Here are some basic stock market terms to help better your vocabulary and stock market acumen. Hope this helps you along your journey into the financial world!
Share: A portion of the total equity offered by a publicly traded company.
Volume: The number of share’s that have changed possession in a given day.
Market Cap: The value of a company that is publicly traded. (Total Shares X Price)
Initial Public Offering (IPO): The first offering of a company’s equity to the public at a set share price.
Index: A composite of publicly traded companies you can buy in to.
Bull Market: When the total average of the stock market is increasing.
Bear Market: When the total average of the stock market is decreasing.
Dividend: If a publicly traded company is cash positive, they pay their shareholders when a dip in their share price occurs.
Bid: The price a trader wants to buy a stock for in correlation the price that a seller wants to sell said stock for.
Ask: The price the seller of the stock wants the buyer to pay per share.
Retail Investor: An individual investor not buying or selling equity (stock) for any institution. An everyday investor.
Broker: An individual who buys and sells an investment for you, in exchange for the commission.
Open: The time that the stock market opens. The United States Market opens at 9:30 am EST (Mon-Fri).
Close: The time that the stock market closes. The United States Market closes at 4:00 pm EST (Mon-Fri).
High: A milestone that a stock or fund reaches (the highest its share price has reached).
Low: The ultimate low that a stock has reached its recorded history.
Margin: When you borrow money from a broker for the sake of an invest.
Moving Average: A stock’s average price per share over a given time.
Portfolio: The collection of investments that an investor owns.
Volatility: The amount that a stock has fluctuated over a given period.
Ticker (or Symbol): The abbreviation attributed to a publicly traded company.
Sector: The categories of companies in the stock market. (Ex. Apple (APPL) is part of the Technology sector.
MS Money Move and its Chief Operating Officer who is a scientist and individual investor, as well as its affiliates are not registered financial advisors. Our posts should serve as educational material to help you conduct due diligence research. Posts and articles are not directives or recommendations to invest in any security. We reserve the right to buy or sell any security for ourselves without any notification except when required by law. We are not responsible for the action of our affiliates. Investment theses may change due to the variable nature of the securities market. Because of this there is great risk when investing in stocks and options which can result is capital loss. Additionally, past performance by MS Money Moves or any security is not a predictor of future performance. Everyone should conduct their own research and due diligence before making an investment decision. We recommend you consult a financial advisor regarding any investment action.
The biotech sector is especially volatile. Stock prices may fluctuate substantially based on material or nonmaterial developments. We encourage everyone to familiarize themselves with clinical trial processes, relevant terminology, FDA/SEC rules and regulations, and the general processes of drug & therapy development/approval. Always do independent research in a security prior to investing.