A beginners guide to stock market buzzwords

by | 9 May, 2018

What’s ‘bullish’? What’s ‘bearish’? Learn the jargon of the markets!

Beginners to investing often find that the jargon associated with the stock market can be overwhelming. Below we’ve compiled a list to help you get your head around bearish, bullish and everything else in between.

Analyst expectations: predictions that professional analysts make about stocks, companies and more. For example, ‘analysts expect Apple revenues to climb by 20% this year’.

Bearish: a downward movement in price of an instrument. The term can be used to denote a negative outlook from an investor about the future value of something, i.e. if they thought gold prices would fall, they may say: “I’m bearish on gold.”

Brent: a short-hand term for Brent Crude oil, a widely traded commodity.

Bullish: an upward movement in the price of an instrument. It can also be used to describe a positive investor sentiment, i.e. “I feel bullish about Snapchat shares.”

Buy the dip: buying an instrument when it’s cheap because its value has fallen, expecting the price to recover.

Earnings call: the release of a company’s latest set of earnings, which show how a company has performed financially over a certain time period. Earnings releases can greatly affect share prices because they affect how investors feel about a company’s value.

ETF: exchange traded fund – a fund which tracks (follows the movement in price) of a stock market index, commodity, bonds or a group of instruments bundled together. An ETF is a type of fund that owns the underlying instruments (shares of stock, bonds, foreign currency, etc.) and divides ownership of those instruments into shares, which which can be bought on an exchange just like a regular individual stock.

FAANG: The 5 largest tech companies in the world – Facebook, Amazon, Apple, Netflix and Google.

Fund: an investment vehicle which pools together the money of many investors to invest in a broad range of instruments.

Going long: buying an instrument, hoping to benefit from a rise in its price.

Going short: selling an instrument, hoping to benefit from a fall in its price.

HODL: ‘hold on for dear life’ – holding onto an investment through a time of strong market volatility.

Index fund: A fund which tracks the performance of a large stock index (like the FTSE100 or S&P500). These are often more expensive on an annual basis than an ETF and cannot be bought and sold throughout the day on an exchange.

Instrument: an asset that can be traded, such as a stock or bond, fund or commodity.

Initial Public Offering (IPO): An IPO is when a company issues stock for the first time to the public, offering its shares through a listed exchange, such as the New York or Hong Kong stock exchanges.

King crypto: a term for Bitcoin – the most popular cryptocurrency on the market.

Price reversal: when an instrument’s price climbs then falls in a short time period, or the reverse.

Price target: A prediction (usually from analysts) that the price of an instrument will be at a certain point at a certain time in future. For example: ‘Morgan Stanley analysts cut their 12 month price target for Nike to $60’. They usually offer a recommendation for potential investors too. These are a ‘buy’, a ‘hold’, or a ‘sell’ rating, based on predictions for the stock’s performance.

Rally: a long term sustained increase in the price of an instrument.

Returns: the amount of money you make on top of your initial investment over time.

Sell-off: A fast drop in the price of an instrument or set of instruments.

Sentiment: how other investors feel about the value of a particular instrument.

Share price spike: A fast rise in a share price.

Stocks / shares: the two words both mean pretty much the same thing. A stock or share is a piece of a company which an investor purchases. The purchasing of shares (or stock) makes the investor a shareholder (or stockholder) of that particular business.

Stock Market Index: A stock index or stock market index is a measurement of a section of the stock market. An example could be the UK FTSE 100 or US S&P500.

Trade: the buying or selling of an instrument.

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Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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