A value proposition is used by a company to convey why they deserve customers’ business. It highlights how the company adds value for the customer.
A ticker symbol or stock symbol is an identifier for some publicly traded stock, typically consisting of four or fewer letters. For example, Apple’s ticker symbol is AAPL while Ford’s ticker symbol is F.
“Trading on margin” describes the practice of using money borrowed from a broker to purchase some security.The security serves as collateral, and you are required to pay interest on the funds you borrow, as with all loans.
A rally occurs when the price of some stock or the market as a whole increases significantly for a sustained period of time.
Open refers to the time that trading begins on an exchange. The New York Stock Exchange opens at 9:30 AM EST, although pre-market trading typically begins at 8:00 AM EST (but can begin earlier).
A penny stock also known as an over-the-counter (OTC) or micro-cap stock, is a stock initially trading at less than $5, and represents a share in one of the smallest companies trading on the stock market. Penny stocks are frequently associated with low market capitalizations, which make them much more susceptible to price manipulation and “pump-and-dump schemes”.
An IPO, or Initial Public Offering, also known as, “going public”, is when a company first offers the public the opportunity to purchase shares in it. Prior to an IPO, a company is usually solely owned by a few private investors who invested capital to start the company.
Many companies, particularly larger ones, pay dividends. Typically paid quarterly or annually, it is a method for companies to reward their shareholders for continuing to hold stock in their company. Notably, large technology companies often do not pay dividends, opting instead to reinvest that money into research.
Day trading is the practice of buying and selling some security all within one trading day (between market opening and market closing). Day traders are speculators, because they attempt to profit off of fluctuations in the price of some security, rather than subscribing to a buy-and-hold strategy that relies on real growth by a company.
Close refers to the time that trading ends on an exchange. The New York Stock Exchange closes at 4:00 PM EST, although after-hours trading continues until 8:00 PM EST.
