Terminology Flashcards

1
Q

What is a Stock?

A

A share in the ownership of a company.

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2
Q

What is a Market?

A

The overall environment where buying and selling of stocks occur.

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3
Q

What is a Broker?

A

A person or platform that facilitates stock trading.

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4
Q

Define Bull Market

A

A rising market where prices are expected to go up.

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5
Q

Define Bear Market

A

A falling market where prices are expected to decline.

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6
Q

What is a Divedend?

A

A portion of a company’s profit paid to its shareholders.

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7
Q

What is a Portfolio?

A

A collection of investments owned by an individual or institution.

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8
Q

What is a Index?

A

A benchmark that represents a specific market or a segment of it.

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9
Q

Define Blue Chip Stocks

A

Shares of large, well-established, and financially sound companies.

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10
Q

Define Volatility

A

The degree of variation of trading prices over time.

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11
Q

What is an IPO (Initial Public Offering)?

A

The first time a company’s stock becomes available for public purchase.

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12
Q

Define Market Order

A

A request to buy or sell a stock at the current market price.

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13
Q

Define Limit Order

A

A request to buy or sell a stock at a specific price or better.

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14
Q

Define Bullish

A

Optimistic about the potential rise in stock prices.

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15
Q

Define Bearish

A

Pessimistic about the potential decline in stock prices.

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16
Q

Define Diversification

A

Spreading investments across different assets to reduce risk.

17
Q

What is the Stock Exchange?

A

A marketplace where stocks are bought and sold, e.g., NYSE, NASDAQ

18
Q

Define Ticker Symbol

A

A unique series of letters representing a stock on the market.