An overview of stock market basics. From http://MyStockMarketNews.com

1. Learning Commonly Used Stock
Market Terminologies

2. The stock market is a great arena for people to
make a lot of money, however, for many
beginners, all the hustle and bustle of stock trading
may cause a lot of confusion, especially if you are
not familiar with the many terms and tactics used
for negotiations.
If you are a beginner in the stocks game, make sure
that you familiarize and educate yourself well on
stock trading knowledge. You can of course, start
off by widening your vocabulary. Here are a few
terms that you may need to familiarize:

3. Stocks are probably the most important and
common items traded in the stock market. These
are actually shares of certain companies, which are
publicly sold and traded.
Whenever people buy a portion of stock in a
particular company, this means that they acquire a
share of ownership and investing in that specific
business. Through this, a stockholder is given
certain rights towards the company such as a vote
in stockholder meetings as well as his or her
financial share from the company’s earnings.

4. A stockbroker is the person who handles the
actual trading of stocks. He or she does the
negotiations to buy and sell the stocks in behalf
of the investors and the companies involved.
The many various types of brokers may
include full-service, online, auto-trade and
discount brokers.

5. A bull market is a market that manifests a
continuous increase in the value of its stocks as
well as a steady growth. Generally, with this
type of market, investors gain an optimistic
attitude and may want to buy more rather than
sell stocks.

6. Bear markets mainly characterize significant
losses and declines in a particular market. With
this type of behavior among stocks, most
investors would generally want to sell more of
their stocks and may be pessimistic about
investing.

7. Dividends are added or bonus payments given
to stockholders after a profitable quarter. With
this sum of money, many people may often
reinvest on more shares of stock, which allows
individuals to earn so much.

8. Futures, just like stocks, are also traded in the
market. However, these are purchased against
future costs of commodities. You can earn from
these, if in time, the actual price of
commodities become higher than what you
paid for the futures. On the other hand, you
can also lose money if the price becomes lower
that what you paid for.

9. A day trader is the person who buys and sells
stocks aggressively in one day. Usually, he or
she does this for several times each day in
order to make quite a few small profits within
the day.

10. Trading on margin may be similar to trading
stocks with the use of borrowed money.
Through this, you can purchase shares of stock
for only a portion of the actual price. The
remainder of the cost can be paid upon the
actual sale of the particular stock, or on a later
date.

11. These terms are only a few of the most commonly used
language in stock trading. And upon encountering
them, you may certainly have the impression of how
intimidating the stock market can get. With the many
complicated terminologies and tactics, you may easily
get backtracked if you do not know enough about what
you are dealing with.
Remember that if you are new at doing business in this
arena, make sure that you take the extra mile to learn
more about more terms as well as strategies on how
you can best maximize profit. A little hard work will
certainly get you far, and one of these days you will
realize how all of this can pay off.

12. Generally speaking the Stock Market refers to equities where actually
stocks and derivatives are traded. In the U.S.A. we think the Stock Market
is New York City. In fact there are major Stock Markets in Hong Kong,
Hamburg, London, Paris, Canada, Japan and others that influence one
another and impact the world Stock Market.
The New York Stock Exchange may have stocks listed that are listed on
other major Stock Markets. A company headquartered in Amsterdam
may be listed on multiple stock exchanges. Many foreign organized
companies are listed on the New York Stock Exchange. There is a
tremendous value for foreign companies to be listed on an exchange in
the U.S. The exposure and knowledge of a foreign company has a face on
the New York Stock Market.
An example would be a China stock Baidu. These information and search
technology company has grown in leaps and bounds since it was
introduced on the New York Market. Sometimes all it takes is making a
good impression to stock analysts and a good review by key people to
give the foreign company a boost.

13. The reality of the Stock Market today is its world wide integration of
investors, companies and alliances that create an unprecedented dynamic.
Thus far this United Nations of the financial markets has produced an
unspoken treaty of like minds. The main objective is to create a win-win
scenario for all of the world players in the Stock Market.
Any investor wherever located may hold a substantial stake in any given
equity no matter where the equity is traded. The Stock Market is a very
large private club that anyone can join with the only admission ticket is
the price of a single share of stock.
Most people are aware of American companies utilizing off shore
manufacturing of their products. It may be not as well known that some
traditional American brand companies are owned by foreign companies.
Other American brand companies have a significant multi-national
presence with significant stock ownership by foreign banks and investors.

14. The term equity should be broadly interpreted. There are equities
that involve the manufacturing of products and goods, but a
product can be intellectual or an entity like insurance. Banks are
equities and financial brokers are all traded on the various
exchanges. An investor may own gold stocks, mining companies
and equities that package these equities into a corporate entity.
The only limitation is that if the investor is interested in owning
the commodity or trading in the futures market the Chicago
Mercantile or other commodities exchanges is the investing tool.
In other words you may own a bank as an equity who may have
bonds and other commercial paper that may trade on the
commodities exchanges, but you can' t buy a commodity as a
stock. If you want a commodity like wheat, currency, corn, gold,
silver or the like you need to look to the commodities exchange.

15. In the United States the New York Stock Market is comprised of
the NASDAQ, NYSE and the newly created combination of the
NYSE Group with Euronext in April, 2007. The Euronext holding
company is a phenomenal synergy between Paris and the NYSE
whose history goes back to 1792.
The Euronext is a combination of derivatives, currency and
equities to name a sample of products. There are other exchanges
that include the AMEX. There are listing requirements for each of
the exchanges. The Stock Market is basically a place where buyers
and seller of a piece of a company come together and in the
process the company hopefully raises some cash or other value.
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