Stock
A share of a company which is sold to investors and represents ownership.
Stock Market
A place for investors to buy & sell publicly traded companies’ stock. This list includes the NASDAQ, S&P 500, & numerous indexes from around the world.
Stock Price
The current price per share for a company represents the price from the most recent transaction for a company’s stock, determined by investors’ Bids & Asks.
Dividend
A quarterly payment made to investors when large companies distribute a percentage of their profits to shareholders.
Volume
The total number of shares of a company’s stock that trade on a specific day.
Liquidity
The ease with which an investor may sell their investment. Stocks are considered liquid investments, unlike real estate which is much more difficult to trade.
Supply & Demand
The amount of goods and services available (supply) compared to the amount of goods and services that people want to buy (demand).
Buy & Hold
An investing strategy where an investor buys shares in a company with the intention of maintaining that position over a period typically longer than 12 months.
Greed & Fear
These are emotions that typically lead to losses, when investors get greedy they can lose sight of their investing philosophy & when investors are fearful they may sell out of positions prematurely and incur losses rather than riding out a market cycle.
Risk
The possibility of incurring a loss on your investment. Typically, the larger the potential return, the higher the risk of losing a portion, or your entire, investment.
Diversification
The concept of investing across various industries and asset classes to mitigate risk and avoid putting all of your eggs in one basket.