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What is a stock?
A stock is a certificate that shows you own a small fraction of a corporation. When you own a share you are referred to as a shareholder or stockholder.
There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
What is a bid?
An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.
What is an Ask?
The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.
What is limit order?
The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.
What is volume?
Volume is the number of shares traded in a company’s stock or in an entire market over a specific period, typically a day.
What is VWAP?
VWAP stands for Volume Weighted Average Price and is a trading benchmark used especially in pension plans. VWAP is calculated by adding up the monetary amount traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day.
What is the support level?
The price level which, historically, a stock has rarely fallen below. It is considered to be the level at which a lot of buyers tend to enter the stock.
What is resistance level?
The price at which a stock or market can trade, but not exceed, for a certain period of time. It is considered to be the level at which a lot of sellers tend to sell the stock.
What is the target?
A price that, if achieved, would result in a trader obtaining the best possible outcome for his or her investment. This is the price at which the trader would like to exit his or her existing position so that he or she can realize the maximum return.
What does stop loss means?
An order placed with a broker to sell a stock when it reaches a certain price. It is designed to limit an investor's loss.
What is the trend?
The general direction of the market or of the price of an asset. Trends can vary in length from short, to intermediate, to long term. If a trend is identified, it can be highly profitable, enabling the broker to trade with the trend.
What does a "Bullish" and "Bearish" market mean?
The use of "bull" and "bear" to describe the market originates from the way that these animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.
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