(URL) Stock Market Glossary: Limit Order
Limit Order – An order to buy or sell stock at a given (or better) price.
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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.
Limit Order – An order to buy or sell stock at a given (or better) price.
Liquidate – Liquidate means converting property or assets into cash or cash equivalents by selling them on the open market…
Liquidity – The ease of converting an asset-in this case, stock-into money in a timely fashion with little or no…
Listing Requirement – Listing requirements are the standards a corporation must meet to have its stock or bonds traded on…
Long Position – The condition of owning stock. The value of a long position is a stock’s current share price…
Long-Term Goals – Something you want to do in the future, usually several years away (e.g. saving for college, buying…
Loss – The amount by which a company’s costs exceed its sales.
Management Buyout – When the management of a corporation buys the controlling shares in the company.
Margin – Margin is the money borrowed from a broker to purchase an investment and is the difference between the…
Margin Account – A brokerage account that allows an investor to borrow money or stocks from a broker.
Margin Agreement – A legal agreement between a customer and a broker to open a margin account.
Margin Buying – Using money borrowed from a broker to buy stocks.
Margin Call – When the value of the collateral falls below the lender’s maintenance requirement, the lender generally will “make…
Market – Any method enabling people to buy and sell with one another. A market does not necessarily have a…
Market Capitalization (Market Cap) – The aggregate dollar value or market value of all of a company’s outstanding shares based…
Market Maker – A business that maintains bid and ask prices for a stock and stands ready to buy or…
Market Order – An order to buy or sell stock at the current market price.
Maturity – The date when the principal amount of a security is payable.
Merger – This occurs when two or more companies combine into one company while all the parties involved mutually agree…