What Are Some Basic Terms About the Stock Market?


Quick Answer

Some basic stock market terms include "shares," "exchanges," "bid and ask prices," "dividends" and "capital gains," according to Rubicoin. When an investor buys a stock, also called an equity or share, he owns a part of the company and can gain or lose money.

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Full Answer

If an investor wants to buy or sell a company's stock, he finds the stock exchange that lists the company, explains Rubicoin. For example, as of November 2015, ExxonMobil is the largest company on the New York Stock Exchange, and Apple is the largest company on the NASDAQ, shows Finviz.com.

A bid is a price that a buyer is willing to pay for a stock, and an ask is a price at which a seller is willing to sell, states Rubicoin. Dividends are profits that a company distributes to its shareholders. A capital gain is an increase in value on an investment and requires a tax payment.

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