Some very common terms in the stock market

There are many words in the stock quotes market which you need to know if you want to understand this market very well. Today in this article we will tell you some of the need to know terms of the stock market.

Bear market

In the stock market, the price of stock keeps changing every day. Some days it rises and some days it goes down and down. The market condition when the price of the stocks falls more and more is said to be the bear market.

Bull market

It is also a condition of the market. It is the opposite of the bear market. So it is the condition of the stock market when the price of stocks becomes high to very high.

Stock quotes

In the stock market, we all can see some numbers in decimal to show the current value of any stock in dollars or any other currency. This representation of stock value in the decimal forms is known as the stock quote of any particular stock on any particular day.

Stock Market

Broker

This is a term associated with the person who buys or sells the stock. The broker does not do a purchase or sell of the stock for himself but he does so for the sake of the clients who hire them for this service.

Dividend

This is not the same which we know with the dividend in mathematics. In the stock market, it is generally known as the profit which the company distributes among its shareholders. Some companies give the cash profit among the shareholders while some other companies just add some extra shares in the account of their shareholders as a dividend.

Exchange

This is a place where many business sticks are sold and purchased. Some of the popular stock exchange points are Nasdaq and New York stock exchange or NYSE.

IPO

The full form of IPO is an Initial public offering. This is the first time or first entry of the company in the market where it sells it’s stocks or shares to the public and the lowest price for the first time.

Leverage

The meaning of leverage in the stock market is very simple. It is just like taking some product from and selling it at a higher price to make a profit. So in the stock market Leverage means to borrow the shares and sell them to some higher prices. After selling that, you return the actual price of the shares to the lender and you keep the extra money with you as profit. Before investing, you can check at https://www.webull.com/hc.