Stock Terminology 2022
AH Correct Answer: After Hours - After 4pm EST when the market closes.
bagholder Correct Answer: informal investment term used to describe an investor who holds a position in a stock which decreases in value until it is worthless. Don't be a bagholder
catalyst Corr...
Stock Terminology 2022
AH Correct Answer: After Hours - After 4pm EST when the market closes.
bagholder Correct Answer: informal investment term used to describe an investor who holds a position
in a stock which decreases in value until it is worthless. Don't be a bagholder
catalyst Correct Answer: event that has the potential to cause the price of a security to move up or
down. These are events that we are aware are coming. An example: Apple comes out with the new
iPhone event.
dead cat bounce Correct Answer: temporary recovery after a ticker falls drastically.
DD Correct Answer: stands for 'Due Diligence'. It is a very popular acronym in the trading community. It
means research in essence.
EOD Correct Answer: end of day
float Correct Answer: refers to the number of shares that are available for trading to the public.
FOMO Correct Answer: Fear of Missing Out. FOMO happens quite often and it can really hinder traders
performance.
Halt Correct Answer: Trade halted. This means that a ticker was halted due to volatility or news, pausing
all trading.
IPO Correct Answer: stands for 'Initial Public Offering'. This is the price of one share when a company
first goes public on the stock market.
LOD Correct Answer: Low of the day
Low Float Correct Answer: referring to the amount of shares that a company has available for trading.
Tends to be more volatile, meaning they can move quickly. Basics of Supply and Demand
Mental Number Correct Answer: whole and half numbers are what we consider mental numbers.
Traders like to see numbers hit whole and half number goals... EG: $XYZ is at $0.94, mental number is $1
PDT Correct Answer: Pattern Day Trader
PM Correct Answer: Pre-market (refers to the time period before the market opens)
R/S Correct Answer: refers to 'Reverse Split'. This is a reduction in the number of a company's traded
shares that results in an increase in the par value or earnings per share. (investopedia)
, Runner/Running Correct Answer: refers to a ticker that is making gains rapidly. Example: Tesla was at
300 and now its at 500 in one hour, it is running!
R2G Correct Answer: Red to Green
Scaling (in or out) Correct Answer: refers to the trading strategy of buying or selling in portions.
Sympathy Correct Answer: refers to tickers that move with a leader or industry. For example, if Tesla is
doing amazing, many electric vehicles will follow suit. In that case they would be considered sympathies.
Watching/Watchlist Correct Answer: if a member posts this it means that they are keeping a close eye
on a ticker to see what it does. Could be bad or good.
WW Correct Answer: Worth Watching... similar concept to watching.
C Correct Answer: Call option
P Correct Answer: Put Option
BTO Correct Answer: buy to open
STC Correct Answer: sell to close
ATM Correct Answer: at the money
OTM Correct Answer: out the money
ITM Correct Answer: in the money
Lock Correct Answer: book profit
Out Correct Answer: exit from the position or dispose the option
Cut Correct Answer: reduce loss or sold position with loss
SL Correct Answer: stop loss
UT Correct Answer: up trend
DT Correct Answer: down trend
LOD Correct Answer: low of day
HOD Correct Answer: high of day
R/R Correct Answer: reward to risk ratio
D/G Correct Answer: downgrade
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ElonMusk. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
