What are the basic stock market terms?
What Are the Most Used Stock Market Terms? The most used stock market terms include bear market, bull market, blue-chip stocks, and earnings per share. Dividend, bid, ask, spread, and close are more must-know terms.
What are the 7 classifications of stock?
7 Categories of Stocks that Every Investor Should Know
- Income Stocks. An income stock is an equity security that offer high yield that may generate from the majority of security’s overall returns.
- Penny Stocks.
- Speculative Stocks.
- Growth Stocks.
- Cyclical Stocks.
- Value Stocks.
- Defensive Stocks.
What are the 4 levels of stock?
There are four phases of the stock cycle: accumulation; markup; distribution; and markdown. The stock cycle is based on perceived cash flows into and out of securities by large financial institutions.
What is a point in stock market lingo?
For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of points, it is the same as saying the stock has lost or gained X number of dollars. Using points to describe share price gains, or declines, is generally done to describe short-term results, such as for the day or week.
What are the 11 stock sectors?
The order of the 11 sectors based on size is as follows: Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials.
What are the 4 types of investments?
There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.
- Growth investments.
- Shares.
- Property.
- Defensive investments.
- Cash.
- Fixed interest.
What is danger stock level?
Danger Level: It is the level below which stocks should not fall in any case. If danger level approaches then immediate steps should taken to replenish the stocks even if more cost is incurred in arranging the materials.
What is a stop limit?
A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, a stop-limit order becomes a limit order that will be executed at a specified price (or better).
What is a stock trader called?
A stock trader is someone who buys and sells stocks, whereas a stockbroker is a middleman or entity that helps a trader facilitate those trades.
What is bull vs bear market?
A bull market occurs when securities are on the rise, while a bear market occurs when securities fall for a sustained period of time. It’s important to understand the differences between bull and bear markets and how they impact your investment decisions.
What are the 24 industry groups?
GICS sector definitions
Covering Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Real Estate, Communication Services and Utilities Sector.
What sector is Nasdaq?
The Nasdaq Composite Index is one of the most widely-watched indexes in the world and is often seen as a stand-in for the technology sector, due to its heavy weighting in tech companies.
What is the formula of NAV?
NAV Formula
NAV = (Assets – Liabilities) / Total number of outstanding shares. NAV is often close to or equal to the book value of a business.
How do beginners invest?
Best investments for beginners
- High-yield savings accounts. This can be one of the simplest ways to boost the return on your money above what you’re earning in a typical checking account.
- Certificates of deposit (CDs)
- 401(k) or another workplace retirement plan.
- Mutual funds.
- ETFs.
- Individual stocks.
What is mean by LIFO?
Last in, first out
Last in, first out (LIFO) is a method used to account for inventory. Under LIFO, the costs of the most recent products purchased (or produced) are the first to be expensed.
What is safety stock formula?
Safety stock is calculated by multiplying your desired service factor (Z score) by the standard deviation in lead time (πππΏπ), which is the degree and frequency by which the average lead time differs from the actual lead time.
What is buy stop?
A buy stop order is entered at a stop price above the current market price (in essence “stopping” the stock from getting away from you as it rises).
What is a buy limit?
What Is a Buy Limit Order? A buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a limit order to make a purchase, the investor is guaranteed to pay that price or less. While the price is guaranteed, the order being filled is not.
What is the KISS rule of investing?
What is the KISS rule? Keep it simple, stupid. -means successful investments are ones that are simple. Avoid complicated investments that are difficult to understand or explain.
What are the 2 types of stock?
Common and Preferred Stock
You can buy two kinds of stock. All publicly traded companies issue common stock. Some companies also issue preferred stock, which exposes you to somewhat less risk of losing money, but also provides less potential for total return.
What are blue chip stocks?
What Is a Blue Chip Stock? A blue chip stock is a huge company with an excellent reputation. These are typically large, well-established, and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors.
What is a bullish economy?
A bull market is a market that is on the rise and where the economy is sound; while a bear market exists in an economy that is receding, where most stocks are declining in value.
What are the 11 sectors of the market?
What are the top 5 sectors?
The U.S. economic recovery was in full swing during the decade following the Great Recession.
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Other sectors making notable contributions to the economy over the last decade include construction, retail, and non-durable manufacturing.
- Healthcare.
- Technology.
- Construction.
- Retail.
- Non-durable Manufacturing.
What is SIP NAV?
The performance of a particular scheme of a Mutual Fund is denoted by Net Asset Value (NAV). In simple words, NAV is the market value of the securities held by the scheme. Mutual Funds invest the money collected from investors in securities markets.