Stock Trading Vocabulary in English
Basic Concepts
The market where stocks are bought and sold.
A place where securities (stocks, bonds, etc.) are bought and sold.
A unit of ownership in a company.
The current price at which a particular stock can be bought or sold.
A unique series of letters assigned to a security for trading purposes.
A person or firm that buys and sells stocks on behalf of clients.
Types of Stocks
Represents ownership in a company and voting rights at shareholder meetings.
Usually pays a fixed dividend and has priority over common stock in liquidation.
Stocks of wellestablished, financially stable companies with a history of reliable performance.
Stocks of companies expected to grow at an aboveaverage rate.
Stocks of companies considered undervalued based on fundamental analysis.
Stock Trading Strategies
A longterm investment strategy where an investor holds onto a stock for an extended period.
Buying and selling stocks within the same trading day to take advantage of shortterm price fluctuations.
Holding a stock for a few days or weeks to profit from an anticipated price move.
Investing a fixed amount of money at regular intervals, regardless of the share price.
Market Analysis
Analyzing a company's financial statements and industry trends to determine its value.
Analyzing stock price and volume data to forecast future price movements.
The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding.
The annual dividend payment divided by the stock price, expressed as a percentage.
Risk Management
Spreading investments across different assets to reduce risk.
An order placed with a broker to sell a stock when it reaches a certain price, limiting the investor's loss.
The ratio of potential profit to potential loss in a trade.
Conclusion
Stock trading involves various terms and strategies that can be complex. It's important to understand these concepts before investing in the stock market. Consider consulting with a financial advisor or doing thorough research before making investment decisions.
