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As part of our educational enrichment side of MS Money Moves, here is the latest addition of basic stock market vocabulary that every investor should know!
Annual Report: A collection of a company’s financial statements and report of operations for the duration of the fiscal year.
Averaging Down: Buying more of a stock when it is below the price you originally paid for it.
Bonds: Notes issued by a company or government to its lenders for a specified rate of interest and duration.
Book: An electronic recording of all pending buy and sell orders of a stock.
Capital Stock: Shares representing ownership in a company.
Cash Invest: The amount of un-invested cash in your portfolio.
Dilution: A reduction in the ownership percentages or shares of stock.
Expiration Date: The day that an option expires.
Industry: A an aggregate of companies that pertain to a certain topic. For example, a biotech company is the party of the Healthcare Industry while its sector is biological technology.
Insider Trading: When insiders of a company trade their company’s stock, or when someone trades a stock based off of knowledge that is not publicly accessible.
Institutional Investor: A large organization that makes substantial plays in the stock market.
Invested Capital: Total amount of money raised by a company by offering equity to shareholders s and debt to bondholders.
Liabilities: The debt and financial obligations of an individual or company.
Limit Order: A buy or sell order of a stock at a specified price.
Stop Loss: An order through a broker to sell a stock automatically once it reaches a certain part.
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.