MODULE 1: Vocab & Key Terms - Stock Market

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Stock

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A share of a company which is sold to investors and represents ownership.

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Stock Market

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A place for investors to buy & sell publicly traded companies’ stock. This list includes the NASDAQ, S&P 500, & numerous indexes from around the world.

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Stock Price

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The current price per share for a company represents the price from the most recent transaction for a company’s stock, determined by investors’ Bids & Asks.

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Dividend

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A quarterly payment made to investors when large companies distribute a percentage of their profits to shareholders.

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Volume

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The total number of shares of a company’s stock that trade on a specific day.

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Liquidity

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The ease with which an investor may sell their investment. Stocks are considered liquid investments, unlike real estate which is much more difficult to trade.

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Supply & Demand

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The amount of goods and services available (supply) compared to the amount of goods and services that people want to buy (demand).

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Buy-And-Hold

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An investing strategy where an investor buys shares in a company with the intention of maintaining that position over a period typically longer than 12 months.

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Greed & Fear

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These are emotions that typically lead to losses, when investors get greedy they can lose sight of their investing philosophy & when investors are fearful they may sell out of positions prematurely and incur losses rather than riding out a market cycle.

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Risk

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The possibility of incurring a loss on your investment. Typically, the larger the potential return, the higher the risk of losing a portion, or your entire, investment.