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STOCK MARKET TERMS FOR BETTER INVESTING

STOCK MARKET TERMS FOR BETTER INVESTING

Stock investing can seem difficult, but this list of simple terms will give anyone a jumpstart on investing in stocks.


ASK
Also called Offer Price, Ask Price. Asking Price is the lowest price an investor will accept to sell a stock. If you're buying, this is the lowest price that you can buy shares of stock.

BID
It is the highest price that a buyer is willing to pay for a stock. If you're selling, this is the highest price that you can sell shares of stock.

BEAR MARKET
A stock market where stock prices are falling for a prolonged time. A bear is a "Debbie-Downer" who expects a price decline of stock or the overall market to decline.

ANNUAL REPORT
Don't be afraid of the annual report as it contains info about finances, history, competition, risks, and everything you could need to know about a company before investing in it. If you're thinking about buying a particular stock, search for the company's annual report online and dive into a wealth of knowledge. If you can't find the most recent year's annual report then look for the most recent year's 10-K (a more concise version of the annual report).

BULL MARKET
A market in which stock prices are rising for a prolonged time. A person who expects the share price of stock or the market to rise is called a bull.

CLOSE PRICE
The stock price at the end of the trading day.

DAY TRADING
Buying and selling a stock within the same trading day. These traders are called "active traders" or "day traders."

GROSS
It is the total amount payable without any tax deduction. For example, gross income is the total income that your employer pays you before taxes. Net income is your income after taxes. Companies that you might invest in also have gross income (gross profit) and net income (net profit).

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