There is no doubt that a greater familiarity with the stock market terms will help investors to be much better disposed to carry out their operations in the markets of variable income. It cannot be forgotten that in the bag one uses very special terms, where English words predominate. This causes that some savers have some other problem to channel their movements to make the available capital profitable. With a little dedication and a good dose of will they will be able to correct this problem that appears to them in the investment sector.
In the stock markets there will be many technical words that will require a greater effort for their correct understanding. Not surprisingly, most of them come from the economy and it is very important to keep them in mind when starting operations in any financial market. Not only in the stock market, but in others such as currencies, raw materials, precious metals or even fixed income. Nothing should be left to improvisation, not even its language.
On the other hand, it is also true that it will be a adding value that you can be in greater contact with these words. Because in fact, it is true that all the terms related to investment are those that will help you in your day to day in the field of economics. Therefore, it is well worth an effort of these characteristics. Because the reward may materialize in a higher profitability of the operations carried out in the equity markets.
Short dictionary to operate
Una rating agency It is an entity that marks the solvency of any issuer of securities on the market. Among the best known are some of special relevance such as Moody's, Standard & Poor's and Fitch.
In the contracting of certain financial products that are not the purchase and sale of shares on the stock market, what is known as financial appeceament. Well, this really means the difference between the cost of the external resources that a company owns and the profitability that is achieved with the assets acquired with those resources.
Another of the most common terms in the stock markets is that which has to do with the balance of payments and that refers directly to the comparison of the income and payments of a national economy.
Not of minor importance is the bear market and that it is an Anglo-Saxon expression that indicates a downward trend in the stock market. You will often see it under this expression and not in Spanish, especially when it refers to international financial markets.
When talking about a listed company, it is very common to talk about its tax benefit. Well, from now on, you should know what we are talking about a part of their profits and that it is characterized because they are considered a taxable base for the purposes of Corporation Tax. Therefore, it has nothing to do with the gross profit of the companies.
Also these days the word appears with some frequency in the media Junk bonds. It is nothing less than a fixed income security issued with a high interest by high risk companies
Effect on shares
Other words are more linked to what is technical analysis or your own behavior in financial markets. As is the specific case of boops-back and whose real meaning is a share buyback. Or for example, head and shoulder that in technical analysis, a figure that marks a change in the market trend. It is also known among small and medium investors as shoulder-head-shoulder.
On the other hand, when talking about stock values, the thermal is used a lot stock market capitalization which is something as simple as the global price of all the shares of a company that is listed on the equity markets. Being a constant in any fundamental analysis worth its salt.
On the other hand, the words that are derived from the very operations that are generated in the companies that are listed on the equity markets cannot be forgotten either. Who has not ever heard in the specialized media what a cash flow? For those who do not know what this Anglo-Saxon term is, it will be necessary to tell them that it is simply the cash that a company generates after paying expenses and collecting sales. It is a very important piece of information to evaluate the quarterly results that companies that are listed on the stock market must present.
On the other hand, there are terms that small and medium investors are more used to, especially those who opt for more speculative operations and which refer to those popularly known as peas. In this case, it is a part of the stock market jargon that refers to securities with very little liquidity and that have very few securities in trading. They are characterized because they can generate significant capital gains, but they also carry a huge risk due to the great risk that their operations pose.
Financial cycles in the stock market
With regard to this important area in the economy, the financial cycles they are directly linked to the situation in the equity markets. Among other reasons because they determine the period of time of a defined trend and that can be bullish, bearish or even lateral. It is very important to know them because without a doubt it can give the appropriate keys to enter or exit the stock markets. Above other considerations of a technical nature or even from the fundamental point of view of companies.
Another word that is in vogue in all the specialized media is that which refers to the closure. What does this very normal word mean at first glance? Well, something as simple as the moment when the contract officially ends in a stock market. That is, when the equity markets close and the Spanish stock market coincides with 17,30. Like the denomination of turnover and that in this case refers to nothing less and nothing more than the turnover of a company, but never in what is linked to its possible profits. They are concepts that ultimately help the investor to make their decisions with greater guarantees of success. Although they are ensuring any kind of benefits of any kind.
Diversification in investment
In this section our readers will have heard on more than one occasion strategies to develop a correct diversification in our investments. In case anyone does not know it yet, it will suffice to say that this not complex word means that a method based on not placing all the assets in the same type of investment. Or what is the same, not investing all the money in the same basket, be it shares in the stock market, investment funds, warrants or even fixed-term bank deposits. On the contrary, it should be deposited in various financial products if it were possible for small and medium investors.
Nor should we forget what a dividend on account and the one that is unique. The first of these is exactly the profit distributed as a preview of the final results expected and received by the shareholders of the companies that pay it regularly. While on the contrary, the single dividend is the one that is charged in a single time, instead of delivering an interim dividend and others, such as the complementary dividend. On the other hand, who has not ever sold a financial asset below market prices. Well, maybe they have carried out this unprofitable operation without knowing that what they were doing at that time was dumping.
Benefits, forecasts, etc.
the so-called EBITDA it is always present in the business results of publicly traded companies. Well, nothing is easier than translating it directly to show that we are referring to profit before interest, taxes, amortizations and provisions. It is a very important piece of information to determine if it is the right time to invest money in a company. On the other hand, financial analysts pay close attention to this important economic parameter and affect its relevance for analyzing stock market values.
Another of the most used terms in relationships with the world of money is fixing. In this specific case we are talking about another financial asset such as the currency. Therefore, we are talking about the exchange rate that central banks establish day by day for their currency against others. Where the dollar and the euro are the main sources of reference in a market that is very active and characterized by its enormous volatility when it comes to setting daily changes. While on the other hand, the Traders Union: Best Low Spread Forex Brokers It is the foreign exchange market that allows investors from all over the world to exchange currencies between suppliers and applicants of the same. Finally, the free float refers to that part of the capital stock that is freely traded on the markets.