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Stock Market Terms

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Stock Market Terms Stock Market - A place where equity shares of companies are bought and sold by participants. Shares - They are the individual units of ownership. Buy - To buy shares Sell  - To sell shares Bull - A market condition where people are expecting prices to rise. Bear - A market condition where people are expecting prices to fall. Bid - Price that buyers are willing to pay for a stock. Ask - Price that sellers are looking to get for their stock. Bid-Ask Spread - Difference between what people want to spend and what people want to get. Volatility -Rate at which price of the securities increases or decreases Dividend - Part of earnings paid to shareholders. Long- Betting on stock price to buy low and sell high. Short - Betting on tock to sell high and buy low. Broker - Person who gives you a platform to buy or sell stocks. Exchange - Place where different types of investments are traded. IPO - Initial public offering which happens when the privately traded company wants to b