What Does It Mean For A Stock To Trade Ex-Dividend Common Terms Used in Investing in Stocks

You are searching about What Does It Mean For A Stock To Trade Ex-Dividend, today we will share with you article about What Does It Mean For A Stock To Trade Ex-Dividend was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Does It Mean For A Stock To Trade Ex-Dividend is useful to you.

Common Terms Used in Investing in Stocks

Do you want to start investing in stocks but don’t know how to start? Here are some jargon and common terms used when investing in stocks to help you communicate with your broker, read financial documents and websites, and talk to other investors:

shares – Shares are ownership shares in a company. Companies issue shares to raise money (called “equity”) to purchase equipment, improve capital, and generally expand their business. Once shares are issued to the public, they are traded between individuals.

market capitalization- The number of shares outstanding multiplied by the price per share. This gives the relative value of the company.

stock exchange- A stock exchange is a place where people gather to trade stocks. This is done by persons who have received the right to do so (by purchasing a place on the stock exchange) and their employees. These “persons” are brokerage firms, venture capital firms, and others. Brokerage firms mostly (but not always) trade stocks for their clients. Most transactions are now done by computers that automatically match buyers and sellers.

NYSE- The New York Stock Exchange, one of the oldest and largest exchanges. Larger stocks are usually traded on the NYSE, also known as the “big board.”

Curb The American Stock Exchange, a smaller exchange than the NYSE, which came into existence when a group of traders began trading outside the NYSE on “the curb”. The US stock exchange is the most common place where “stock portfolios” are traded.

NASDAQ A newer exchange that consists of a network of computers. Smaller stocks tend to trade on the NASDAQ, as do many technology companies.

specialist and market maker- These are individuals who participate in the actual execution of stock trading by taking the other side of the trade (for example, buying shares from a person who would like to sell). A specialist makes money by buying stocks at the bid price and selling them at the bid price. The difference between a specialist and a market maker is an advanced topic, not necessary here.

offer price – The current price someone is willing to pay for the stock.

asking price is The current price at which someone is willing to sell some stock.

spread- This is the difference between the bid and offer price. Usually, the market maker or specialist pockets the difference by buying shares from one person at the bid price and selling them to another person at the bid price. Not so long ago, stocks were quoted in fractions, so the spread was usually at least 1/8, or 12.5 cents per share ($12.50 per 100 shares). More recently, stocks began trading in decimals, so the smallest theoretical spread is 1 penny per share, or $1 per 100 shares.

long to go – Taking a position in a stock (or other equity or product) to make money when the stock’s value rises. For example, buying shares.

short – The opposite of going long. Taking the position that money will be made if the share price goes down.

short sale – A trade in which a person borrows shares and sells them, thus receiving proceeds from the sale. The position is closed by buying back the shares later, hopefully at a lower price. Note that a brokerage firm is usually in the business of looking for stocks to borrow.

stop loss An order to sell shares if the price falls below a certain price, thereby preventing further losses.

market order – An order to buy/sell a stock at any current bid/ask price if there is a seller/buyer on the other side of the trade (or a market maker willing to take the opposite side of the trade).

limit order – The order in which shares will be bought/sold when the ask/bid is at or below/above a certain price. For example, an order to “buy 100 shares of XYZ corp with a limit of $20 or higher” will be filled if the ask price is $20 per share or lower, so the buyer will never pay more than $20 per share.

dividend- Money paid by a company to shareholders who own shares on a certain date (called the “ex-dividend date”). The amount paid depends on the number of shares owned (for example, 2 cents per share or $2.00 per 100 shares).

capital gain- Money earned on stocks by buying stocks at a lower price and selling them at a higher price.

split- An event where a company issues stock to lower the price per share. For example, in a 2-for-1 split, a stockholder who owned 100 shares at $20 per share would end up with 200 shares at $10 per share. There is no net difference in holding value.

Hopefully this will give you a head start on some commonly used terms.

Video about What Does It Mean For A Stock To Trade Ex-Dividend

You can see more content about What Does It Mean For A Stock To Trade Ex-Dividend on our youtube channel: Click Here

Question about What Does It Mean For A Stock To Trade Ex-Dividend

If you have any questions about What Does It Mean For A Stock To Trade Ex-Dividend, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Does It Mean For A Stock To Trade Ex-Dividend was compiled by me and my team from many sources. If you find the article What Does It Mean For A Stock To Trade Ex-Dividend helpful to you, please support the team Like or Share!

Rate Articles What Does It Mean For A Stock To Trade Ex-Dividend

Rate: 4-5 stars
Ratings: 3084
Views: 82818287

Search keywords What Does It Mean For A Stock To Trade Ex-Dividend

What Does It Mean For A Stock To Trade Ex-Dividend
way What Does It Mean For A Stock To Trade Ex-Dividend
tutorial What Does It Mean For A Stock To Trade Ex-Dividend
What Does It Mean For A Stock To Trade Ex-Dividend free
#Common #Terms #Investing #Stocks

Source: https://ezinearticles.com/?Common-Terms-Used-in-Investing-in-Stocks&id=4940230

Related Posts

default-image-feature

What Does George Soros See About The U.S Stock Market Book Review – The Greatest Trade Ever by Gregory Zuckerman

You are searching about What Does George Soros See About The U.S Stock Market, today we will share with you article about What Does George Soros See…

default-image-feature

What Does A Well-Stocked Refrigerator Keep In It For Beverages New Zealand Maids (Part two of two: R&R in Sydney)

You are searching about What Does A Well-Stocked Refrigerator Keep In It For Beverages, today we will share with you article about What Does A Well-Stocked Refrigerator…

default-image-feature

What Do You Get Back.For Claiming A.Loss In Stocks Annuities 101

You are searching about What Do You Get Back.For Claiming A.Loss In Stocks, today we will share with you article about What Do You Get Back.For Claiming…

default-image-feature

What Do I.Get Taxed When I Sell My Stock Shares Australian Wholesalers – Do You Really Need An ABN To Buy From Wholesalers In Australia?

You are searching about What Do I.Get Taxed When I Sell My Stock Shares, today we will share with you article about What Do I.Get Taxed When…

default-image-feature

What Are The Trading Hours For The U.S Stock Mark When Is the Best Time to Trade in Binary Options?

You are searching about What Are The Trading Hours For The U.S Stock Mark, today we will share with you article about What Are The Trading Hours…

default-image-feature

What Are So.Come Of The Best Stocks To Invest In Best Discount Broker for Beginners: An Overview of Top 5 Platforms and What They Offer

You are searching about What Are So.Come Of The Best Stocks To Invest In, today we will share with you article about What Are So.Come Of The…