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How many shares get traded or a given time period is referred to as volume. SectorĪ sector is a certain part of the economy or a group of related stocks. For example, exiting your order to buy a certain stock. ExecutionĮxecution refers to entering or exiting the market. DividendĬompanies that make large and regular profits will often pay out a portion of this as a dividend to their stockholders. When using margin, you borrow money to make larger investments. There are many stock indexes around the world, and there are indexes that show different parts of the economy. An example of a stock index is the Dow Jones formed with the 30 largest public companies listed on the US stock exchange. IndexĪn index is a benchmark normally designed to show you a certain sector or part of the economy. PortfolioĪfter you start to build up a few investments, it becomes known as a portfolio. When looking to trade the stock market, you will need to use a registered stockbroker who will buy and sell the stocks for you. A day trader is not holding their trades past the markets open. Day Tradingĭay trading refers to a certain style of trading where a trader is looking to enter and exit their trades before the market closes each day. When a company is looking to raise more money from the public, it can have a secondary offering. When a private company gets listed on the stock exchange and becomes a public company, it has an initial public offering or IPO.
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Floatįloat is the number of shares overall that can be publicly traded. CapitalizationĬapitalization is how much all of the company’s shares are worth overall. This makes your overall average entry price lower. Averaging DownĪveraging down is a common strategy in the stock market where you continually buy more of a stock as the price moves lower. A highly volatile market is a market that sees large and fast swings higher and lower.
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Volatility is the amount prices are moving higher and lower. Market OrderĪ market order is a type of order that will enter you into a trade or exit you from your position as quickly as possible at the best available price on offer. When placing a buy limit order, you are placing an order below where the price currently is and then looking for the price to bounce higher once you have been entered. They are also normally the leaders of their industries. These companies often make the largest profits and pay the biggest dividends. Blue Chip Stocksīlue-chip stocks are the largest and most significant companies listed on the stock exchanges. A bearish market is a market that is moving lower. A bullish market is a market moving higher.Ī bear is someone expecting the market to move lower. BullĪ bull is someone who is expecting prices to move higher. This is a wide-ranging report showing cash holding, account management, and the company’s overall financials. Annual ReportĮach publicly listed company will prepare an annual report for the market. The stock symbol represents the shortened symbol for the larger stock name. The spread is the difference between the bid and ask price and often what you will be paying to your broker to make your trade. The ask price is the price people are looking to sell their stocks for. The price you are willing to pay for a certain stock. To sell your shares that you own after making a profit or to try and minimize a loss. The Most Common Stock Market Terminology Buy