Terms And Definitions

Some conditions of the stock market investment and definitions database, you need to know to understand what is happening in the market. You can find these conditions and learn more about them in exchange for Dummies 101 books I'll do a post about. Meanwhile, here are some of the most important things you learn in the most securities and tutorials.

Dow - When a reporter from CNBC Dow refers, it refers to the Dow Jones Industrial Average. This is the average share price of 30 titles most important and influential on the New York Stock Exchange. Dow is generally considered an indicator of the state of the U.S. economy.

S & P 500 - This is another company made the call set up by credit rating agency Standard & Poor's, where the S & P. Part 500 refers to how many companies are included in this index. S & P has a set of criteria for selecting the 500 largest U.S. companies. This is still used to indicate the health of the U.S. economy and the stock market.

Share Price - the price of a share of a company.

Market capitalization - also known as market value, it is a measure of firm size. It is calculated by taking the share price multiplied by the number of shares outstanding. The 3 main categories of market caps are large-cap, midcap and small cap.

P / E Ratio - The price of relative income. It gives an indication of the actual amount of money a company earns in relation to the stock price is everything. If your P / E is high, it means the price is much higher than they were returned, which means there is a market expectation that the population will increase at some point in the future income will increase significantly, or both.