Asset is something of value. Assets in financial markets are stocks, bonds , money market instruments and some other types of securities. We are going to focus primarily on stocks and stock related assets.
Bear Market is a general decline in asset prices.
Bond is a legal contract to repay a fixed amount (principal) and periodic payments (interest). These are fixed income investments as we know what we will receive if all goes well.
Broker helps you buy and sell securities. Typically this service involves a fee, but many online brokers that do not charge fees.
Bull Market is a general upward move in a market
Dividend is a cash or stock payment to the owners of the company, those who own shares. Dividends If the payment is in stock, it is termed a stock dividend.
Dividend Yield is the dividend amount divided by the stock price times 100. If a company pays a $3.00 cash dividend and the stock price is $50, the dividend yield is 6.00% ($3.00/$50*100 = 6.00)
Exchange is the place where buyers and sellers buy and sell securities. These are typically electronic but there are exchanges that have a physical trading floor. Examples include the New York Stock Exchange (NYSE) and the National Association of Security Dealers Automated Quotation (NASDAQ).
Stock represents ownership in a company, which is divided into fractional parts called shares. The more shares the greater the ownership in the company
Stock Market (sometimes called the stock exchange) is usually referred to as the “market” and is where shares traded.
Shares represent fractional ownership in a company
Money Market is a market for short term borrowing, usually under 6 months
Mutual Fund is a pool of investors’ funds to purchase securities.
Capital Gains / Losses are the increases (decreases) in the value of an asset. If the asset is sold we have realized capital gains(loses).