Basic Material
Important Terms
Let’s discuss some important terms in the world of stocks that need to be understood:
Basic Terms
1. Stock: A small ownership share in a company. 2. Stock Exchange: The official place for buying and selling stocks. 3. Investor: A person who buys stocks with the expectation of making a profit. 4. Dividend: A company's profit distribution to shareholders. 5. Capital Gain: The profit gained from the difference between the selling and buying price of a stock. 6. Lot: A unit of stock in trading, usually 1 lot = 100 shares.
Terms Related to Price Movements
1. Bullish: A market condition where stock prices tend to rise. 2. Bearish: A market condition where stock prices tend to fall. 3. Volatility: The degree of stock price fluctuations over a certain period. 4. Trend: The direction of stock price movements over a specific time, either upward (uptrend), downward (downtrend), or sideways (moving within a price range).
Terms Related to Analysis
1. Fundamental Analysis: A method of analysis focusing on a company's core factors such as financial performance, industry prospects, and economic conditions. 2. Technical Analysis: A method of analysis focusing on historical price patterns and trading volumes to predict future price movements. 3. Stock Index: A number representing the average price movement of a specific group of stocks (e.g., IHSG in Indonesia).
Other Terms
1. IPO (Initial Public Offering): The first time a company offers its shares to the public. 2. Liquidity: The ease with which a stock can be bought or sold without causing significant price changes. 3. Market Capitalization: The total value of a company, calculated by multiplying the stock price by the number of outstanding shares. 4. Portfolio: A collection of investments owned by an investor. 5. Broker: An intermediary that helps investors conduct stock buying and selling transactions.
Common Terms
1. Blue Chip: Stocks of large, established companies with a solid reputation. 2. Growth Stock: Stocks of companies that are experiencing rapid growth. 3. Value Stock: Stocks of companies considered undervalued, where the price does not yet reflect their fundamental value.