Top 10 Key Market Terms To Know

Initial Public Offering(IPO) : An IPO refers to a previously private company that becomes public by selling stock 

Arbitrage: Arbitrage is the practice of buying an asset in one market and selling it in another market at a higher price, resulting in profit

Day Trading: Day trading involves buying and selling stocks or other assets within a single day, capitalizing on short-term price movements

EPR: Earnings per share is a measure of a company’s profitability, calculated by dividing its profit by the number of outstanding shares

Capital Gains: Capital gains are the profits made from selling an asset or investment for a price higher than the original purchase price

 Dividend: A dividend is a portion of a company’s earnings paid out to shareholders, typically on a quarterly or annual basis

Bear Market: A bear market refers to a market condition where prices are expected to fall, signaling a period of decline 

Bull Market: A bull market is a market condition where prices are expected to rise, reflecting a period of growth and optimism

Ask: The ask is the price at which a trader is willing to sell shares of a stock or asset

Bid: The bid is the price a trader is willing to pay for shares or assets in a market.