to value a stock. Due diligence is doing homework on the company you want to invest in. Index fund is a combination of many stocks in one fund. Mutual fund is a fund managed by people working at a bank. Dow Jones, S&P 500, Nasdaq are indices that tell you how well a market is doing. Points are the dollar amount of a stock of index. Bubble is when a market is overpriced and might pop or drop. Volume is the number of stocks being traded in a certain time. Red or green means a stock is going down or going up. Technical stock analysis means using patterns in a stock’s price to guess it’s future price. Emotional trading is trading with your emotions, on recent news. CEO is the person in charge of a company. Board of directors decide who the CEO and other managers are, they control the stock. Margin is borrowing money to invest with. Stock split is splitting up the total number of stocks, reducing the price of the stock. Public company is a company that can be traded. Private company is a company not available for trading. Average down is buying a stock when it drops down in price for a lower average price. Record high is a new record in a stock’s price. Rally is a rapid increase in price. Sector is a group of stocks in the same industry. These are all the terms you need to know as a beginner investor.