STOCK TRADING AND TERMINOLOGIES

The stock market is the type of exchange which allows traders to buy and sell stocks as well as companies to issue stocks. Stock market mainly serves two purposes, firstly to provide capital to companies so that they can use this fund for expanding their business. The second purpose that the stock markets serves is to give the investors an opportunity to share in profits of companies which are listed in the stock exchange. The second purpose that the stock markets serves is to give the investors an opportunity to share in profits of companies which are listed in the stock exchange . A stock trader or any Equity trader is a person or company involved in trading equity securities. Stock traders may be an agent, a speculator, a broker or a hedger. Such equity trading in large publicly traded companies maybe through a stock exchange. Stock market terminologies are industry specific terms which are frequently used when we read or talk about the stock market. Experts and novice often use these terms to talk about strategies, charts, in dices and other elements of the stock market. Buy means to buy shares or take positions in the company. Sell is getting rid of the shares as you have achieved your goal or want to cut down losses. Ask is what people who are looking to sell their stocks are looking To get for their shares. Bid is what you are willing to pay for a stock. Going long is betting that the stock price will increase so that you can buy low and sell high. Going short is betting that the stock price will decrease so that you can sell high and buy low.