Stock Market Terms You Need to Know – Tips For Online Stock Trading

They say that knowledge is power and with out it we are lost. This statement is so true. So many folks out there just go into investing there money blind. They do not have the first idea about the stock market or how it works or the terminology the goes along with it. Before you get involved with investing money in the stock market there are some very important terms that you should learn.

* Dow Jones Industrial Average – This is a compilation of the 30 most traded blue chip stocks. This list is the most widely used for analyzing stock market indexes.

* Ask – This is the lowest price that a seller will accept when selling a stock.

* Bear – This refers to an investor who believes the stock market or a particular stock is declining. This is the opposite of a Bull.

* Bid – This is the highest price that a buyer is willing to pay for a stock.

* Broker – A person that buys or sells stocks, bonds, commodities and such in exchange for a fee which is called a commission.

* Bull – An investor who believes the whole market or one individual stock is going to increase in price. This is the opposite of a Bear.

* NASDAQ – This is a stock exchange consisting primarily of technology companies.

* Stock – This is the smallest measurable unit of ownership in a company. Shares fall into either the common or preferred categories; companies issue shares of stock in order to raise capital without borrowing money.

Once you learn some of the terms then you will feel more comfortable about your investing and you may even want to invest in a stock trading software that can help you make big profits.