(URL) Stock Market Glossary: Security
Security – A financial instrument (stock, bond, option, etc.) that holds monetary value.
Category: Learn
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.
(URL) Stock Market Glossary: Sell
Sell – The term refers to the process of liquidating an asset in exchange for cash (Investopedia definition).
(URL) Stock Market Glossary: Settlement Date
Settlement Date – When the transfer of a security from seller to buyer is complete, and the trade is considered…
(URL) Stock Market Glossary: Share
Share – A share is a unit of ownership in a corporation or mutual fund.
(URL) Stock Market Glossary: Short Cover
Short Cover – Buying stock in order to repay a broker for the shares borrowed when the stock was sold…
(URL) Stock Market Glossary: Short Position
Short Position – The condition of having sold a stock short. The value of a short position is a stock’s…
(URL) Stock Market Glossary: Short Sale
Short Sale – The sale of stock borrowed from a broker. Short sellers believe a stock’s price will drop and…
(URL) Stock Market Glossary: Short-Term Goals
Short-Term Goals – Something you want to do in the near future (e.g., bike, shoes, video games).
(URL) Stock Market Glossary: Simple Interest
Simple Interest – Interest calculated at regular intervals solely on principal. For example, if you have $100 in a savings…
(URL) Stock Market Glossary: Small-Cap Stock
Small-Cap Stock – Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion.…
(URL) Stock Market Glossary: Socially Responsible Investing (SRI)
Socially Responsible Investing (SRI) – A synonym for sustainable investing.
(URL) Stock Market Glossary: Sole-Proprietorship
Sole-Proprietorship – A company owned and run by one individual who receives its profits or bears its losses. A proprietorship…
(URL) Stock Market Glossary: Specialist
Specialist – A member company of a stock exchange that acts both as an auctioneer and a trader to match…
(URL) Stock Market Glossary: Speculative
Speculative – Stocks that are highly unpredictable. Stock investments are volatile and can lead to large profits or severe losses.…
(URL) Stock Market Glossary: Spin-Offs
Spin-Offs – Occurs when an existing publicly owned company sells a part of its assets or distributes new shares in…
(URL) Stock Market Glossary: Spread
Spread – The difference between the current bid and ask prices for a stock at any given time.
(URL) Stock Market Glossary: Standard & Poor’s 500 (S&P 500)
Standard & Poor’s 500 (S&P 500) – A popular measure of stock prices consisting of 500 large companies that represent…
(URL) Stock Market Glossary: Stock
Stock – A type of security that signifies ownership in a corporation and represents a claim on a part of…
(URL) Stock Market Glossary: Stock Exchange
Stock Exchange – A market in which stocks are bought and sold. Where brokers gather to buy and sell stocks…
(URL) Stock Market Glossary: Stockholders/Shareholders
Stockholders/Shareholders – One who owns shares in a business.