Basic stock terms you need to know
It is always good practice to understand the basics when starting a new endeavor.
1. Market Cap
The value of the stock price times the number of shares outstanding. Total dollar value of the business
2. Dividend
How much money you receive per share per year.
3. Stock Price
The current market value of one share of the business.
4. Revenue
How much money the business brings in each year from sales
5. Assets
Everything of value the business owns.
6. Liabilities
Everything of value that the business owns to someone or something else.
7. IRA
Individual retirement account
8. Shares Outstanding
The total number of stock shares on the market. Will change over time.
9. ETF
Exchange traded fund. Collection of stocks
10. EBITA
Earnings before interest, tax, amortization etc.
11. Earnings Call
When the business reports their quarterly numbers and performance to the public.
12. Stock Split
When a stock is split up into multiple shares in order to lower the stock price.
13. Stock Based Compensation
Get paid in shares of stock rather than
14. Limit V. Market Order
For a limit order you set the price of the shares and the order is only filled if you get the price.
Market order you get the best market price for your order.
15. Tax Deferred
You do not pay tax now, but you pay tax later on when take a distribution.
16. Resistance V. Support Level
Resistance level the upper price a security could reach.
Support level is the lower price a security could reach.
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