Terms used in Stock Trading
If you are a newbie to stocks trading then it is imperative for you to read this article. This article is written to provide you with the usual terms used in stocks trading. As a brief recap, a stock trading is the act of buying and selling of stocks through a broker who acts as a medium for the client and the trader (company). When you buy a company share or stocks you are considered as a part-owner of the company where you get to enjoy privileges like voting rights.
A capital gain is the term used to describe the increase that your capital received because of the increase in the companys profits. It is usually what investors are after that is why they invest through stocks. Stocks can have high capital gains depending on how many shares were purchased. The higher the shares, the greater the capital gains if the market increases value.
A buy and hold strategy is the term used when a stock is bought and held for a long period of time regardless of the fluctuations or positive rise in the market. This is in belief that in a matter of years, a stock may increase its value to more than 100% of its original capital gain. Some people are actually on this kind of trade although some does not wait for many years to pull-out his shares and capital gains.
A current market value is the term used to describe the current worth of portfolios, stocks or shares. This is not fixed in value because fluctuations in the market generally affect the price of shares. In order to have high capital gains, people wait until the stocks are priced at a minimum market value. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.
The last term is the aggressive term. It is used to describe the way an investor invests in high risk shares. The greater the number of shares you purchased, the higher the risks involved. This is mostly played by sophisticated investors. - 23199
A capital gain is the term used to describe the increase that your capital received because of the increase in the companys profits. It is usually what investors are after that is why they invest through stocks. Stocks can have high capital gains depending on how many shares were purchased. The higher the shares, the greater the capital gains if the market increases value.
A buy and hold strategy is the term used when a stock is bought and held for a long period of time regardless of the fluctuations or positive rise in the market. This is in belief that in a matter of years, a stock may increase its value to more than 100% of its original capital gain. Some people are actually on this kind of trade although some does not wait for many years to pull-out his shares and capital gains.
A current market value is the term used to describe the current worth of portfolios, stocks or shares. This is not fixed in value because fluctuations in the market generally affect the price of shares. In order to have high capital gains, people wait until the stocks are priced at a minimum market value. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.
The last term is the aggressive term. It is used to describe the way an investor invests in high risk shares. The greater the number of shares you purchased, the higher the risks involved. This is mostly played by sophisticated investors. - 23199
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.
posted by X - Men @ 1:32 AM
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