Trading/Finance
What is an option?
a financial instrument that is based on the value of underlying securities such as stocks, indexes, and exchange traded funds (ETFs)
What is a stock exchange?
a market for buying and selling stock
What is a bear market?
a market in which prices are falling
What is a dividend?
a payment out of profits to the shareholders of company
What is a bull market?
a period of rising stock prices
What is an option contract?
offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying assat
Trading is...
the buying and selling of securities (e.g. stocks, bonds, options, etc.).
Out of the money (OTM) means...
the price has not gotten there yet
extrinsic value is...
the value a thing has from another "source"
In the money (ITM) means...
what the price already was at
At the money (ATM) means....
where the stock price is right now
What is stock liquidity?
How easily you can get in and out of a stock.
What is the bid of a stock?
The amount you receive when you sell a stock.
What is a stock symbol?
A one, two, or three letters that represent a publically traded company on the stock exchange.
What is a broker?
A person who buys or sells securities in exchange for a fee.
What is a stockholder?
A person who owns stock in a corporation.
What is a stock?
A share of ownership in a company
What chart can tell you a stock open, high, low, and closing price for the day?
Candlestick
intrinsic value is...
Intrinsic value is the value something has in itself
What is the ask of the stock?
Is the price you pay when you purchase a stock.
What is the Relative Strength Index (RSI)?
Measures a stocks speed of change of price movements.
What is the volume of a stock or option?
The amount of people trading a specific stock each day.
What is the spread (gap) of a stock?
The difference between the bid and ask price of a stock. Sometimes call the bid-ask spread.
