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.
The first two terms you may hear mentioned a lot are stocks being bullish or bearish. If a stock is a considered a bull then it is expected to do well in the market. On the opposite if a stock is bearish it is not going to increase a lot in the beginning and may fall in price. The next term used is a writer. A writer is anyone who sells a stock option. Someone who buys these options is called a taker.
Leverage refers to spending a small amount of money on an investment and getting a large return on your money. Buying stocks for margin means you can borrow money from a security or loan and then secure yourself from a fall in the value.
When you invest in a stock often it will also pay out a dividend. These dividends are paid out twice a year and they can be rolled over into more shares if you choose to do so.
Your bank account will benefit from the more knowledge you have about investing. The more market terminology you have the better you'll be able to make a wise investment in that decision.
In no time you'll be speaking the lingo if you pay attention to your market. - 23309
The first two terms you may hear mentioned a lot are stocks being bullish or bearish. If a stock is a considered a bull then it is expected to do well in the market. On the opposite if a stock is bearish it is not going to increase a lot in the beginning and may fall in price. The next term used is a writer. A writer is anyone who sells a stock option. Someone who buys these options is called a taker.
Leverage refers to spending a small amount of money on an investment and getting a large return on your money. Buying stocks for margin means you can borrow money from a security or loan and then secure yourself from a fall in the value.
When you invest in a stock often it will also pay out a dividend. These dividends are paid out twice a year and they can be rolled over into more shares if you choose to do so.
Your bank account will benefit from the more knowledge you have about investing. The more market terminology you have the better you'll be able to make a wise investment in that decision.
In no time you'll be speaking the lingo if you pay attention to your market. - 23309
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