Best Daily Stocks

Learning to read the stock market

Have you ever opened the business section of the paper with complete awe? Is the stock market daunting? If you have ever thought about investing, but felt intimidated, keep reading. Here are some basic definitions of market jargon values.

AMEX: The American Stock Exchange is the third largest stock exchange by trading volume.

Baby Bond Issuance of bonds by securities holding parity under $ 1,000.

Bull Market: A period during which the stock market prices are rising.

Common Stock: A security represents the ownership of a company. The ordinary shareholders elect a board of directors and voting on company policy.

Day Trading: Buying and selling a security within a day.

Dividend: Payment of a portion of the profits of an enterprise. It may be quoted in dollar terms or percentage of the current market price.

Dow Jones Industrial Average: Price-weighted average of 30 major stocks traded on the NYSE and NASDAQ.

Hedge Funds: private investment funds that are available only to select investors.

January Effect: general increase in stock price January.

Mutual Fund: Money pooled from investors are invested collectively in stocks, bonds or other securities. Managed by a fund manager.

NYSE: The New York Stock Exchange, or "Big Board" is a city located in New York Stock Exchange. The world's largest in terms of dollar volume, New York Stock Exchange lists approximately 3,000 securities.

NASDAQ: The National Association of Securities Dealers Automated Quotations. The first electronic stock market.

Shares Outstanding: shares of stock held by investors.

Par Value: The value of the bond.

Preferred Stock: A security that represents the ownership of a company, however, owners have a greater demand for common stock holders on the assets and income. Dividends on preferred stock dividends are paid before holders of common stock.

Reverse Stock Split: Reduction in the number of shares of a company increases earnings per share.

Santa Claus Effect: Sudden increase in stock prices during the week between Christmas and New Year.

Stock Market: A system of company stock trading. A company that trades is also known as a public company. The sale of shares allows the company to raise money.

Stock Market Index: Listing of stocks and statistics.

Stock Split: the existing shares of a company is divided into multiple actions.

Treasury stock: Stock that has been repurchased by the company.

These basic stock market definitions to help you understand the procedures basic securities investment.

About the Author

Charlotte Buelow is a contributing business writer for Goliath. Goliath is one of the Internet’s largest collections of business research, news and information. Learn more about Goliath.

Common Stocks $42.95 Buy and sell [Common Stocks] at great prices.

Keys To Investing In Common Stocks $6.36 Keys To Investing In Common Stocks