Stock Market 101: Basic Investing Terms

Knowledge is the only thing you need to become a successful and confident investor.

James Dunne
Oct 31, 2018 · 4 min read

Stocks

Also called equities or shares, a stock is a piece of ownership in a company.

Stock Exchanges

Stock exchanges are where all of these shares are traded.

Stock Index

Simply put, a stock index is the calculated average of a selection of different company share prices. It is usually divided up according to a specific market, sector, or country.

Annual and Quarterly Reports

By law, public companies are required to produce quarterly and yearly reports on their activities and finances to give shareholders information on their financial performance.

Bid Price, Ask Price, Spread

These are terms used to describe the buying and selling of shares.

Dividends

When companies report their quarterly and annual earnings, you’ll often hear about dividends.

Portfolio & Diversification

When you choose to invest in a number of companies, you are building your portfolio.

Capital Gains

Capital gains are the increase in the value of an asset or investment from its original purchase price. Contrarily, capital losses are the decrease in value.



The MyWallSt Blog

Investing is for everyone, we show you how. MyWallSt is a multi-award winning company that helps you to become a confident and successful investor.

James Dunne

Written by

Content Editor @ MyWallSt

The MyWallSt Blog

Investing is for everyone, we show you how. MyWallSt is a multi-award winning company that helps you to become a confident and successful investor.