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Stock Market Vocabulary Chapter 3

Last Updated on May 2, 2019 by Chris Stang

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As part of our educational enrichment side of MS Money Moves, here is the latest addition of basic stock market vocabulary that every investor should know!

Annual Report: A collection of a company’s financial statements and report of operations for the duration of the fiscal year.

Averaging Down: Buying more of a stock when it is below the price you originally paid for it.

Bonds: Notes issued by a company or government to its lenders for a specified rate of interest and duration.

Book: An electronic recording of all pending buy and sell orders of a stock.

Capital Stock: Shares representing ownership in a company.

Cash Invest: The amount of un-invested cash in your portfolio.

Dilution: A reduction in the ownership percentages or shares of stock.

Expiration Date: The day that an option expires.

Futures: contracts to buy or sell securities on a future date. Such as calls and puts

Industry: A an aggregate of companies that pertain to a certain topic. For example, a biotech company is the party of the Healthcare Industry while its sector is biological technology.

Insider Trading: When insiders of a company trade their company’s stock, or when someone trades a stock based off of knowledge that is not publicly accessible.

Institutional Investor: A large organization that makes substantial plays in the stock market.

Invested Capital: Total amount of money raised by a company by offering equity to shareholders s and debt to bondholders.

Liabilities: The debt and financial obligations of an individual or company.

Limit Order: A buy or sell order of a stock at a specified price.

Stop Loss: An order through a broker to sell a stock automatically once it reaches a certain part.

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