Understanding Stock Market Terms

By Gilbert Stockton

The kind of jargon that is used by the stock market professional is often incomprehensible and very daunting to the newcomer in the field. But if you are getting into stock trading, it would a good time for you to start learning so that you don't get left behind. Understanding stock market terms is very important if you are to succeed at trading, but thankfully, it is not a very difficult task.

To begin with anyone that sells stock options is called a writer. Someone who then buys these stock options is called a taker. If the economy is doing well and a stock is considered to be a bull or bullish it is stock that is strong and may raise in value. If a stock is considered to be bearish then it may fall in value or stay the same.

Leverage refers to spending a small amount of money on an investment and getting a large return on your money. Buying stocks for margin means you can borrow money from a security or loan and then secure yourself from a fall in the value.

When you invest in a stock often it will also pay out a dividend. These dividends are paid out twice a year and they can be rolled over into more shares if you choose to do so.

These are just a few stock market terms. Many new terms are being created everyday. If you know the most about your market and understand the terminology better you will be in a good position to make a wise investment. So do your research and it will reflect in your bank account.

Just do your homework and pay attention and you'll be speaking the lingo in no time. - 23210

About the Author:

Read about how you can use Penny Stock Tips to earn thousands of dollars. Trading Penny Stocks is the fastest way to make tons of money.