If you are planning to venture in Stock Market, it is very important to familiarize with the basic technical financial terms of trading or stock market jargon. This will also help you facilitate in your trading business.
The following words are commonly used in the stock market jargon.
Stock refers to the share in the ownership of a company. This is represented with a stock certificate, a legal document as an official proof of your share of ownership. A person who holds a stock is called stockholder or shareholder.
The stock prices are the set price for the stocks to sell which are always affected with many factors such as economic situation and company’s financial reports.
The floor broker is the person in charge for carrying out the orders of their client or customers. A legitimate floor broker is license by the exchange.
On the other hand, a floor trader is also a person who trades only for his own accounts or accounts which are under his inventories.
The Broker is a person who conducts the buying or selling of the stocks on behalf of the investors or the dealers.
The margin stock refers to legitimate stocks. These are listed stocks in the national securities exchange or any trading company approved by SEC.
The buy on close term means to buy the stocks at a price within the closing range at the end of the trading session while the buy on opening means the opposite – buying the stocks at a price within the opening range at the start of a trading sessions.
These are only few commonly used terms in the stock market jargon which can be enhanced as you become a seasoned stock trader.