Terms used in Stock Trading
If you are new to stocks trading then it is imperative for you to read this article. This article is written to provide you with the usual terms used in stocks trading. To give you a fresh recap: stocks trading is the buying and selling of stocks. When you buy a company share or stocks you are considered as a part-owner of the company where you get to enjoy privileges like voting rights.
A capital gain is the term used to describe the increase that your capital received because of the increase in the companys profits. It is usually what investors are after that is why they invest through stocks. Stocks can have high capital gains depending on how many shares were purchased. The higher the shares, the greater the capital gains if the market increases value.
A buy and hold strategy is the term to describe when an asset is bought and hold for a long period of time because of predictions or assumptions that a company will perform best in a few years time. Some people exercise this strategy while some dont, for they would not want to wait long enough to access their capital gains. This strategy remains the capital untouched regardless of the rise and fluctuations in the market.
Current market value is the term used to describe the current worth of a share in the market. This is not fixed in value because fluctuations in the market generally affect the price of shares. A strategy most people like to use is to buy shares from a newly established company where the rates are at a minimum. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.
The last term is the aggressive term. It is used to describe the way an investor invests in high risk shares. The greater the number of shares you purchased, the higher the risks involved. This is mostly played by sophisticated investors. - 23221
A capital gain is the term used to describe the increase that your capital received because of the increase in the companys profits. It is usually what investors are after that is why they invest through stocks. Stocks can have high capital gains depending on how many shares were purchased. The higher the shares, the greater the capital gains if the market increases value.
A buy and hold strategy is the term to describe when an asset is bought and hold for a long period of time because of predictions or assumptions that a company will perform best in a few years time. Some people exercise this strategy while some dont, for they would not want to wait long enough to access their capital gains. This strategy remains the capital untouched regardless of the rise and fluctuations in the market.
Current market value is the term used to describe the current worth of a share in the market. This is not fixed in value because fluctuations in the market generally affect the price of shares. A strategy most people like to use is to buy shares from a newly established company where the rates are at a minimum. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.
The last term is the aggressive term. It is used to describe the way an investor invests in high risk shares. The greater the number of shares you purchased, the higher the risks involved. This is mostly played by sophisticated investors. - 23221
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.
posted by X - Men @ 5:19 AM
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