11 Key Terms - Part 1

Question 1

Means to take a position or to buy shares in a company

Answer 1

Buy

Question 2

Getting rid of the shares that you purchased, either because you’ve achieved your goal or because you want to cut your losses

Answer 2

Sell

Question 3

What you’re willing to pay for a stock

Answer 3

Bid

Question 4

What people selling stocks are looking to get for their shares

Answer 4

Ask

Question 5

The difference between what people have to spend and what people want to get.

Answer 5

Bid-Ask Spread

Question 6

A market condition that means stock prices are expected to rise

Answer 6

Bull Market

Question 7

One in which investors expect stock prices to fall. This is where short sellers shine.

Answer 7

Bear Market

Question 8

This provides instruction to only execute at or under a purchase price or at or above a sale price. Always use _______, not market orders.

Answer 8

Limit Orders

Question 9

Provides instruction to execute, as quickly as possible, a transaction at the present, or market price. Don’t use _______.

Answer 9

Market Orders

Question 10

Means that your order stands until you cancel it and it will be executed whenever the stock comes to your price - even if that’s 2 -3 weeks down the road1

Answer 10

A Good Til Canceled Order

Question 11

This term means that your order is only good for the day when it’s placed.

Answer 11

Day Order