The decision to trade and the method of trading is for the reader alone to decide. A stock market may be a physical place, sometimes known as a stock exchange, where brokers gather to buy and sell stocks and other securities. Heres a glossary of 40 key stock trading terms for beginners. Stock market terminology as with anything else, mastering the stock market means mastering the lingo and for traders, that can be a bit confusing at first. Making sense of financial terms and jargon understanding the language of business, finance. Fixed asset a physical asset used in the running of a business. As with anything else, mastering the stock market means mastering the lingo and for traders, that can be a bit confusing at first. Wall street oasis finance dictionary below you will find an extensive and evergrowing list of finance terms and definitions, as well as financial abbreviations, often found in the forums of wall street oasis and in the finance community. Beta a measurement of the relationship between the price of a stock and the movement of the whole.
Go through the glossary of financial terms and know the meaning of all financial terms through their definitions here at the economic times. Financial markets studies, based on capital market theory, focus on the financial system, the structure of interest rates, and the pricing of financial assets. The most comprehensive investing glossary on the web. Before investing in a market before investing, it is always wise to learn the basics of stock market.
Managing finances can be one of the toughest and most frustrating aspects of running a business. Financial statement a summary of a businesss financial position for a given period. We have expanded this years edition of the investment dictionary by introducing several terms since our last update in 2012 that cover industry updates, as well as other terms not covered previously. With this handy guide, market terms will start making way more sense. I would like to thank all my students, previous and current, for their usage of the guide. This glossary is designed to help you understand some of the more common investment and financial terms you may encounter. Are you looking to invest more in the markets and dont know where to start. Financial statements can include a profit and loss, balance sheet and cash flow statement. More than 5, 000 terms defined and explained barrons business dictionaries downes, john, goodman, jordan on. In the us, the colonial government used to sell bonds in order to finance. In the world of business and finance there is a lot of jargon, or normal everyday words but with different meanings. Do research on the stock market through regular reading of financial literature, attending investment courses and seeking a qualified experts like a stockbroker advice. Auction market a market where buyers and sellers enter bids and offers simultaneously, such as the new york stock exchange.
Understanding a few basic financial terms will go a long way in helping you get the most out of the site. The investor must be familiar with them in order for him to be able to get a. By leaving out all the confusing wall street jargon and explaining things in. Chapterv financial markets in india financial markets in india comprise the money market government securities market, capital market, insurance market, and the foreign exchange market. Speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. I would like to receive nasdaq communications related to products, industry news and events. This glossary of terms has been produced to aid beginning traders in the challenging task of becoming familiar with new vocabulary and terminology. You can always change your preferences or unsubscribe and your contact information is covered by.
Dont worryusing doesnt require a degree in finance. Bear market a bear market is a prolonged period of falling stock prices, usually marked by a decline of 20% or more. It is one of the important constituent of capital market. Beta a measurement of the relationship between the price of a stock and the movement of the whole market. While lecturing on certain topics, i would occasionally observe puzzled faces upon mentioning some basic financial terms.
The term is also used more broadly to include electronic trading that takes place over computer and telephone lines. In this article we will go over the basic stock market terms. Personal finance for dummies is the perfect book for people who feel guilty about inadequately managing their money but are intimidated by all of the publications out there. Read further to learn 37 essential stock market terms that you need. Before you go out into too many technicalities, here is a little glossary with few key. Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions. In the us, the colonial government used to sell bonds in order to finance the war. The companies selected typically are in different industries and different geographic regions. Beta a measurement of the relationship between the price of a stock. When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market. The financial sector at that time was much unstructured and its scope was limited only to bonds, equity, insurance, commodity markets, mutual and pension funds. The idea of writing a guide like this was conceived when i first taught an introductory finance course at the university of saskatchewan in 1992. An important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets.
