Stock Market Education: Basic Stock Market Terms
Have you ever wondered what bulls and bears have to do with the stock market? Well wonder no more, with this helpful guide to the basic terms used in the stock market jargon. Of course, these are just some of the hundreds of terms used every day on the stock market. We advise you to do your research first, if you really want to become a ‘player’.
Assets (nyereség) : All of the company resources and possessions which have a resale value are called the company assets.
Bear market (csökkenő trend):When the prices are low and seem to be staying that way, then the entire market is termed as ‘Bear Market".
Bull market (növekvő trend):This is what everybody likes best. When prices are soaring and the market is rising, it is called a bull market.
Dividends (osztalék):When a company that you have invested in, makes a profit, it shares the profit with its stockholders by means of dividends. These can be in the form of cash, stock, or company property.
Insider Trading (bennfentes kereskedelem):You will have heard this phrase in the movies. Insider trading is simply making investment decisions based on information not available to the general public. For instance, a broker might sell company stock after a secret ‘tip-off’ that the company is in financial trouble. In some cases, the information allows them to profit, in others, avoid a loss. It is of course, against the law.
Stocks and Shares (értékpapírok és részvények):A stock is quite simply a piece of ownership of a company. Because companies need financial assistance to grow – they sell pieces of ownership of the company by means of stocks. Each individual unit of a stock is called a ‘share’.
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