Glossary

 The trading game can be confusing, made even more so by the use of terminology that resembles a foreign language or abbreviations that are commonly used, but rarely ever explained. 
Bull & Bear Invest aim to answer your queries and get you well on your way to understanding how the stock market communicates. 

We have drawn together some of the most commonly used terms and provided an explanation. 

A

B

Basic Order: Otherwise known as a market order, this is a method of purchasing or selling shares based on the best available price at the time of submission.

Bear: A style of trading that is collective and careful, often selling shares to be protective of their value.

BOD: Board of Directors 

Bull:  A style of trading that is aggressive and will buy shares at a potential risk.

C

D

DYOR: Do Your Own Research 

E

F

FSP : Final Sale Price - This is usually used in the context of a business takeover deal, meaning the definitive price that the business sells for.

G

H

I

J

K

L

Limit Order: A method of purchasing and/or selling shares by programming the price you intend to complete the transaction. If the share price meets or exceeds the stated price, then the transaction is processed as a Basic/Market Order. 

M

MM: Market Makers

Market Order: Otherwise known as a basic order, this is a method of purchasing or selling shares based on the best available price at the time of submission.

N

O

P

Q

R

RNS: Regulatory News Service - Articles released on behalf of the appropriate company as a method of communicating regulatory and non-regulatory information, helping them to comply with the disclosure obligations set out by regulators around the world.

S

Short Selling: A method of investing by borrowing shares from a broker to sell elsewhere. A profit is made if the share price drops and the investor must pay the difference should the share price increase. 

SP: Share Price - The value of one individual share of that particular company.

Stop Loss:  A method of selling shares when the share price reaches or exceeds a set price. This method is used to automatically sell shares upon the drop of the share price, hence the name stop loss. 

T

U

V

W

X

Y

Z