If you’re going to try to break into any profession, then it is likely that you need to have at least a passing familiarity with the terminology and the common practices of that profession. This is especially true of anyone trying to break into the stock market. Therefore, you should have at least a bit of familiarity with the terminology.
1) Stock Market
It is the most simple and common set of words in the profession. Though it seems fairly straightforward, it is necessary to know the actual, concrete definition of the word. A stock market can be defined as a place where people who want to buy and sell stocks come together and trade them. The markets can either be virtual or physical.
2) Market Capitalisation
This term can be defined as the measure of the value of a particular business or company on any given stock market. The value is arrived at by multiplying the value of every individual stock by the total amount of stocks in circulation.
3) Bull Markets and Bear Markets
Though the origins of the particular names are unclear, the definitions are not. A bear market is one that shows an index rise over a period of time. A bull market is one that shows a decrease in the index over a period of time.
4) Brokers
These are intermediaries. In order to buy or sell stocks, you usually have to go through these brokers (though it is possible to get them straight from the primary source). The brokers usually have fees that they charge per stock trade.
5) Blue Chip
This term is used to denominate companies that, because of their size and comparative stability, offer a good deal of stock stability and consistent return. The companies are usually excellent investment options, though a certain deal of caution should indeed be taken.