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Complicated Stock Market Terms Made Simple

By Edited Jan 10, 2016 0 1

Stock market terms can seem like a completely different language if you're not used to hearing them.

Things like year target estimate, common stocks, dual listed, family of funds, and more are definitely not easy to figure out if you don't have a guide. The easiest thing to do is go through them one by and determine what they mean.

The "year target estimate" is how well a certain stock is expected to perform. The performance of the stock may have been charted and analyzed over a period of time. You, of course, want to look at stocks that have a positive year target estimate.

Another term is "12{b)1 fee". This is simply money that is charged to cover advertising costs. A mutual fund may charge this fee in order to recoup costs. Always read the fine print to see if you will be charged this fee.

"Common stocks" is something that allows people to purchase ownership in a public company. It is called common because anyone can do it.

"IPO date" refers to when people were actually able to start purchasing these certain stocks. Likewise, the "maturity date" refers to when a bond matures and the person can get the money that's listed on the bond.

Another one of the stock market terms is a bit easier to figure out. They can't all be so complicated!

"Deleted" is a term that simply means it has been taken out of NASDAQ and can no longer be traded. A similar term is "held", which means that something is taken off the market for just a short while, and not actually deleted.

Occasionally, a company may be what is called "dual listed." This just means that it is in the NYSE and NASDAQ. Watch for those that are dual listed so you can be sure what you're really investing in.

Another term is called "Family of Funds". This makes sense when you realize it's in relation to funds that are maintained by one financial company.

Of course, there are stock market terms related to analyzing how well a certain stock is doing.

The "long term gain" reflects how much as made over a period that is longer than 12 months. It is often a good idea to examine how stock performs over a shorter span of time, so there are "short term gains" as well. This refers to a period that is less than 12 months long.

These stock market terms are actually easy to understand once you get a handle on them. They all serve an individual purpose that helps people to buy, sell, and understand what is going on in the world of stocks.

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Comments

Jul 10, 2010 1:22pm
Introspective
Good basic information. You mentioned "IPO date," it may good to know that "IPO" means; "Initial Public Offering." And, this is when a Co. issues common stock to the public for the first time. Nice article.
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