Stock: A stock represents a share of ownership in a publicly-traded company. When you buy a stock, you are buying a small piece of that company.
Share: A share is a unit of ownership in a company. When you buy a stock, you are buying a certain number of shares in that company.
Dividend: A dividend is a payment made by a company to its shareholders, usually as a portion of the company’s profits. Dividends can be paid out in cash or in additional shares of stock.
Market capitalization: Market capitalization (or “market cap”) is the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current market price of one share by the total number of outstanding shares.
Broker: A broker is a person or company that facilitates the buying and selling of stocks on behalf of investors. Brokers charge fees or commissions for their services.
Bull market: A bull market is a period of time when stock prices are generally rising. This is often associated with a strong economy and positive investor sentiment.
Bear market: A bear market is a period of time when stock prices are generally falling. This is often associated with a weak economy and negative investor sentiment.
Index: An index is a measurement of the performance of a group of stocks. It is usually calculated by taking the weighted average of the prices of the stocks in the group.
Portfolio: A portfolio is a collection of investments, including stocks, bonds, and other securities, that an investor holds. A well-diversified portfolio can help reduce risk.
Volume: Volume refers to the total number of shares of stock that are traded in a given period of time. High volume is often associated with high volatility and large price movements.
