FREE 7Part Stock Investing Kit for Beginners
FREE Stock Investing Video Lessons
Following you will find investment terms; (i) you must know before you start
investing in stocks, (ii) you probably should know, and (iii) it would be a good
idea if you did know but its not really necessary to start.
(i) The investment terms you absolutely must know
– before you start investing
Ask Price – the lowest price a seller is willing to accept when selling the
At Limit – setting the minimum price at which you wish to sell, or the
maximum price at which you wish to buy, the stock on the market.
Bear market – a term used to describe a market that is falling (as opposed to
a Bull, or Bullish, market which is a market that has either risen already or is
expected to do so).
When I first started out as an investor and was finding it difficult to come
to terms with the myriad of investment terms – I used little tricks to jog
For example, for a ‘bear’ market I visualized a bear, clawing things
DOWN, and for a ‘bull’ market I pictured a bull with his horns, throwing
things UP in the air. Try it, it works a treat. It helped make me wealthy!
Bid Price – the price at which an investor may sell shares to the market. The
opposite is an Ask Price.
Book Value – the value of a company if all liabilities are subtracted from the
Broker/Dealer – a member of an Exchange who functions both as a market
maker (setting a price) and as the stockbroker (buying and selling the shares).
Blue Chip Stock – a company that has a history of solid earnings, regular
and ever increasing dividends, an impeccable balance sheet and regarded as
a safe if unspectacular investment.
Blue Chip companies are nearly always large and quite conservatively
(As a matter of interest, the term ‘blue chip’ was originally a reference to
the highest value poker chip.)
Bull Market – when the majority of stocks are rising in pri