Understanding Stock Market Terminology
Stock market terminology is often confusing and difficult to understand. This is especially true if you are a new investor. Even though these terms are difficult to understand it is in your best interest to learn these phrases to help you in making wise investment decisions.
To begin with anyone that sells stock options is called a writer. Someone who then buys these stock options is called a taker. If the economy is doing well and a stock is considered to be a bull or bullish it is stock that is strong and may raise in value. If a stock is considered to be bearish then it may fall in value or stay the same.
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.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
Stock market terms are multiplying with every passing day and you need to learn something new everyday to stay up to date on new developments. A knowledge of these terms and how they work is essential to succeeding on the stock market. You take some time understanding stock market terms, or you may end up making big mistakes and losing big money. So, in-depth knowledge is an integral part of investing wisely, making gains and getting rich. The rest won't happen unless you know your way around the market. So, take your time and inform yourself and before long, you will see the dividends of your efforts show up in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23208
To begin with anyone that sells stock options is called a writer. Someone who then buys these stock options is called a taker. If the economy is doing well and a stock is considered to be a bull or bullish it is stock that is strong and may raise in value. If a stock is considered to be bearish then it may fall in value or stay the same.
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.
Stocks and shares pay out whats called a dividend. It is a portion of money they company earns paid out to its stockholders. This dividend can be used to purchase more stocks if you choose to roll it over.
Stock market terms are multiplying with every passing day and you need to learn something new everyday to stay up to date on new developments. A knowledge of these terms and how they work is essential to succeeding on the stock market. You take some time understanding stock market terms, or you may end up making big mistakes and losing big money. So, in-depth knowledge is an integral part of investing wisely, making gains and getting rich. The rest won't happen unless you know your way around the market. So, take your time and inform yourself and before long, you will see the dividends of your efforts show up in your bank account.
The best way to learn the lingo is to get out there and read as much information as you can and ask many questions. - 23208
posted by X - Men @ 5:19 AM
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