Stock Market Terms

By: EconomyWatch   Date: 23 November 2010

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There are various Stock Market Terms that are used in a Stock Market and they are Bull Market, Bear market, Short Sell, Margin Buy, All or None, Market Capitalization. Each of them are discussed under the following heads:

Bull Market: Bull market is one of the Stock Market Terms which is associated with the confidence of the investor that is always increasing. This type of market motivates the investors to invest more in anticipation of more profits. America witnessed a famous bull market in the 1990s.

Bear Market: Bear Market is a Stock Market Term which is used when a Stock Market prices are falling as a whole. And it acts like the natural characteristics of a bear which is cautiousness. The investors invest money very cautiously and also sells shares to avoid further loss.

Short Sell: Short Selling is one of the Stock Market Terms which is used to define a particular business strategy.

Through this strategy the buyer borrows stocks from brokerage firms or its own shares to lend them to short sellers. The buyer then sells it off in the market predicting stock price to decrease, this enables the buyer to get profit out of the borrowed shares.






Margin Buy: Margin Buying is a Stock Market Term which is also used to define a particular stock market strategy. By this strategy the buyer through sound fundamental predictions and calculations try to gain some capital profit . The buyer borrows some money to buy certain shares which he predicts to be profitable. He then sells them off and gains profit.

All or None: All or None is one of the Stock Market Terms which is used mainly while trading securities. It means that the purchaser or the seller would only involve themselves with a particular stock if all the shares are traded together.

Market Capitalization: Market capitalization is one of the Stock Market Terms used to measure the economic or corporate size equivalent to the price of stock times the share numbers outstanding of a public company.

For more on Stock Market Terms one may go to answers.com, about.com etc.


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