A lot of individuals are conversant in the stock exchange most people remain unacquainted terms like "stock" "buying and selling of stocks" "stock market charts and "bulls and bears" Even the term "stock market" itself remains some extent of confusion for those that do not have financial expertise There are times once they would scratch their heads in bewilderment whenever they hear their neighbors complain about the low prices of stocks on the market or if a colleague suddenly gets an enormous windfall from his stock exchange investments What most of the people are conscious of is that the trading on the stock exchange can cause booming or bankrupt businesses if these companies have played the "stock market game" correctly Simply put stocks are representations of the company's assets and profits If the corporate makes a take advantage of the stocks this value is split yearly among the shareholders within the sort of a dividend As an example if a corporation makes a profit of $100000 this year and it's 20 shareholders holding 1 stock each the shareholders would receive a dividend of $5The stock exchange Defined The stock exchange - also referred to as the "stock exchange" - may be a financial organization wherein licensed brokers trade company stocks and other securities - including privately traded securities - that are approved for trading by the exchange Exchanges can occur physically or virtually Brokers buy and sell stocks supported the requirements and requirements of the people and/or companies they represent The two sorts of stock markets are• Primary stock exchange = for trading of Initial Public Offerings (IPOs) and other fresh issues by sellers and buyers• Secondary stock exchange = for trading of existent stocks within the market by buyers and sellers Common Stock Market Terms Stock market "lingo" is nothing to be confused or feel daunted about so as to know the trends within the stock exchange you would like to find out certain commonly used terms and be ready to assess stock exchange charts By taking the initiative to find out the fundamentals of the stock exchange you'll be transformed into a knowledgeable investor and be ready to observe stock decisions Let us take a glance at a number of the terms that you simply will presumably encounter on the stock exchange Stock price = this is often the worth that stocks are bought and sold Factors that directly impact on stock prices are the position and performance of company issuing the stocks Another term associated with the stock price is that the market capitalization - or just market cap - which is that the stock price multiplied by the amount of shares Other factors that affect stock prices include current performance and expansion and future growth allow us to put it in simpler terms If a corporation is doing poorly within the stock exchange their stock prices decline in value In contrast if these companies are performing well you'll see the stock prices increase in value Reading stock exchange Charts = These charts and quotes provide the present status of the performance of the stocks These stock changes are often reflected as "day-to-day" or "intra-day" counting on the trading thereon particular day52 Week High and Low = This consists of stock data over a period of 52 weeks On the date of reporting you'll be ready to see the stocks with rock bottom and highest prices during this 52-week period Type of Stock = Preferred stocks would have specific symbols written after the corporate name If no such symbols are indicated the stock may be a common shares Ticker Symbol = Every company trading on the stock exchange is assigned an abbreviation or specific letters These ticker symbols are used in order that all the businesses are often listed on the ticker tape All the main stock exchanges within the U - like the nay stock market Dow Jones and American stock market - restrict ticker symbols from 1 to 4 letters only (similar to the heraldic symbols within the British exchanges) Any new companies should register their own symbols which should vary from the symbols that are already getting used by other firms Some samples of ticker symbols include AAPL for Apple Computer Inc and INTC for Intel you'll probably observe that some symbols would have a period followed by 1 or 2 additional letters One exemplar is BRK this suggests that the stock is being offered by Berkshire Hatchway Company and it's a lower priced "Class B" stock Dividend Per Share and Dividend Yield = On a stock exchange chart a corporation is claimed to be issuing dividends if both of the columns with these headings are filled up You compute the Dividend Yield by dividing the annual dividends per share by the worth per share This dividend yield means the shareholder features a return on his dividends.
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