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8 the words of famous stock market

8 the words of famous stock market

If you are going to invest in the stock market, and make some money from it, it'll do you good to learn the language, tools, and sayings of famous stock market. This will allow you to feel in control and interact productively with people around you and other investors.

Here are some words of famous stock market you need to know to feel at home in the stock market.

1. stock: this is a term that most often you'll hear on the market. Shares of company stock, referring to being sold to the public. If you buy shares in a company you are effectively getting a reciprocal share it to your name. You will also be eligible to vote in the meeting of shareholders. Also you will be informed about any important decision, ahead of the merger or Division of companies heading to.

2. bond: this is different from the stock because not each of these companies is a problem by the Government. Bonds issued by the due date. As and when they mature their value paid to the holder. Of course the longer the period of bonds the more money holders will receive.

3. dividends: If the company you have invested in, gained a lot of profit and then at the end of the quarter you will get an additional payment. One of the ways to make more of the dividends you will invest in the company. This will help you to get more profit.

4. futures: this is similar to stocks except in one sense – they purchased against the future cost of the product. When the future reach maturity, You will get the money if the later is more of what you invested in it. If the current cost is lower than the amount you invest you will not get anything.

5. the index Trading: for products such as gold, diamonds and health care you can buy shares in the groups of commodities or market area.

6. margin trading: this is analogous to buying and selling stocks on the money that you have borrowed. You buy shares at a price that only a fraction of the price in fact and you must pay the remaining amount at a later date.

7. bull or bear market: This determines the tendency in the stock market. Bull markets are optimistic that the market has risen to a great period of time. Lethargic market where prices continue to fall the pessimists.

8. Split: This means that the company's existing divisions increased in number without any depreciation of the existing share price. Two-for-one is one of the most common type of split, where each stock is divided into two. As a result every investor has twice the number of shares, but the money they've invested stays the same.

Here are some of the stock market's famous words, to be familiar with them will definitely work in your favor when you invest in the stock market.

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