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Terms
These
are some terms that everyone should know when going to the
NYSE, so you will have a good idea of what is going
on.
Bull
Market: Rising stock prices.
Bear Market: Falling stock prices.
Broker: A person licensed to sell stock.
Capitalization: The value of a company equals the
market price of common shares multiplied the numbers of
shares that have been issued.
Capital Gains: Profit made in selling a stock.
Commodities: Raw materials used in making other
goods.
Common Stock: Pieces of ownership of a public
corporation.
Default: Failure to pay back a debt.
Dividends: Money or securities given to the
shareholder.
Limit Order: A marker order that shows the highest or
lowest price that the customer wants to trade securities
at.
Liquidity: The ability to convert assists into cash
without a noticeable loss.
Market Order: Authorization for a broker to sell or
buy securities for the best price at the time.
Mutual Fund: An investment company which sells shares
to the public and uses the money gained to buy stocks,
bonds, et cetera.
Odd lots: Stocks sold in proportions less then 100
shares. It costs less to trade in round lots.
Open order: An order that does not expire at the end
of the day.
Round lots: Stocks sold in 100 share groups.
Securities: Documents showing ownership or debt which
can be sold or bought.
Share: A bought portion of a company.
Speculator: An investor looking to make profit.
Stock Exchange: A place where stocks and bonds are
traded.
Stock Option: A signed agreement giving the owner the
right to buy or sell a certain amount of shares of a
particular stock at a set price by a certain date
Transaction costs: The costs of trading securities
plus the charge of the broker's taxes and commission.
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