A benchmark that is used as a reference marker for traders and portfolio managers. A shortterm credit investment created by a nonfinancial firm and guaranteed by a bank to. Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market. Here are 10 financial terms to help conquer the basics. The additions reflect the everchanging face of investment markets. Stock market is an organized market for the purchase and sale of industrial and financial security. Kingdom of saudi arabia capital market authority guide for investment terminology. Learn the most commonly used terms in finance, business and the stock market. Explaining stock market terminology in the following conversation between two work colleagues, peter explains to juan how the stock market works and the meaning of some different words and terms used. Ev includes in its calculation the market capitalization of a company but also shortterm and longterm. Enterprise value ev is a measure of a companys total value, often used as a comprehensive alternative to equity market capitalization.
Also included here explanation of stock market terms and jargon used by people involved in trading stocks and. Stocks are a part, if not the cornerstone, of nearly any investment portfolio. Keep this list handy when screening for potential trades on stockstotrade. In order to structure the security market, a regulatory. Adviser a financial planner or financial intermediary who offers advice on personal financial. The investor must be familiar with them in order for him to be able to get a clearer picture of the components, instruments and reports in the financial markets. Understanding the stock market can be a daunting task for any new investor. Bear market this is trading talk for the stock market being in a down trend, or a period of falling stock prices. Experts and novice often use these terms to talk about strategies, charts, indices and other elements of the stock market. Glossary of commonly used stock market terminologies. An alphabetical glossary of financial and business terms, plus their definitions. Direct investing in the stock market can result in financial loss. This is trading talk for the stock market being in a down trend, or a period of falling stock prices. For example, if a stock in your portfolio falls in price.
Auction treasury the issuance of new treasury bills, notes, and bonds at stated intervals by the federal reserve. The advancedecline line is considered the best indicator of market movement as a whole. Improve your financial literacy with this dictionary of financial terms. With banks having already been allowed to undertake insurance business, bane assurance. Stock market terminologies are industryspecific terms which are frequently used when we read or talk about the stock market. Financial year a 12month period typically from 1 july to 30 june.
We have compiled articles and tutorials on the share market basics. Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market operations. Most of todays commonly used terms in an easytofind glossary format. Welcome to the comprehensive list of stock market terms and their definitions, designed for investors at all levels. Overview of financial markets and instruments financial markets and primary securities financial markets securities can be traded on. Chapter 1 an overview of financial management what is finance. Established by australian stock exchange asx at 500 points in january 1980, it was used as the predominant measure of the overall performance of the australian sharemarket. Stock market glossary stock trading terms dictionary. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice.
Recently, the derivatives market has also emerged1. Introduction an important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets. The great recession and the years following it have brought business and financial terms more frequently to the pages of nonspecialist newspapers. Having launched it originally in 2004 we have now updated it with modern. With this handy guide, market terms will start making way more. Also included here explanation of stock market terms and jargon used by people involved in trading stocks and shares. A financial terms by letter nasdaq nasdaq stock market. Financial glossary business terms and definitions market.
Assess the companys financial wellbeing by looking at their financial. Stock market terms speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. Balanced fund mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and.
Below is an elementary guide of basic terms which are frequently used in the stock market. A bull market is a prolonged period where investment prices rise faster than their historical average, as a result of economic recovery, boom, or investor psychology. Financial assets such as fixed deposits with banks, small. Trading versus investing not only is technical analysis more short term in nature that fundamental analysis, but the goals of a purchase or sale of a stock. Stock indices such as dowjones industrial average only tell us the strength of 30 stocks where as the advancedecline line provides much more insight.
Glossary of commonly used stock market terminologies arbitrage the business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in. An asset is any resource that is expected to provide. Glossary of commonly used stock market terminologies arbitrage the business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in the other or vice versa. Keeping up with the increasing number of investment products and services in the marketplace today can be confusing. Stock market terms, investment terminology and definitions. Auction market a market where buyers and sellers enter bids and offers simultaneously, such as the new york stock. Your pocket guide to understanding financial terms. The all ords was made up of the weighted in terms of market capitalization share prices of approximately 500 of the largest australian companies.