Ticker Symbol – An abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. For example the company Microsoft has a ticker symbol of MSFT. Apple has a ticker symbol of AAPL
Stock– A stock is a security that represents the ownership of a fraction of a company or business.
Security– Ownership or debt that has value and may be bought or sold.
Share– a share represent equity or ownership in a company or business.
Equity– the money value of a property or of an interest in a property in excess of claims or liens against it in this case a stock or a share.
- Often times you hear people interchange the words stock, share, holding, and equity when speaking casually about the stock market and their portfolios.
Holding– a security or any other asset that one holds in their portfolio.
Portfolio– a range of investments held by an individual person or an organization. You can have a stock portfolio, a real estate portfolio, a baseball card portfolio. It all depends on your own “investment strategy”.
- the difference between the terms: bear market, and bull market. I find myself giving emphasis to my audience on what the difference between these two are so nobody else has any confusion. Its quite simple I am just dense in the head sometimes.
What is a Bear Market? Investopedia gives a fantastic definition and explanation. However a bear market means that the securities in the stock market have a prolonged decline of around 20% or more for 2 months or more typically. The stock market as a whole can be referred to as being in a bear market but an individual stock/security can also be referred to as being in a bear market if it fits within those definitions.
What is a Bull Market? Again Investopedia came to the rescue with a much more eloquent definition than I could write. A bull market can be summed up as the securities in a stock market having a prolonged period of upward trends of 20% or more for a period of 2 months or more.
Exchange– A place where publicly listed companies are traded. There are many exchanges around the world but the most common ones in the United States are: New York Stock Exchange (NYSE) and the National Association of Security Dealers Automated Quotations (NASDAQ).
Market Sector– This term is used in economics and finance to describe a part of the economy. There is a standard known as the Global Industry Classification Standard or (GICS) that defines the 11 different sectors and their complete breakdown from a hierarchy standpoint. Please take the time to check that out because it gives you a breakdown from a zoomed out satellite perspective of the market as a whole.
Dividend– A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits or reserves. This is one of my favorite parts of investing which was sparked by YouTuber Andrei Jikh.