Stock Market Conventions and Terms If you have read my previous post you must have already known why companies trade in the stock market and why you should invest in the stock market. In order to successfully trade in the stock market you must first understand the language that is being used in trading. There are several terms that might still sound foreign to you. Take note the definition of the terms that will be discussed here will not be very technical. This is not meant to be a comprehensive, “encyclopedic” dictionary or list of technical and detailed stock market terms and conventions. If you wish to have a deeper technical meaning to stock market concepts, then try searching for other sources. The concepts explained here is intended for the ordinary layman. 1.) UNDESTANDING SHARES OF STOCK – First of all we need to understand what a stock is. A stock is in a sense “a piece of ownership of a company.” To fully understand this, I will have to give a “crash course” in … [Read more...]