Basics Key factors For Stock Trading

Blue Chip Stocks: These are the huge, industry important companies. They present a stable record of important dividend payments and have a status of the sound fiscal organization. The appearance is thought to have been derived from blue betting chips, which is the maximum value of chips used in casinos.

Bull Market: This is the stock market as an entire is in a prolonged period of rising stock prices. It is opposite of a bear market.

Broker: An investor who buys or sells a deal for you in exchange for a charge in form of commission. Here is Tim’s preferred broker.

Day Trading: The process of buying and selling within the similar trading day, earlier than the closing of the markets on that day. This is what Tim normally does, though he does have a long-term collection as well. Traders that participate in day trading are called “active traders”.

Dividend: this is a piece of a company’s profits that is compensated to shareholders or trader that own Hat Company’s stock, on time period basis like as quarterly or annually.

Exchange: An exchange is a platform where special investments are processed. The most well-famous exchanges are the NYSE and the SGX.

Execution: If an order to trade has been completed, and you set in an order to sell 100 stocks, this shows that all 100 stocks have been sold.

Initial Public Offering (IPO): The primary sale or proposing of a stock through a company to the public, rather than just being owned by the confidential or inside trader.

Margin: A margin account lets a trader borrow money from a broker to buy an investment. The difference between the loan amount and the securities’ price is called the margin.

Here we are representing some basic terms that would be very important to the understanding stock trading with important tips like as Free Stock Trading Tips and Free Nifty Trading Tips.