SM BASICS
What is a stock?
A share in a company
What does buy low sell high mean.
The goal of buying a stock at a lower price and selling it for profit.
Whats a bull market
When the market is going up.
What is a day trader?
Whats a price to earnings ratio
A ratio for valuing a company by comparing its current share price to its earnings per share.
What is a stock exchange
A marketplace where stocks are bought and sold.
Whats a limit order
An order to buy or sell a stocks at a specific price.
What is a bear market?
When the market is going down.
What is a long term investor?
Someone who holds stocks for several years to benefit from the price gain, and dividends.
What is a dividend
When you own a share in a certain company they will sometimes give you a small amount of money for holding a share in their company.
What does it mean to own a share in a company
It means you own a small portion of a company
Whats a market order?
Buying a stock at a set order.
What does "Market Volatility" mean?
The price variation over time
What is diversification?
Whats earnings per share
A company profit divided by the number of outstanding shares in stocks.
What is a ticker symbol
It's an abbreviation of a company usually.
For example AMAZON=AMZN
Whats bid-ask spread
The difference between the highest price a buyer is willing to pay for a stock
What is market capitalization
The total value of a company's shares of a stock.
What does dollar-cost average
Investing a fixed amount of money at regardless of stock prices.
What is a blue chip stock
A large, financially sound company with a history of reliable earnings.
Whats the difference between common and preferred stocks.
Common stocks let u vote on a companys decisions. Preferred stocks dont let u vote.
What is short selling?
Selling a stock don't own, hoping to get it at a lower price
What is a stock index? Can you name one?
A measurement of the stock market. Like the S AND P 500.
What is an ETF
A type of fund that is traded on NYSE.
What is fundamental analysis
The process of evaluating a stock by examining their data and assets.