Stock Market Terms You Should Know Before Investing

High Price– The high price is the highest price that a certain stock reached in the day.

Low Price- The low price is the lowest price that a particular stock has reached at the end of the day.

Close Price– The close price is the price that a stock has when the stock market closes. Stock markets would usually close at 4:30 pm or 5 pm in the afternoon.

Market Price– The market price is the real time price of stock. This is usually the price that is used when people want to buy a stock.

Trade Volume– The trade volume refers to the number of trades of a certain stock.

Trade Value- The trade value is the trade volume of stock times the market price of that same stock.

Blue Chip Stocks– Blue Chip Stock is a general name for the stocks that come from big companies that have very high value and have large capitalization.

Penny Stocks- Penny stocks are the opposite of blue chips. These are the stocks that come from small companies that have minuscule capitalization.

Dividends– Dividends are rewards that a company gives to investors who are currently holding their stocks. Dividends may either be in shares of stocks or cash.

These are some of the basic terms that you will be coming across when you start investing. Of course, these terms are only the tip of the iceberg as there is much more to learn. If you want to play in the stock market, you have to study all of the terms well, so you won’t be confused when you’re there.

Picture of Amit Kupfer

Amit Kupfer

I am the founder of Social Trading 101. I am a passionate value investor. My investor "heroes" are Bruce c. Greenwald, Peter Lynch, Philip Fisher & Warren Buffett. You can copy my trades on eToro ????


Join Thousands of others getting the weekly posts.