What is the market of stocks.
The assumption many make is that the general knowledge in what stocks are, their benefits and how one can trade in them, is adequate. Hence this might come as a surprise but there is so much more to know about stocks. A vast knowledge in the market of stocks will help you be better prepared when you do decide to engage in their trade, but otherwise it is also pertinent to have knowledge of it none-the-less.
What is the market of stocks?
A stock is the unit ownership of a business. It means that one has become entitled to the earnings and assets of a company to the extent of their shareholding. Shares are usually either accompanied by voting rights or dividend payments.
What is the difference between a stock and a bond?
A stock is the ownership of a company translated into shares of the company. However a bond a loan given by an investor to accompany at an agreed interest rate. At the end of a specified period, the company will be required to return the loaned funds to the investment plus the accumulated interest.
What is a stock broker?
A stock broker is a professional who engages in the buying and selling of stock at a stock market. He may either carry out the entire transaction on behalf of a client, or he may facilitate the meeting between a buyer and a seller for a stock sale and purchase to occur.
What does it mean when says a ticker symbol?
The abbreviation of stock depicted by a collection of letters are used as an identity for the stock. These are what are referred to as ticker symbols. An example of a ticker symbol for let’s say; Coca-Cola is KO
I’ve heard stocks a held in a street name. What does that even mean?
Most stocks are held in street names, and this in other words means that the stock is held in a brokerage account. When this happens, the company that owns the stock is not aware of who the investor is, and this is because the name of the stock broker won’t show up on the shareholder roster.
What is a stock split?
Stock certificates may be distributed prorata. This is done with the intention of making the stocks cheaper and more affordable. The stocks will then be of a lower price i.e. they will be worth less. Commonly, stocks are usually split 2-1.
A bear market; what is that?
A bear market is a stock market where prices crash by 20% or more. It is the opposite of a bear market. Its terminology arises from the manner in which a bear claws it prey down.
A bull market; what is that?
A bull market, deriving its name from the manner in which a bull would throw off its prey by plunging them further with the use of its horns, is a stock market in which the rise in price is by 20% or more.