Stock Market Glossary
A - D Stock market glossary index
A ( hover your mouse inside the text fields to locate the hyperlinks to indepth explanations )
Adding To Your Position Adding to your position is a stock market term for increasing the number of shares you own of a particular stock. ADR – American Depository Receipts American Depository Receipts or ADRs, are receipts for shares of stock in a foreign company that are purchased as a US purchase. Aggressive Investing When you hear the term aggressive with regard to investing, it simply means that the investor is picking stocks that are high risk.
AMEX - American Stock Exchange The American Stock Exchange (AMEX) is one of the two primary stock exchanges in the United States. AMEX is a mutual organization, meaning that it is actually owned by the companies that are members. Annual Report An annual report is released each year by all publicly held companies. Annual reports must be approved by shareholders and are then available for public perusal. Arbitrage Arbitrage is the act of taking advantage of the price difference of a stock between two exchanges in order to make a profit. Asset Allocation Your portfolio’s asset allocation simply refers to how your stocks and other investments break down by type. For example, your asset allocation may be 50% stocks, 30% bonds, 15% mutual funds and 5% cash. B Basis The basis is the average amount that you paid for a single share of stock in a company. Bearish Market In stock market terms, a bear market refers to any market condition where prices are falling and stocks are losing their value. Beta The term beta is a measure of a stock’s volatility. It is used to help investors and analysts predict how much a stock will rise and fall compared to the overall rise and fall of the market as a whole. Blue Chip Stock Blue chip stocks are those stocks that are considered to be of the highest quality. Board of Directors All publicly held companies have a board of directors. The board of directors is elected by the shareholders. Bullish Market In stock market terms, a bull market refers to any market condition where prices are rising and stocks are gaining in value. Business Cycle The business cycle is the predictable changes and fluctuations that an economy goes through on a regular basis, over a long period of time. Buy and Hold Buy and hold is a term that represents a particular investing strategy. Buy and hold means purchasing a particular stock and holding on to it for the long term... Buying on Dips Short term “dips” in a stock price are small downward price changes that are not due to any real problem with the economy or the stock itself.... C D Go back to the Main Stock Market Glossary index page
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