Basic terms in finance
Long refers to investors who are optimistic about the stock market and expect the stock price to be bullish, so they buy stocks at low prices and sell them when the stock rises to a certain price to obtain the difference. Generally speaking, people usually call the stock market where the stock price maintains a long-term upward momentum. The main characteristic of the stock price changes in the long market is a series of big rises and small falls.
What is buying short?
Investors predict that the stock price will rise, but their own funds are limited and cannot buy a large amount of stocks, so they pay part of the margin first, and raise funds from the bank through brokers to buy stocks, and sell them when the stock price rises to a certain price to obtain the difference income.
What is a short market?
Short sellers are investors and stock vendors believe that although the current stock price is relatively high, they look bad about the stock market outlook and expect the stock price to fall. Therefore, they sell the borrowed stocks in time and buy when the stock price falls to a certain price to obtain the difference. This trading method of selling first and then buying and earning the difference is called short sellers. People usually call the stock market where the stock price has a long-term downward trend. The characteristics of the stock price change in the short market are a series of big drops and small rises.
What is short squeeze in stocks?
That is, short sellers are fighting short sellers. Stock holders in the stock market unanimously believe that the stock will fall sharply on that day, so most people snatch the short seller hat and sell stocks. However, the stock price did not fall sharply on that day and could not buy stocks at a low price. Before the stock market ended, short sellers had to compete to make up for it, resulting in a situation where the closing price rose sharply.
What is short selling?
Short selling means that investors predict that the stock price will fall, so they pay the mortgage to the broker and borrow the stock and sell it first. When the stock price falls to a certain price, they buy the stock, and then return the borrowed stock, and obtain the difference income from it.
What is profit?
Positive refers to information that stimulates stock price rise, such as improvement in operating performance of stock listed companies, lower bank interest rates, sufficient social funds, relaxation of bank credit funds, market prosperity, etc., as well as other information that is beneficial to stock price rises in political, economic, military, diplomatic aspects.
What is negative
Bad negative refers to information that can cause stock prices to fall, such as deterioration in operating performance of listed stock companies, bank tightening, rising bank interest rates, economic recession, inflation, natural disasters, man-made disasters, etc., as well as other adverse news that prompts stock prices to fall in political, economic, military, diplomatic and other aspects.
What is a gap?
After the stock price is affected by positive or negative, it will fluctuate significantly. When the stock price rises by positive or negative, the opening price or lowest price on the day on the exchange is higher than the closing price of the previous day and more than two declaration units. When the stock price falls, the opening price or highest price of the day is lower than the closing price of the previous day and more than two declaration units. Or in a day's trading, it rises or falls more than one declaration unit. The above phenomenon of large-scale jump in the stock price is called a gap.
What is the opening price
Opening refers to the first transaction of a certain securities on each business day on the stock exchange. The transaction price of the first transaction is the opening price of the day. According to the regulations of the Shanghai Stock Exchange, if there is no transaction within half an hour after the opening, the price of the previous day is the opening price of the day. Sometimes a securities have no transaction for several consecutive days, the stock exchange will propose a guide price based on the price trend of the customer's entrusted for the securities trading, and prompt it to be used as the opening price after the transaction. The average price or average issue price of the securities listed on the first day is the opening price after the counter transfer on the day before the listing.
What is the closing price?
The closing price refers to the transaction price of a certain securities before the end of a day's trading activity on the stock exchange. If there is no transaction on the same day, the most recent transaction price is used as the closing price, because the closing price is the standard of the market on the day and the basis for the opening price of the next trading day, and the future securities market conditions can be predicted based on this. Therefore, when investors analyze the market, they generally use the closing price as the basis for calculating.
What is ex-dividend?
Chapter completed!