Explanation:
The phrase "stock market" describes a number of marketplaces where shares of publicly traded firms can be purchased and sold. Such financial transactions take place on official exchanges and in over-the-counter (OTC) markets that adhere to a predetermined set of rules.
Explanation:
A big, well-known corporation is considered a blue chip stock. These are often big, established, financially strong businesses that have been around for a while, have consistent earnings, and frequently distribute dividends to investors.
Explanation:
Stocks known as penny stocks are offered for less than $5 a share. This phrase originally meant equities with a value of less than $1, but its connotation has evolved through time. Historically, companies with financial troubles or those that are just starting out have issued penny stocks (e.g., bankruptcy).
Explanation:
A bull is someone who invests in commodities or securities in anticipation of a price increase or someone whose activities cause such an increase. The opposite is a bear, who sells assets or goods in anticipation of a decrease in price.
Explanation:
Political unrest, interest rates, current affairs, exchange rate fluctuations, natural disasters, and many more factors all have an impact on the stock market. These variables may impact your yields, but if you have a firm grasp of the market, you can choose when is the best to buy or sell stocks.
Explanation:
A stock, bond, or other asset is said to be illiquid if it cannot be quickly and easily sold or exchanged for cash without suffering a significant loss in value. Because there is little trading activity or interest in the issue, as shown by a lack of eager and willing buyers or speculators to buy or sell the asset, illiquid assets may be difficult to sell rapidly. Illiquid assets thus frequently exhibit more price volatility, broader bid-ask spreads, and lesser trading volume.
Explanation:
Market breadth is a tool that traders use to gauge the direction of the market as a whole as well as the health of the index. Market breadth indicators can't be used to forecast market movements or price reversals because they aren't always totally correct.
