Most common business terminologies
A penny stock is a stock that trades for less than $5 per share. Penny stocks are often traded over-the-counter (OTC), meaning they are not listed on a major stock exchange. Penny stocks are considered to be high-risk investments because…
An over-the-counter (OTC) market is a decentralized marketplace for trading securities and other financial instruments. It is not a physical location, but rather a network of dealers and brokers who trade directly with each other. OTC markets are used to…
An order is a request to buy or sell a stock. It is a way for investors to communicate their investment intentions to a broker or exchange. Orders can be placed for a variety of reasons, such as to take…
Market capitalization, also known as market cap, is the total value of all outstanding shares of a company. It is calculated by multiplying the current share price by the number of outstanding shares. Market capitalization is a measure of a…
Earnings per share (EPS) is a company’s net income (profit) divided by the number of outstanding shares of common stock. EPS is a valuable measure of a company’s profitability because it shows how much profit each share of stock is…
Common stock is a type of security that represents ownership in a corporation. It is the most basic form of equity, and it gives shareholders a number of rights, including: Common stock is riskier than other types of investments, such…
A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an underlying asset at a specified price on or before a specified date. The specified price is called…
A bull market is a market condition in which stock prices are rising. It is typically defined as a rise of 20% or more in a stock market index over at least a two-month period. Here are some of the…
Beta is a measure of a stock’s volatility relative to the market. It is calculated by comparing the stock’s price movements to the price movements of a benchmark index, such as the S&P 500. A beta of 1 means that…