(URL) Stock Market Glossary: Stock Index
Stock Index – A statistical gauge that uses a given number of stocks to measure changes in the overall stock…
Stock Market juice!
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.
Stock Index – A statistical gauge that uses a given number of stocks to measure changes in the overall stock…
Stock Splits – When a company divides each of the outstanding shares of a company thereby lowering the price per…
Street Name – Registering stock in the name of a broker who keeps the stock on behalf of the investor…
Subsidiary – A company that is 50% or more owned by another company, called a parent company.
Sustainability – The United States Environmental Protection Agency defines sustainability as: “Everything that we need for our survival and well-being…
Sustainable Investing – A term for investments that seek both positive financial returns and a positive long-term impact on society.…
Ticker – A worldwide electronic system that continuously shows the price and volume of a stock as it is traded.
Tombstone Ad – An announcement appearing in financial publications such as The Wall Street Journal announcing a company’s Initial Public…
Total Return – The annual percentage change in a stock investment resulting from dividends and changes in stock prices. The…
Trade Date – The date when the purchase or sale of a bond is transacted.
Treasury Note – An IOU issued by the U.S. Treasury when it borrows money for more than one year but…
U.S. Treasury Bonds – US Treasury bonds are backed by the full faith and credit of the United State government.…
Underwrite – The process in which an investment bank buys and then resells a company’s new issue of stock.
Underwriter – An investment banker, buys an entire new securities issue from the company or government offering it and resells…
Value – In investing “value” refers to how much a company is worth.
Volatile/Volatility – Indicates how much and how quickly the value of an investment, market, or market sector changes. The potential…
Volume – The number of shares traded in a company’s stock. Unusual market activity, either higher or lower than average,…
Wants – Non-essential items you desire and may or may not be able to afford (e.g. TV, gym membership, vacation).
Wealth – A measure of your total net worth, including savings, investments, and real estate, minus any debt you owe.
Yield – The rate of return on an investment paid in dividends or interest. It is expressed as a percent.