Topic: Stock Market/Trading 2

VOCABULARY REVIEW: Stock trading

Need to learn or review vocabulary related to stock trading or stock markets? We've got you covered!

Volatility
Definition: The degree to which a stock's price changes over time.
Example:
High volatility means the price can change quickly.

Liquidity
Definition: How easily a stock can be bought or sold without affecting its price.
Example:
Large companies usually have high liquidity.

Dividend
Definition: A portion of a company's profits paid to shareholders.
Example:
The company pays a quarterly dividend.

Market capitalization
Definition: The total value of a company's outstanding shares.
Example:
The firm has a market capitalization of billions of dollars.

Bull market
Definition: A period when stock prices are generally rising.
Example:
Investors are optimistic during a bull market.

Bear market
Definition: A period when stock prices are generally falling.
Example:
A bear market often leads to cautious trading.

Trend
Definition: The general direction in which a stock's price is moving.
Example:
The stock is in an upward trend.

Technical analysis
Definition: Studying price charts and patterns to predict future movement.
Example:
Traders use technical analysis to decide when to buy or sell.

Fundamental analysis
Definition: Evaluating a company's financial health and performance.
Example:
Fundamental analysis focuses on earnings and revenue.

Risk management
Definition: Strategies used to limit potential losses.
Example:
Risk management helps protect investors during market downturns.

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