Going Long – Betting on the stock price will increase so that you can buy low and sell high.Īveraging Down – This is when an investor buys as the stock goes down so as to increase the price at which purchased.Ĭapitalization – This is what the market thinks a company’s value is.įloat – This is the number of shares that can be actually traded after deducting the shares held by insiders.Īuthorized Shares – This is the total number of shares that a company can trade. Volatility – This means how fast a stock moves up or down. Market Order – A market order is a type of order which executes as quickly as possible at the market price.ĭay Order – A day order is a direction to a broker to execute a trade at a specific price that expires at the end of the trading day if it is not complicated. Limit Order – A limit order is a type of order which executes at the price placed for buy or sell. Learn basics of stock market with Stock Market Made Easy by Market Expertsīull – A bull market is a market condition where investors are expecting prices to rise.īear – A bear market is a market condition where investors are expecting prices to fall. Sell – Getting rid of the shares as you have achieved your goal or want to cut down losses.Īsk – Ask is what people who are looking to sell their stocks are looking to get for their shares.īid – Bid is what you are willing to pay for a stock.Īsk-Bid Spread– Spread is the difference between what people want to spend and what people want to get. Basic Stock Market terms:īuy – This means buying shares or taking a position in a company. Stock market terminologies are industry-specific stock market terms that are frequently used when we read or talk about the stock market.Įxperts and novices often use these terms to talk about strategies, stock market charts, indices, and other elements of the stock market. Take a sneak peek at various online finance courses as per your need and interest. The second purpose that the stock market serves is to give the investors an opportunity to share in the profits of companies that are listed on the stock exchange. The stock market mainly serves two purposes.įirstly to provide capital to companies so that they can use this fund for expanding their business. The stock market is a type of exchange that allows traders to buy and sell stocks as well as companies to issue stocks.Ī stock represents the equity of the company whereas are the pieces of a company. So let’s get started with the stock market terms : Table of Contents