(URL) Stock Market Glossary: Bull Market
Bull Market – A prolonged period of rising stock prices.
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Learning to navigate the stock market as a new investor can be intimidating, but getting familiar with basic stock market terms can get you started sooner than you think. Understanding these fundamental concepts is key to making smart investing decisions, keeping a pulse on the market, and eventually taking on more complex trading strategies. Use the following terms to get a jump start on learning basic stock market vocabulary and create a strong foundation for your long-term wealth goals.
Bull Market – A prolonged period of rising stock prices.
Business – A person or group that makes something for other people to buy. Most businesses try to earn a…
Buy – A term used to describe the purchase or acquisition of an item or service that’s typically paid for…
Buying on Margin – Buying stocks by paying only a percentage (a margin) of the purchase price and borrowing the…
Buyout – When the majority of a company’s shares of stock (controlling interest) are bought.
Certificate of Deposit (CD) – A special form of deposit offered by banks that generally pays compound interest for a…
Closed-End Fund – Like open-end mutual funds, these are collections of securities managed by a professional investment advisor. Unlike open-end…
Closing Price (Close) – The last price at which a stock is traded on a particular day.
Collateral – Property that a borrower must legally turn over to a lender if the borrower cannot repay a loan.
Commission – A fee that brokers earn by completing trades for investors. A commission is usually based on the number…
Common Stock – A type of security, or financial instrument, that represents a fractional ownership of the issuing company. If…
Company – A business formed to manufacture or supply products or services for profit.
Compound Growth – Growth from earnings received on reinvested earnings as well as on the initial amount invested.
Compound Interest – Interest paid on the principal and the accrued interest. Interest earned on an investment is added to…
Consensus – To reach team agreement on a decision.
Conservative Strategy – Investments in fixed income and preferred stocks.
Consumer Price Index (CPI) – A measure of the level of prices paid by the average American consumer. Percentage changes…
Corporate Bonds – Bonds are major sources of corporate borrowing. Debentures, the most common type of corporate bond, are backed…
Corporate Governance – It refers to the ethics of the corporate structure of a given company, like the policies on…
Corporation – A company legally separate from stockholders who own it and the managers who run it.