Top Stock Market Expressions To Know

What are the top stock market expressions to know?

If you want to become a successful stock market investor or trader, you should know all the essential information and expressions in this market.

If you want to start your trading in the global stock market, you can register in the Aron Groups Broker.

These are the top stock market expressions that you should know about.

#1. Market Capitalization

Market capitalization is the first stock market expression that you should know about, also a very concept to realize the whole stock market.

• Market capitalization is the total value of a company that is offered in the stock market
• When a company wants to into the stock market throughout the IPO process, the value of the company is determined by expert authorities, and then based on this value, the stock price of a market is determined in the market

Also, the sum of all companies’ market capitalization of a stock market, is known as the market capitalization of the stock market.

#2. Shares Outstanding

The other important top stock market expression that is essential for both traders and investors to know is the shares outstanding.

• Shares Outstanding is the total number of shares available for a company in the stock market
• Based on the market capitalization of a company, the shares outstanding are determined
• It’s important to know that shares outstanding is a stock market expression that you should know about and there are all tare stocks for a company in the stock market

#3. Earnings Per Share (EPS)

One of the most important stock market expressions is the EPS or Earnings Per Share.

• EPS is the amount of profit that a company devotes to stock and is a measure for evaluating a company in the stock market
• For example, when the EPS of a company is $2, this means that the company is giving $2 as a profit to their stockholders

Also, aside from the EPS, one of the other stock market expressions that are e important to know and related to the EPS, is the DPS expression that we will speak about in the following section.

#4. Dividends Per Share (DPS)

Dividends Per Share or in brief DPS is the number of profits that the company is giving to its stakeholders.

Now, what is the difference between EPS and DPS?

• EPS is the amount of profit per stock but this amount can be retained for the company, and part of it devoted to the stock owners, for example, when the EPS is $3, all of this $3 can be for the company’s stock owner, or part of it can be kept for the company, for example,e $1, and $2 can be shared with the stock owners
• But DPS is the amount that is shared with the stock owner directly, for example, when DPS is $2, this means that all of this $2 is devoted to the stock owners of the company

These are two very important stock market expressions that any trader or investor should know about.

#5. Market Value

Market value is among the top stock market expressions that you should know about.

• Market value is the price of a stock at a specific time
• The market value of a stock is changing daily based on the daily supply and demand in the stock market

For example, the market value of a stock can be $25 on Monday, and this can change to $23 or $27 on Tuesday, this shows the changing nature of the market value for a stock.

If you divide the market capitalization of stock by the shares outstanding, then you can calculate the market value of the company in the stock market.

Market value is the most important stock market expression that you should know about.

#6. P/E Ratio

One of the stock market expressions that are very useful for choosing the best company in the stock market is P/E Ratio.

P/E Ratio means market price per share/earnings per share that is offered by percentage or as a multiplier.

• P/E Ratio can be used to see if a market value of a stock is higher or lower than the average market and worth investing in or not
• For example, if the average stock market P/E Ratio is 14, this means the average market price of the stock market is 14 times the average earnings per share of the stock market
• Now imagine that company A has the P/E Ratio of 24, while the company B has the P/E Ratio of 11, this means that company A is pricier, and might have a bubble in its prices

The P/E ratio is a very useful stock market expression that you can use for comparing different companies or stocks together.

#7. Ordinary Stocks

Ordinary stocks are the usual stocks that you purchase in the stock market, you have the voting power, and receive the DPS offered by the company annually.

Ordinary stock is a stock market expression and can be better realized when compared with preferred stock.

#8. Preferred Stocks

What is the preferred stock expression in the stock market?

• This is a stock that is like ordinary stock with two main differences, you don’t have the voting power as the owner of the preferred stock, but you have priority in receiving in the DPS, and any incentive offered by the company

Both ordinary stocks and preferred stocks are important expressions in the stock market, and traders and investors should know about them and their differences. 

#9. Dividends Stocks

Among the most important stock market expressions, being aware of the different types of the stock market is very important.

• Dividends stocks are stocks that pay dividends to their owners constantly
• For people looking for having a constant income from the stock market, dividends stocks are the best choice

#10. Blue Chips Stocks

Blue Chips stocks are one of the other types of stocks in the stock market expressions and are the name used for the biggest companies in the stock market.

• Blue Chips stocks are pricey, have the highest market capitalization, and have a constant track record

#11. Growth Stocks

Growth stocks are the other types of stocks, and one of the most important stock market expressions in the world.

• Growth stocks are the stocks that have a higher growth rate than the average market
• These stocks are great for investing and making attractive profits in the long-term

#12. Company Sales / Revenue

In this section, we want to speak about some specific stock market expressions that help you to better select the company for trading and investing.

• Company sales or revenue is all the money that a company earns without considering the expenses
• Higher sales or revenue is good when the expenses are increasing lower than the sales growth

This is a very good stock market expression that helps you to choose the best company using other companies.

#13. Company Profit

Company profit is the money that is earned by the company when all expenses are calculated.

• This is an awesome stock market expression that helps you to see if a company is worth investing in or not

Company profit must be used with other stock market expressions, and metrics to better choose the companies for trading and investing.

#14. Profit Margin

Profit margin is a stock market expression, and is calculated by dividing the sales of a company by the profit of a company.

A higher profit margin means the company is performing better and can be a good option for trading and investing.

#15. Intrinsic Value

In this last part, we want to introduce you to one of the most important stock market expressions that are very good to know for investors and traders.

• Intrinsic value is an expression in the value investing philosophy
• In value investing, there is an ln intrinsic value that can be higher or lower than the market value of a company
• There are many methods for calculating the intrinsic value that is not the topic of this article buisre covered in another article by the Aron Groups Broker

Intrinsic value is a method to realize if a company is worth investing in or not, and is used by value investors around the world.

Benjamin Graham is the father of value investing, and currently, the most famous investor that is using value investing is Warren Buffett, one of the most successful investors in the world, and one of the world’s wealthiest men of the world.

#16. Arbitrage

When we talk about arbitrage, we are talking about buying an asset on one market, selling it on another, and making profits from the price difference between the two.

#17. Ask and Bid

Ask refers to a trader’s selling price for their shares or assets. On the other hand, a bid is the price a trader is willing to pay to buy a currency pair.

#18. Asset Allocation

Asset allocation is an investment strategy that balances risk and reward by dividing a certain percentage of investment across different assets.

#19. Averaging Down

This investment strategy involves buying additional currency pairs after their price has fallen, resulting in a lower average purchase price.

Read More: What is earnings season, and why is it important for traders?