Terms And Definitions

Here are some of the stock market, investing in the criteria and definitions need to know to understand what is happening in the market. You can find more information about these terms and conditions of the stock market for dummies 101 books that I finally did post. In the meantime, here are some important details that you could learn most of the stock prices 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 a company re-assembled compiled by credit rating agency known as the Standard & Poor's, so that the S & P 500 part refers to how many companies are included in this index. S & P is the criterion for choosing the 500 most important companies of the United States. This in turn is used to indicate the health of the U.S. economy and stock market.

Share price - the price of a share of a corporation.

Market capitalization - also known as market capitalization, is a measure of company size. Is calculated as share price and multiplying by the number of shares outstanding. The three main types of market capitalizations are large capitalization and small capitalization MidCap.

P / E ratio - The price relative earnings. It gives an indication of how much money a company is relative to stock prices. If their P / E is high, it means that the price is much higher than they have income, which means that there is a market expectation that the stock will increase in future income increase significantly, or the two parts.