Buying Shares – Chapter 19: Glossary words to learn

This is chapter number 19 out of 19. Read the rest:

Read Buying Shares – Everything that you Wanted to Know but were too Scared to Ask – Chapter 1: Introduction
Read Buying Shares – Chapter 2: What are Stocks and Shares?
Read Buying Shares – Chapter 3: Different Classes of Stocks
Read Buying Shares – Chapter 4: What affects ‘Stock Prices’?
Read Buying Shares – Chapter 5: Stock Markets
Read Buying Shares – Chapter 6: Stock Exchanges, Why are companies listing on a stock exchange today?
Read Buying Shares – Chapter 7: Stock Indexes – What do they stand for?
Read Buying Shares – Chapter 8: How do I Trade Shares?
Read Buying Shares – Chapter 9: What kind of a Trader are you?
Read Buying Shares – Chapter 10: Investing Methodology: Planning Trades and Picking Stocks
Read Buying Shares – Chapter 11: Placing an order – The technicalities involved, Step 1 – Open a Share Dealing
Read Buying Shares – Chapter 12: Step 2 – Research the Stocks
Read Buying Shares – Chapter 13: How to Read Quotes of Shares
Read Buying Shares – Chapter 14: Buying and selling shares- how’s it done?
Read Buying Shares – Chapter 15: Buying Shares – The Rules
Read Buying Shares – Chapter 16: Tips for Stock Market Investing
Read Buying Shares – Chapter 17: The Difference between Stocks and Shares
Read Buying Shares – Chapter 18: Q & A session

Bear Market/Bearish: When the stock market is in a stretched period of negative stock prices- can occur during recession.

Broker: A person who trades an investment on your behalf and takes a commission.

Bull Market/Bullish: When the stock market is in a period of increasing stock prices and low unemployment figures. 

Dividend: A dividend is a part of a company’s profits that is paid back to shareholders on either a quarterly or yearly basis.

Exchange: An exchange is a place in which futures, options and shares in stocks, indexes, bonds, and commodities are traded. 

Float: To list a company on the Stock Exchange, meaning the company becomes public and shares can be bought and sold.

Index: An index is a standard which is used as an indication marker to which economic performance is calculated and compared against. Eg. FTSE 100

Institution: A term used to explain any brokerage house, or company that is not an individual.

Long: To buy a share

Margin: A margin account allows a person to have a loan of money from a broker to buy securities. The variation between the sum of the loan, and the cost of the securities, is called the margin.

Market Maker: A market maker is a bank, person, brokerage, or institution that looks after a permanent firm proposal and request price on a certain stock. This means that they are ready at any moment to give a particular price to trade a stock.

Sector: A group of stocks in the same industry group ie. the financial sector

Short: To sell a share

Spread: The different between your buying price and selling price.

Volume: The number of shares of a stock bought or sold in a certain time period.