Understanding Stock Market Terminology
The kind of jargon that is used by the stock market professional is often incomprehensible and very daunting to the newcomer in the field. But if you are getting into stock trading, it would a good time for you to start learning so that you don't get left behind. Understanding stock market terms is very important if you are to succeed at trading, but thankfully, it is not a very difficult task.
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.
Leverage refers to spending a small amount of money on an investment and getting a large return on your money. Buying stocks for margin means you can borrow money from a security or loan and then secure yourself from a fall in the value.
When you invest in a stock often it will also pay out a dividend. These dividends are paid out twice a year and they can be rolled over into more shares if you choose to do so.
Your bank account will benefit from the more knowledge you have about investing. The more market terminology you have the better you'll be able to make a wise investment in that decision.
In no time you'll be speaking the lingo if you pay attention to your market. - 23229
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.
Leverage refers to spending a small amount of money on an investment and getting a large return on your money. Buying stocks for margin means you can borrow money from a security or loan and then secure yourself from a fall in the value.
When you invest in a stock often it will also pay out a dividend. These dividends are paid out twice a year and they can be rolled over into more shares if you choose to do so.
Your bank account will benefit from the more knowledge you have about investing. The more market terminology you have the better you'll be able to make a wise investment in that decision.
In no time you'll be speaking the lingo if you pay attention to your market. - 23229
posted by X - Men @ 1:24 AM
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