Episode 10: Basic Stock Market term you should know Part 2

This Episode is continuation of Episode 9

1. Market Capitalization

Market cap is also known as market capitalization, is the sum of the market values ​​of all the outstanding shares of a company. It is calculated by multiplying the total number of shares by the current stock price.

2.Captial Gain

A capital gain is the profit realized after selling an asset or investment for a higher price than you paid for it.

3. Day trading

Day trading is the process of buying and selling stocks during the day.

4. Diversification

Diversification is an investment strategy that diversifies mutual funds across different assets to minimize overall risk. 

5.Dividend

Dividend is one of the most basic terms in the stock market. It's simply a portion of the company's profits paid out to shareholders.

6.Dividend Yield

Dividend yield is the dividend expressed as a percentage of the stock price.

7. Future

A futures contract is an agreement for a buyer to purchase a specified asset and for a seller to sell that asset at a specified future date at an agreed price. Futures are a way for investors to hedge their current investments, a risk management strategy designed to offset potential losses in other investments. 

8. Going Long

Going long means buying a stock in the hope that the price of the asset will rise and you will make a profit.

9. Shorting

Shorting, as opposed to longing, refers to selling stocks in the hope that the price of the asset will fall. When an investor sells an asset short, they can profit by borrowing the asset, selling it, and possibly buying it later at a lower price when the price drops.

10. Growth Stocks

Growth stocks are common stocks of companies whose earnings are expected to be well above the industry average.

11. Inflation

Inflation is the rate of increase in the prices of goods and services in an economy.

12. Liquidity 

Liquidity measures how quickly and easily a stock can be bought or sold without affecting its price. For example, cash is the most liquid asset. No exchange is required to extract value from cash, and it is already the most liquid form. Cars, on the other hand, are illiquid, and regardless of their value, you may have to wait until you can sell them at the best possible price.