S Flashcards
Sector
A group of stocks that are in the Same industry belong to the same sector. Example would be technology sector, which includes companies like Apple and Microsoft. Some traders prefer to trade on specific sector. Such as energy, because they know the industry well and can better predict stock “price fluctuations.”
Share Market
Any market in which shares of a particular company are bought and sold. The stock market is an example-and probably the most significant example-of a share market.
Short-Selling
When you short sell a stock you borrow shares from someone else with the promise to return them at a point down the road. You then sell the stock for a profit. it’s a way to take advantage of a stock that you believe will decrease in price. After you sell short, you can buy back The shares at the lower price point and take the difference in price as your profit.
Tim Sykes – I use you short selling on a regular basis, it’s often a smart move in a volatile market if you see patterns that indicate a sharp downward turn for a stock.
Spread
This is the difference between the Bed and the ask prices of a stock, or the amount for which, someone is willing to buy it and the amount for which someone is willing to sell it. For instance, if a trader is willing to trade XYZ stock for $10 and a buyer is willing to pay $9 for it the spread is one dollar
Stock Symbol
Is a one-to-four character alphabetic root symbol that represents a publicly traded company on the stock exchange. Apple stock symbol is AAPL, while Walmarts is WMT.
Small cap
Between $250 million and $1 billion
Some Penny Stocks
Scalper
Person treating who holds a position for a very short period of time, attempting to make money off of the bid ask spread or less than 10 $.20 – share. Not recommended as they can make some money but if you fewer ever get truly wealthy which is what is the goal of my strategy.
Short-Covering
Purchase insecurities in order to close and open short position. This is done by buying the same type in the number of securities that were sold short. Most often, traders cover their shorts whenever they speculate the security to arise In order to make profit, a short seller must cover the shorts by purchasing the security below the original selling price.
Short-Squeeze
When short-sellers try to avoid losses By covering the short positions quickly, squeezing the stock price higher Dash very scary when you were a short seller, very fun when you’re a buyer.
Stop-Loss Order
An order placed to liquidate a position when he specified price is reached or passed. Used to protect games/present large losses.
Shares outstanding
of total shares issued by the company.
SEC Compliance
Companies disclose their financials and other legal matters in periodic (usually quarterly) filings-rare for Penny Stocks.
Spam
Advertising a Stock through unsolicited bulk messages – common with Penny stocks.
Spin off
An independent company created through a sale by the mother company.
Secondary Offering
Company insiders sell stock, the company receives no capital.
