Small dictionary to invest in the stock market

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There is no doubt that greater familiarity with trade terms will help investors to be much better prepared to trade in the stock markets. You can not forget that the bag is used very special terms, where English words predominate. This causes some savers to have some other problem in channeling their movements to make the available capital profitable. With a little dedication and a good dose of will they will be able to correct this problem that is presented to them in the investment sector.

On the other hand, it is also true that it will be a value added that you can be in greater contact with these words. Because in reality, it is true that all the terms related to investment are those that will help you in your day to day in the field of economics. Therefore, it is worth an effort of these characteristics. Because the reward can materialize in a higher profitability of the operations made in the equity markets.

Short dictionary to operate

TO rating agency It is an entity that marks the solvency of any issuer of securities in the market. Among the best known are some of special importance such as Moody's, Standard & Poor's and Fitch.

In the contracting of certain financial instruments other than the sale of shares on the stock market, which is known as financial appeasement. Well, this really means the difference between the cost of the external resources that a company owns and the profitability that is achieved with the assets acquired with those resources.

Another of the most common terms in the stock exchanges is the one that has to do with the balance of payments and that refers directly to the comparison of the income and payments of a national economy.

No es de menor relevance he bear market and that it is an Anglo-Saxon expression that indicates a downtrend in the stock market. You will often see it under this expression and not in Spanish, especially when it refers to international financial markets.

When talking about a listed company, it is very common to talk about its tax benefit. Well, from now on you should know what we are talking about about a part of your earnings and that it is characterized because they are considered a taxable base for the purposes of Corporation Tax. Therefore, it has nothing to do with the gross profit of the companies.

Also these days the word appears with some frequency in the media Junk bonds. It is nothing less than a fixed income security issued with a high interest by high risk companies.

Effect on shares

Other words are more linked to what is technical analysis or your own behavior in financial markets. As is the specific case of Buy-back and whose real meaning is the repurchase of shares. Or as an example, head and shoulders than in technical analysis, a figure that marks a change in the market trend. It is also known among small and medium investors as shoulder-head-shoulder.

On the other hand, when talking about stocks, the thermal is used a lot market capitalization which is something as simple as the global price of all the shares of a company that is listed on the stock markets. Being a constant in any fundamental analysis worth its salt.

On the other hand, one cannot forget the words that are derived from the same operations that originate in companies that are listed on the equity markets. Who has never heard in the specialized media what cash flow? For those who do not know what this Anglo-Saxon term is, it will be necessary to tell them that it is basically the cash that a company generates after paying expenses and collecting sales. It is a very important piece of information to examine the quarterly results that companies that are listed on the stock market must present.

On the other hand, there are terms that small and medium investors are more used to, fundamentally those who opt for more speculative operations and which refer to those popularly recognized as peas. In this circumstance, it is part of the stock market jargon that refers to securities with very little liquidity and that have very few securities in negotiation. They are characterized because they can generate significant capital gains, but also carry a huge risk due to the great risk involved in their operations.

Financial cycles in the stock market

Regarding this important area of the economy, the financial cycles they are directly linked to the situation of the equity markets. Among other reasons because they determine the time period of an established trend and that it can be bullish, bearish or even lateral. It is very important to know them because it can undoubtedly give the appropriate keys to access or exit the stock exchanges. Above other considerations of a technical nature or even from the fundamental point of view of the companies.

Another word that is in vogue in all the specialized media is that which refers to the closure. What does this very normal word mean at first glance? Well, something as simple as the moment the contract officially ends in a bag. In other words, when the equity markets close and the Spanish Stock Exchange coincides with 5.30pm. Like the billing denomination and in this case it refers to nothing less and nothing more than the billing of a company, but never in what is linked to its possible benefits. They are concepts that ultimately help the investor to make their decisions with greater guarantees of success. Even when they are ensuring all kinds of benefits of any kind.

Investment diversification

In this section our readers will have heard on more than one occasion strategies to develop a correct diversification in our investments. In case someone still does not know, it will suffice to say that this non-complex word means that it is a method based on not placing all the assets in the same type of investment. Or what is the same, not investing all the money in the same basket, be it shares in the stock market, investment funds, warrants or even fixed-term bank deposits. Rather, it should be deposited in multiple financial instruments if feasible for small and medium investors.

Nor should we forget what dividend on account and the one that is unique. The first of them is precisely the profit distributed as an advance of the final results expected and received by the shareholders of the companies that pay it frequently. Although on the contrary, the single dividend is the one that is collected in a single time, instead of delivering an interim dividend and others, such as the complementary one. On the other hand, who has never sold a financial asset below market prices. Well, they may have gone through this unprofitable procedure without knowing that what they were doing at the time was dumping.

Benefits, forecasts, etc.

The call EBITDA it is always present in the trading results of publicly traded companies. Well, nothing is easier than translating it directly to show that we mean profit before interest, taxes, amortization and provisions. It is a very important piece of information to establish if it is the right time to invest money in a company. On the other hand, financial analysts pay close attention to this important economic parameter and impact its importance for analyzing stock prices.

Another of the most used terms in relationships with the world of money is to solve. In this specific circumstance we are talking about another financial asset such as currency. In this way, we are talking about the exchange rate that central banks establish day by day for their currency against others. Where the dollar and the euro are the main reference sources in a very active market characterized by its enormous volatility when setting daily changes. While, on the other hand, the forex It is the foreign exchange market that enables investors from all over the world to exchange currencies between suppliers and those who demand them. In conclusion, free float refers to the part of the capital stock that is freely traded on the markets.