Knowing the Term on the Stock Market

Investing is not easy. Not a few those who intend to invest their money in the hope of profit and even then lose money.

Not understanding the difference between a truly productive investment and an investment fraud under the guise of fantastic profits, causing many investors to fail to run their investments.

There are many reasons why most novice investors are easy to get fraudulent. One of them can be caused by not knowing the various terms that exist.

Therefore, it would be nice if you will plunge into the investment world then you learn the ins and outs of these investments.

There are so many terms you should know before you actually decide to jump into the investment world. Here, only a few will be shown. Here’s a summary;

Know the Terms on the Stock Exchange

  • Acquisition: Takeover of one company by another company by buying shares of the company
  • Annual report: The financial statements made every year and have been approved by shareholders at the general meeting
  • Auto rejection: Limitations of stock price movements such as when the position rises and falls
  • Bearish: The stock price indicates the descending state
  • Bid: Offer requested by the stock buyer
  • Blue chip: A flagship collection of professional companies with good reputation and easy to trade.
  • Broker: Company or person who works as an intermediary between investors and companies in the world of buying and selling shares
  • Bullish: The stock price indicates the upside
  • Stock exchanges: Parties or markets that provide or establish systems to bring together buyers and sellers of shares.
  • Buyback: Repurchase of outstanding bonds or shares issued by issuers for various reasons and purposes
  • Capital gain: The price when buying the stock is less than the price when selling
  • Capital loss: The price when buying a stock is greater than the price when selling
  • Capital market: Trading of valuable papers
  • Closing price: The amount of closing price of securities in the stock
  • Cut loss: Selling shares when in a loss position with the aim of minimizing predicted losses will be greater
  • Issuers: Companies that have listed their shares on the stock exchange
  • JCI (Composite Stock Price Index): A composite indicator of all stock price movements in the Indonesia Stock Exchange
  • Investor: Company or person who invests money or funds in the issuer
  • IPO (Initial Public Offering): Initial market offerings in the world of stock exchanges
  • Custodian: Parties (companies or individuals) who keep all securities
  • Lot: The minimum number of units in the sale or purchase of shares, such as 1 lot equals 100 shares
  • Margin Trading: Stock trading where a portion of its capital is a loan from a broker or company by providing a collateral of the shares purchased
  • Offer: An offer requested by the investor (the investor) who sells the shares
  • Open price: The amount of opening price of securities in the stock
  • Stock split: Solving unit of stock units where each one unit is broken down into more than one unit in order to increase the number of existing shares

Of course, in addition to those already mentioned above, there are many other terms on the Stock Exchange. Only, for beginners, the above term is enough.

 

However, some detailed explanations as well as about the ins and outs of investment, of course a beginner investor needs to learn it so that will know all about the world of investment.

That way, investment fraud can be avoided because when studying the ins and outs of investing, then you will know which investment is really promising the future and the fake.

The decision to play the stock is in the hands of every investor. Therefore, you must also understand every risk, good and bad as well. You also need to know that in investing, not necessarily by playing the stock.

 

There’s something safer to do like investing in property or gold. It just does not mean without risk because actually every investment must have risks. Risk management can help to reduce greater losses.