Once you have decide to to take the next step and begin investing there are many terms you will come across as an investor. Many of the terms may sound confusing, but they are very important for every beginner trader to know. Here at Active-Investor we help beginning traders learn key terms and phrases that will be vital to your success in the investment world. Lets start with some of the basics.
Stock: Capital raised by a company through the issue of shares entitling their holders to dividends, partial ownership, and occasionally voting rights
Shareholder: The owner of shares in a publicly traded company company
Dividend: A taxable distribution from the net profits of a company to its shareholders, usually in monetary form but can be in the form of stock
Split: When new outstanding shares of stock are issued in proportion to shareholders current holdings.
Broker: An agent who buys or sells for a individual on a commission basis
Commission: A fee charged by a broker or agency (eg: E*Trade, Scottrade) for their service in facilitating a transaction, such as the buying or selling of stocks.
Bid: The highest price any buyer is willing to pay for a stock at any particular trading time
Ask: The lowest price that any investor or dealer has determined that they will sell a given stock at
Sell: A recommendation by an analyst, broker or advisor that a given stock should be sold
Buy: A recommendation by an analyst, broker or advisor that a given stock should be bought
Buy/Sell Order: An order with a broker to buy/sell a security or commodity
Open: initial price of a given stock at the beginning of a trading session
Close: final price of a given stock at the end of a trading session
These are just a few terms to get you started your with venture into the investment world. Here at Active-Investor we strive to educate those individuals making their own investments. We will consistently add new terms and phrases to help you become more knowledgeable about the stock market.