Understanding Stock Market Terminology
Understanding stock market terms when you are a new investor can be a difficult task. There are a lot of phrases and jargon passed a long that you may not understand. The more stock market terms you know the easier it will be for you to invest though.
To begin with anyone that sells stock options is called a writer. Someone who then buys these stock options is called a taker. If the economy is doing well and a stock is considered to be a bull or bullish it is stock that is strong and may raise in value. If a stock is considered to be bearish then it may fall in value or stay the same.
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 are what companies put on the market for you to buy. On these stocks, the company gives you a dividend twice a year. Many people also choose to reinvest their dividends in stocks so that it can generate its own money at a pace faster than in the bank.
Stock market terms are multiplying with every passing day and you need to learn something new everyday to stay up to date on new developments. A knowledge of these terms and how they work is essential to succeeding on the stock market. You take some time understanding stock market terms, or you may end up making big mistakes and losing big money. So, in-depth knowledge is an integral part of investing wisely, making gains and getting rich. The rest won't happen unless you know your way around the market. So, take your time and inform yourself and before long, you will see the dividends of your efforts show up in your bank account.
Just do your homework and pay attention and you'll be speaking the lingo in no time. - 23200
To begin with anyone that sells stock options is called a writer. Someone who then buys these stock options is called a taker. If the economy is doing well and a stock is considered to be a bull or bullish it is stock that is strong and may raise in value. If a stock is considered to be bearish then it may fall in value or stay the same.
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 are what companies put on the market for you to buy. On these stocks, the company gives you a dividend twice a year. Many people also choose to reinvest their dividends in stocks so that it can generate its own money at a pace faster than in the bank.
Stock market terms are multiplying with every passing day and you need to learn something new everyday to stay up to date on new developments. A knowledge of these terms and how they work is essential to succeeding on the stock market. You take some time understanding stock market terms, or you may end up making big mistakes and losing big money. So, in-depth knowledge is an integral part of investing wisely, making gains and getting rich. The rest won't happen unless you know your way around the market. So, take your time and inform yourself and before long, you will see the dividends of your efforts show up in your bank account.
Just do your homework and pay attention and you'll be speaking the lingo in no time. - 23200
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