Why Not Invest In The Stock Market?
I’ve heard many people talk about wanting to have financial freedom and the privilege of an early retirement. There are many options available, if one only knows where to look. One of these options is investing in the stock market. Purists and old-timers might still be thinking that only big corporations and businessmen could trade stocks. Nothing can be more untrue. Anyone with substantial capital could start investing in the stock market.
For this post, we’ll discuss the very basic terminologies commonly associated with stock trading.
Stock Market
Term for the market for buyers and sellers of stocks.
Stock Exchange
A stock exchange is the facility wherein traders or brokers trade stocks. There are two types of stock exchange: physical and virtual. The former consists of having to physically be present in a brick and mortar stock market such as the New York Stock Exchange while the latter entails trading through the use of computers.
Stock Trader
Individuals or corporations who buy and sell stocks.
Stock Investor
Individuals or corporations who buy stocks and allow them to mature for a long time.
Open Outcry
This is the official term for how traders communicate in physical stock exchanges — usually comprised of yells and hand gestures (not obscene, mind you).
Buying and selling in a stock market is carried out in an auction. Basically, sellers set prices while the
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