A stock market crash is often defined as a sharp dip in share prices of stocks listed on the stock exchanges. Variable Cost: As a company grows, the costs incurred by it to maintain operations also grow. Back testing – Applying a strategy to historical data to see if it is valid. NOTE: Some of the definitions are TSX-specific and, as a result, may differ from standard general definitions. Stock Market Terminology Stock Market Definitions; Value Stock: A stock that is not very efficient and trades in the market at a price lower than its value is called a value stock. Stock Market Terms Speak the language of the stock market - consult our Stock Market Terms for a glossary of terms and vocabulary that may help you better understand the capital markets. For example, if a company's stock is trading at $68, then the company's $68 option is at-the-money. 40 Stock Market Terms That Every Beginner Should Know. Auction Market A market where buyers and sellers enter bids and offers simultaneously, such as the New York Stock Exchange. If you are reading one of my stock market articles, you may have come across an investment term or phrase that you are unfamiliar with. Stock market Also called the equity market, the market for trading equities. Stock market glossary - Browse the A-Z glossary of financial terms, definitions and explanations associated with stock trading here. A value investor would consider such a stock undervalued. Stock Exchange A place, whether physical or electronic, where stocks, bonds, and/or derivatives in listed companies are bought and sold. Understanding the stock market can be a daunting task for any new investor. Ask – The price that a seller is willing to take for a share of stock; how much it will cost you to buy stock. In parallel with various economic factors, a reason for stock market crashes is also due to panic and investing public's loss of confidence. Often, stock market crashes end speculative economic bubbles.

I've assembled a list of the more pertinent investment phrases and terms, along with their definitions, that I frequently reference in my stock market articles. Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice. Auction (Treasury) The issuance of new Treasury bills, notes, and bonds at stated intervals by the Federal Reserve.

Below, you will find a list of stock market terminology, including the most common stock terms and their definitions for a better grasp of stock market operations. When experts and amateurs talk about trading stocks, they use these stock market terms to speak specifically about strategies, charts, patterns, indices, and other elements of the stock trading industry. Stock market terms are industry-specific jargon for the securities industry.