Stock Market Glossary

Ask

The lowest price at which a seller is willing to sell a security.

Bid

The highest price a buyer is willing to pay for a security.

Bear Market

A market condition characterized by falling stock prices and widespread pessimism.

Bull Market

A market condition characterized by rising stock prices and investor optimism.

Dividend

Payments made by a corporation to its shareholders, usually from profits.

Market Order

An order to buy or sell a security immediately at the best available current price.

Limit Order

An order to buy or sell a security at a specified price or better.

Liquidity

The ease with which an asset can be bought or sold in the market without affecting its price.

Portfolio

A collection of investments owned by an individual or institution.

Price-to-Earnings (P/E) Ratio

A valuation measure calculated by dividing the current stock price by earnings per share.

Stock

A share of ownership in a company that represents a claim on its assets and earnings.

Volatility

A statistical measure of the dispersion of returns for a given security or market index.