Stocks vocab

What is a stock

Ownership in a comapny]

What is a share

One unit of stock

what is a dividend

company profit shared with shareholders

what is a bull market

a market where stock prices are rising

what is a bear market

Market where stock prices are falling

What is a portofoliO?

All the investments someone owns

What is an IPO

Comapny sells to the public for the first time

What is a broker

Comapny that buys/sells stocks for you

what is a blue chip stock

a stock from a large stable comapny

What is market capitalziation

Total value of a companys shares

What is bid price

highest price a buyer will pay for a stock

What is ask price

Lowest price seller will accept

What is the spread

Difference between bid and ask price

what is volume

number of shares traded in a given time

What is volatility?

How much a stock price changes quickly

What is capital gain?

profit made from selling a stock at a higher price

What is liquidity?

How easily you can buy/sell an investment

What is diversification?

Spreading investments to reduce risk

What is a mutual fund?

Pool of money invested in many stocks/bond

What is an ETF?

Exchange traded fund that works like a mutual fund but trades like a stock

What is short selling?

betting a stocks price will go down

What is yield?

earning from an investment, like dividends or interest

What is a ticker symbol?

A short code used to identify a stock