Stock market terms can be confusing for new investors. “Volatility”, “short position”, “long position” etc. Many words are just some of the terms you will encounter as you enter the investing world.

““I’m thinking about getting into the stock market, but I don’t understand anything that’s being said.” In this content, where we will reduce the confusion among new investors to some extent, we will talk about the basic terms that every investor should learn.

First of all, “What is the stock market?” Let’s answer the question.

Stock exchange, shares, etc., accompanied by state-regulated rules. It is the place where financial instruments are traded. In simpler terms, the stock market is a financial marketplace that trades at certain hours.

The stock market, which works with an electronic system, provides information about certain assets. open, orderly and fair to everyone offers a trading opportunity.

In summary, the stock market is the basis for the investment instrument you want to trade. a regulated market We can say that this is so.

So how does the stock market work?

Shares are traded on the stock exchange, which remains open between certain hours, at prices determined based on supply and demand. These transactions with auction logic occurs.

The buyer wants to buy a stock at the lowest level and the seller wants to sell it at the highest level. Buyers and sellers come together with intermediary companies at the agreed price carries out purchase and sale transactions.

Prices according to supply and demand As established, stock prices fluctuate throughout the day.

Let’s start with the basic concepts:

• Effects: It is the name given to movable securities such as stocks, bonds and bonds, which are considered investment instruments.
• Stock: It is an official document expressing the shares of partners who own shares of a particular company. Stocks give their owners rights such as receiving a share of company profits and voting on company matters.
• Dividend: It is the dividend that a company pays to its partners.
• Stock market index: Stock market indices such as Dow Jones, Nasdaq, S&P500, Ftse, BIST 100 and BIST 30 are a value composed of shares and calculated by taking these shares into account in different proportions. The share of each of these stocks in the index differs from each other. Examples of stock indices are Dow Jones, Nasdaq, S&P500, FTSE, BIST 100 and BIST 30.
• Market value: It is the concept that defines the value of an asset or company in the financial market. It is calculated by multiplying the number of outstanding shares of a company by the current market price.
• Portfolio: Stocks, bonds, etc. It is a combination of financial investments created with different investment instruments.
• Bid: It is the bid price at which investors agree to purchase a financial asset.
• Lot: It is the name given to the trading unit of shares. For example, one ticket means one share of stock.
• Starting price: It is the first price level traded when the market opens for trading.
• Closing price: It is the last price level traded when the market closes.
• Harka offer: It means that a private company starts trading on the stock exchange by opening its shares for public purchase for the first time.
• Bear market: It is called a market in which prices fall.
• Bull market: It is called a market where prices rise.
• Product: Products such as silver, gold, copper, oil, natural gas and cotton, which belong to the commodity category and are traded in the markets, are mentioned.

Conditions for investment strategies:

• Long position: A position obtained through the purchase of an asset on the assumption that its value will increase.
• Short position: A position obtained by borrowing an asset on the assumption that its price will fall.
• Day trading: Strategy based on buying and selling on the same day.
• Speculation: It is the buying or selling of a financial asset with the expectation of its future value.
• Cross trading: In a transaction on the financial markets, the buyer and the seller are the same person.
• Lever: It is an investment strategy that requires the use of debt to further increase profits from investments.

Let’s continue with the analysis terms:

• Fundamental Analysis: It is a type of analysis that helps analyze the status and potential of a company with the help of financial statements and company news.
• Technical analysis: It is a type of analysis that uses data such as the price and volume of a financial asset to predict future price movements using charts.
• Support level: The price level that is believed to prevent the price of a financial asset from falling.
• Resistance Level: The price level that is believed to prevent the price of a financial asset from rising.
• Variability: Fluctuations in the price level of a financial asset over a period of time.
• Formation: It is the name given to the phenomena that occur due to the formation of certain shapes on the price chart of an asset.
• Indicator (technical indicators): It is the name given to technical analysis tools used to make future price predictions as a result of analyzing past data.
• Trendline: It is the name given to the line that shows the general trend of the price of an asset.

Conditions for order types placed on the exchange:

• Order: It is the name given to the buy and sell orders given on the stock exchanges.
• Limit order: It is an order to buy or sell a financial asset at a predetermined price.
• Stop-loss order: A stop-loss order, which means ‘stop loss’, is a sell order to sell a financial asset when it reaches a price determined by the investor.
• Stop limit order: It is a type of order that helps investors limit their losses or protect their profits.

Let’s move on to the terms and conditions for financial products

• Derivatives: These are transactions typically conducted between two parties due to the investor’s prediction of the future value of an asset’s price. Some derivative products include:
• Futures: These are agreements to buy or sell a financial asset at a future date at a price agreed upon today.
• forward: Forward, known as a forward investment contract, is a contract to deliver a financial asset at a predetermined value at a future date.
• Exchange: Swap contracts entered into between two parties are the process of exchanging two assets of equal values.
• Choice: It is a contract that provides the right to buy or sell an asset at a predetermined price within a specified term.
• Call option: It is the right to buy something at a certain price.
• Put option: It is the right to sell an asset at a certain price.
• Bond: It is a debt instrument issued by the state or a private company for the purpose of making loans and selling them to investors at a certain interest rate.
• Bond: They are short-term debt instruments that are repurchased by paying interest on their face value within a specified period.
• Storage location: It is the sale of a short-term security, such as a Treasury bill or a government bond, with the promise that the seller will buy it back at the end of a specified period.
• Reverse repository: It is the process of buying a financial asset for a period of time and then selling it again.
• Eurobond: These are securities issued by a country or institution in a currency other than its own national currency.

People who will enter the stock market Essential scholarship conditions With this content we put together, we wanted to illuminate the path of investors in their stock market adventure. Let us end our content here by reminding you that our content does not constitute investment advice.

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