Primary Stock Trading – Basic Stock Terminology
Stock terminology may be confusing in primary stock trading. This is not to say that these terms are misleading, but because so many people know. If you take the time to learn some of these beginner stock trading keywords once, you will be set at any time! The following is a list of the most common terms you should be familiar with.
Market / Stock Market / Stock Exchange – Professional Broker The Stock Exchange of Stocks. I recommend sticking to the New York Stock Exchange, Dow Jones and Nasdaq junior stock trading.
Trading Hours – Time at which stocks can be traded. In the United States, the transaction starts at 9:30 am Eastern Time and ends at 4:00 pm ET.
Market Maker / MM – A company that trades shares between other companies or individuals.
Stock Code – Unique letter-based notation used to identify company shares.
Share – The unit of ownership of the company's shares.
Authorized Shares – The total number of shares owned by the Company.
Outstanding Shares – Shares that can be bought or sold in the market.
Restricted Stock – A stock that can not be traded for a period of time.
Floating – Investments in stocks that can be traded by the public.
BUY – Buy stocks of company stock.
Sell – Sell stocks of company stock.
Commission – The fee paid to your broker to facilitate stock purchases or sales.
Tender – The price at which the Broker will purchase the Shares (ie the sale of the Shares will be executed at the Tender Price).
Inquiries – The price at which the Broker will sell the Shares (ie the purchase of the Shares will be executed at the Ask Price).
Spread – The difference between the bid and ask prices.
Day – An order to buy or sell a stock will be canceled if it does not expire at the end of the trading day.
Good Cancel Cancel / GTC – Orders to buy or sell stocks will remain open for 30 to 60 days (varies by broker).
Limit Orders – Buy or sell stock orders until the price reaches a specified level or higher. Will pass.
Trend – The general direction in which a stock moves up or down.
Bearish – Describe an expected downward trend in the stock.
Bullish – Describe an upward trend in the stock.
Few terms will give you a good start Beginners Stock Trading . If you understand these basic stock terms, talking about the stock market is easier. Learning them will contribute to your discussion, your research, and understanding useful tools.