| Stock terminology can get confusing in beginners | | | | facilitating a purchase or sale of stock. |
| stock trading. It is not that the terms are misleading, | | | | Bid - The price at which a broker will buy shares (i.e. |
| but more because there are so many of them to | | | | a sale of shares would be executed at the Bid price). |
| know. If you take the time to learn a few of these | | | | Ask - The price at which a broker will sell shares (i.e. |
| beginners stock trading key words at a time, you'll be | | | | a purchase of shares would be executed at the Ask |
| set in no time! Below is a list of the most common | | | | price). |
| terms that you should be familiar with. | | | | Spread - The difference between the Bid and the |
| Market / Stock Market / Stock Exchange - An | | | | Ask prices. |
| exchange where professional brokers buy and sell | | | | Day Order - An order to buy or sell stock that will be |
| stocks. I recommend sticking to the NYSE, Dow | | | | canceled if it does not get filled by the end of the |
| Jones, and Nasdaq for beginners stock trading. | | | | trading day. |
| Trading Hours - The time during which stocks can be | | | | Good Til Canceled / GTC - An order to buy or sell |
| traded. In the US, trading runs from 9:30am ET to | | | | stock that will remain open for 30 to 60 days (varies |
| 4:00pm ET. | | | | by broker). |
| Market Maker / MM - A firm that conducts the | | | | Limit Order - An order to buy or sell stock that will |
| trading of shares between other firms or individuals. | | | | not go through until the price gets to a specified |
| Ticker Symbol - A unique letter-based symbol used | | | | level, or better. |
| to represent the company's stock. | | | | Trend - The general direction that a stock is |
| Share - A unit of ownership of a company's stock. | | | | moving...upward or downward. |
| Authorized Shares - The total number of shares that | | | | Bearish - Describes a stock that is expected to trend |
| a company has. | | | | downward. |
| Outstanding Shares - Shares that are available to buy | | | | Bullish - Describes a stock that is expected to trend |
| or sell in the market. | | | | upward. |
| Restricted Shares - Shares that cannot be traded for | | | | These few terms will give you a good start in |
| a certain period of time. | | | | beginners stock trading. It is easier to talk about the |
| Float - Shares that are available for trade by the | | | | stock market if you understand these basic stock |
| investing public. | | | | terms. Learning them will help in your discussions, |
| Buy - To purchase shares of a company's stock. | | | | your research, and in understanding the helpful tools |
| Sell - To sell shares of a company's stock. | | | | out there. |
| Commission - A fee paid to your broker for | | | | |