Stock Trading Terms You must be familiar with

Every field of human endeavor has its own terminology associated with it, the stock market is not exempt. Therefore, this article is intended to familiarize you with some of the day-to-day stock trading terms.

a. share it.

b. The total shares of the companies that are divided into bits or slices purchased by institutions or individuals. B. Securities. The stock you hold is protected by the extent of the regulatory investment. Once a share is created, it can not be destroyed, stolen, and can only be transferred.

c. fair. It means that the distribution and sale of the stock take place fairly, that is, once the price is fixed; it is the same for everyone, wherever you live, not the price of the property investment affected by the location

d. stock. Describe the total amount of shares held by an individual in a company.

e. Unity. Means the stock market from any moment, when the rally begins.

f. Blue chips. Describe the stock exchange of solid, high quality stocks Nestle, First Bank, Cadbury, Nigeria Brewery, Zenith Bank. The term is derived from the use of blue chips in gambling, especially in poker, which has the highest value

g. correct. The change in the other direction (usually not so fast) as the market moves rapidly in one direction.

h. Long pull. What do investors think is the stock price before they sell?

i. Pull back. When the price hike reaches its peak, decelerates, then stops and begins to fall or fall, and people begin to sell at this point

j. Out of the trough. When prices go lower, investors start buying again

k. fluidity. When we talk about the liquidity of the stock exchange, we are talking about how easy and fast conversion of stock into cash. If it is very mobile, it means easy trading in stocks

Bulls Trends. Upward movement or trend. This means the market is rising and performing well, as reflected in share prices.

n. Bullish. Investors believe that market prices will rise

o. Bearish. Investors believe that market prices will fall

麈. Investors want to profit from the new shares issued. He bought the stock before going public. And then sell them at a higher price shortly after their listing.

q. Automatic trading. Is the purchase and sale of shares on the computer? Dealers will enter the electronic trading system on the computer to place orders for buying and selling stocks. The computer automatically performs transactions with the best sales and purchase prices.

r. Broker Contract Note. The broker's contract statement is very important. It shows everything the stockbrokers do for you to trade. It tells you that you have to pay the stockbroker how much he buys for you. If you have sold the stock, it tells you how much you will receive your stock for sale

s. Certificate of Conformity. Shows the number of shares you have. This is a very important document. You must keep it safe.

t. capital market. Refers to the stock market, which is a platform from the investment public to raise funds or capital to meet the company's financial needs

u. currency market.

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