Term

Description

Stock Market

The centralized marketplace where buyers and sellers trade stocks.

Shares

Units of ownership in a company, representing a claim on part of the company’s assets and earnings.

Investors

Individuals or entities who allocate capital with the expectation of future financial returns.

Bull Market

A market characterized by rising prices and optimism among investors.

Bear Market

A market with falling prices, typically marked by pessimism and a downturn in economic activity.

IPO (Initial Public Offering)

The first sale of stock by a private company to the public, often marking its transition to a publicly traded entity.

Blue-Chip Stocks

Shares of large, stable companies with a history of reliable performance and dividends.

Penny Stocks

Low-priced stocks, often from small companies, with high volatility and higher risk.

ETF (Exchange-Traded Fund)

A type of investment fund and exchange-traded product, tracking an index or commodity.

Bullish

An optimistic outlook on a stock or the market, anticipating rising prices.

Bearish

A pessimistic outlook on a stock or the market, anticipating falling prices.

Portfolio

The collection of investments owned by an individual or entity.

Day Trading

Buying and selling financial instruments within the same trading day.

ROI (Return on Investment)

A measure of the profitability of an investment, expressed as a percentage.

Volatility

The degree of variation in trading prices over time; a measure of risk

Bullish Trend

A consistent upward movement in the prices of stocks or the market.

Bearish Trend

A consistent downward movement in the prices of stocks or the market.

Futures and Options

Financial derivatives that derive their value from an underlying asset, allowing traders to speculate on price movements.

Margin Trading

Trading with borrowed funds to magnify potential gains (or losses).

Leverage

The ability to control a large position with a relatively small amount of capital.

Short Selling

Selling a borrowed asset with the expectation of buying it back later at a lower price.

Stop-Loss Order

An order placed to sell a security when it reaches a certain price, limiting potential losses.

Market Order

An order to buy or sell a stock at the current market price.

Limit Order

An order to buy or sell a stock at a specific price or better.