Glossary comprises of specific terms which form an important part of the trading sector. These terms must be understood well before stepping into the investment segment of the stock market. You will find different types of glossary terms across offline and online resources. But it is crucial to know different kinds of investment terms in a simplified manner. Here are different terms in the investment field, which must be clarified before starting with the investment.
- Ask & Bid: Ask is the price seller is asking to sell stock and bid is the price buyer is willing to pay. Bid is the amount in which a stock trader willingly invests in the form of paying off the stocks. While selling the individual shares, the ask price is also dependent on the costs of buying stocks. The difference in the stock price depends on the buying price and selling price of the respective amount.
- Broker: A broker is a professional who performs the tasks of stock trading, including buying and selling of stocks. Brokers are well trained in the field of trading of stocks.
- Bear market: This is a section of the stock market, which is focused and analyzed based on the downfalls of the stock market. If a stock does not perform well, then the corresponding stocks will be mentioned as bearish stocks. Investors need to be well prepared with the assistance of the stock market professionals and deal with the downtimes in the best possible manner.
- Bull market: The bull market is the segment of the stock industry when the stocks of the companies are performing well. The value of the stocks is high in the bull market.
- Close: This is the time at which the respective stock exchange market closes the trading operations. After this time, the investors cannot carry on with the trading activity.
- Day Trading: This type of trading is performed when the activity of buying and selling of the stocks performed on the same day. This is done in the time period in between of opening of the stock market to the closing of the same.
- Dividend: It is a significant portion of a respective company. This amount is paid to the shareholders of the company on an annual or quarterly basis. This depends on the policies and segment of the respective company.
- Exchange: This is the location where investors trade the stocks. Some of the popular exchanges across the world are NASDAQ and the New York Stock Exchange (NYSE).
- Index: Index is a benchmark that is considered as a reference marker. Traders and portfolio markers utilize the index to understand whether their clients portfolios are performing well in the market.
- Portfolio: Portfolio mainly comprises of a combination of stocks. A portfolio can also consist of one stock. This completely depends on the choice and investment goals of the respective investors.
- Share Market: This is the market in which the shares of a company are bought and later sold as per the performance of the respective stocks. This is known as the stock market.
- Yield: Yield is the measure of return on the investment. This is related to the payment of a dividend for the investor.
These are some of the most commonly utilized terms in the trading market and form a significant part of the investment sector. Investors must focus on the basics before diving into investing a lot of money into the trading market.