Explanation of The Most Important-Terms Used in The Stock Exchange
Explanation of Terms Used in The Stock Market
Many trading enthusiasts are looking for an explanation of the most important terms used in the stock exchange in order to make it easier for them to deal with them.
Whether the person is new in the field of investment, or an experienced person with experience in it, it is necessary and useful for him to have a strong vocabulary that is within his reach. This glossary is used to explain and simplify any term related to the stock exchange, which helps him expand his vocabulary of terms. And that anyone who wants to start investing in a field such as stock exchanges and digital currency markets, must own that dictionary,Because of its great importance in explaining the terms of the Stock Exchange. It is one of the most important things that a person wishing to enter the field of investment must be fully aware of. The beginner must be aware of the meanings of the terms that are used in the field of stock exchanges, in order to make it easier for him to deal within the field. As a result of the above, we have devoted this article to explaining the most important terms used in the stock market and digital currency markets.
The most important terms used in the stock exchange
- Average Down (Averaging Down): It means that the investor buys a lot of shares with a decrease in their price, which reduces the average purchase price.
- Bull Market: It means a rise in the stock price, meaning that the stock market is in an upward trend.
- The alcohol market (Bear Market): It is the opposite of a bull market. It means that there is a decline in the stock price, that is, the stock market is in a downward trend.
- Beta: It is a measure of the relationship between the stock price on the one hand, and the movement of the market as a whole on the other hand. For example, if stock (X) has a beta of 1.5, this means that for every 1 point move in the market, there is a corresponding 1.5 point move in the price of stock (X).
- Broker: It is a person who buys or sells you a specific investment, in exchange for a fee or commission.
- Exchange: It is a place dedicated to trading many different investments. The most famous of these places in the United States of America is the New York Stock Exchange, as well as the Nasdaq Stock Exchange.
- Day Trading: It means the practice of buying and selling on the same day on which trading took place, i.e. before the closing of the markets on the same day.
- Traders who practice day trading can be called active traders, or day traders.
- Blue Chip Stocks: One of the most important terms used in the stock market. It is a term used to refer to large companies and organizations that are leaders in the industry. That is, it provides a stable record of payments of a large amount of profits. In addition, it has a good reputation for its financial management, which is done soundly and securely.
- Dividend: It means that some companies allocate part of their profits to the people who own shares in them. This is done on a quarterly or annual basis, noting that not all companies do this.
It is a type of account that a person must open between him and a brokerage firm in the stock market. This type of account is subject to tax, and it is one of the most important terms used in the world of the stock market and stock markets.
A person can deposit his money in the account by check or link it to his own savings account in the bank he deals with. After that, he will be able to use this account to obtain various types of investments.
A Brokerage Account can hold a number of different investments. Examples of such investments include:
- Funds that are traded on the stock exchange.
- Bonds of various companies.
- mutual funds.
- Stocks are either normal or premium.