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Stock market terminology

Bull market:

There are more buyers than sellers in the stock market, so the stock market is bullish.

 

Bear market:

A bear market is the opposite of a bull market. There are more sellers than buyers in the stock market.

 

Opening price:

It refers to the price of the first transaction of the stock after the opening of the market on that day. If there is no transaction price within 30 minutes after the market opens, the closing price of the previous day shall be the opening price.

 

Closing Price:

Refers to the price of the last stock traded daily, i.e., the closing price.

 

Highest Price:

It is the highest of the prices traded on that day. Sometimes the highest price is only one, sometimes it is more than one.

 

Lowest Price:

It is the lowest of the prices traded on that day. Sometimes the lowest price is only one, sometimes it is more than one.

 

Performance Stocks:

It is the stocks of companies that have an excellent track record but are growing at a slower pace. 

These types of companies are strong enough to withstand a recession, but these types of companies do not provide you with encouraging profits. Since these companies are more mature and do not need to spend a lot of money to expand their business, the main purpose of investing in them is to collect dividends.

Also, don't invest in these stocks with a high P/E ratio, and pay attention to the history of stock price volatility during economic downturns.

 

Popular stocks:

Refers to stocks with large trading volume, strong liquidity, and high stock prices.

 

Growth stocks:

It refers to the stocks issued by such companies continuing to grow in sales and profits faster than the country and industry as a whole. 

These companies are usually ambitious, focus on scientific research, and set aside large amounts of profits for reinvestment to fuel their expansion.

 

A round lot:

It is an internationally used unit for calculating the number of shares traded. In stocks, a round lot is considered 100 shares or a larger number that can be evenly divided by 100.

 

Volume:

The number of shares traded reflects the volume of transactions. This is generally measured by the number of shares traded and the amount traded. Both indicators are currently available for the Shenzhen and Shanghai markets.

 

Price:

It refers to the unit of increase or decrease of the call price. The price level varies according to the price per share of the stock. 

Take the Shanghai Stock Exchange as an example: $0.10 for every last $100, $0.20 for every $100-200, $0.30 for every$200-300, $0.50 for every $300-400, and $1.00 for every $400 and above.

 

Suspension:

The stock exchange suspends its trading in the stock market due to the continuous rise or fall of stock prices due to certain news or certain activities. After the situation is clarified or the company returns to normal, the trading will be resumed and listed on the exchange.

 

Change:

The daily closing price is compared with the previous day's closing price to determine whether the stock price rises or falls. It is generally indicated by the "+"-" sign on the bulletin board above the trading desk.

 

Limit Move:

The most significant increase (decrease) in the stock price in one day as specified by the Exchange is the percentage of the previous day's closing price, which cannot be exceeded, or trading will be automatically halted.

 

Open high:

It means that the opening price is much higher than the closing price of the previous day.

 

Open low:

It means that the opening price is much lower than the closing price of the previous day.

 

Be dull:

It means that investors do not actively buy and sell, and take a wait-and-see attitude so that the stock price changes vary little on the day. 

 

Consolidation:

It means that after a period of sharp rise or fall, the stock price begins to fluctuate slightly and enter a stage of stable changes. This phenomenon is called consolidation, which is the stage of preparation for the next major change.

 

Gaps:

Refers to the strong bullish or bad news stimulus, the stock price began to fluctuate sharply. A gap usually occurs before the start or end of a major stock price movement.

 

Price-earnings ratio (or P/E ratio):

The price-to-earnings ratio is the ratio of the stock price per share to the earnings per share. 

Price-to-earnings ratio = common stock market price per share ÷ common stock annual earnings per share

The numerator in the above formula is the current stock market price, and the denominator can be the last year's earnings or the forecast earnings for the next year or several years. 

The price-earnings ratio is one of the most basic and important indicators for estimating the value of common stocks. It is generally believed that it is normal for the ratio to remain between 20-30. A very small ratio indicates that the stock price is low with low risks, and it is worth buying; too large indicates that the stock price is high with high risks, so you should be cautious when buying. But stocks with high P/E ratios are mostly hot stocks, and stocks with low P/E ratios may be unpopular stocks.

 

Call-back:

A phenomenon in which the price of a stock falls back temporarily as it rises too fast.

 

Rebound:

It refers to the phenomenon that in a falling price quotation, the share price sometimes rallies temporarily under the support of buyers because it has fallen too fast. The rebound is smaller than the decline, and the downward trend resumes after the rebound.

 

Long:

A person who is optimistic about the stock's future market buys the stock first, waits for the stock to rise to a certain price, and sells the stock for the difference.

 

Short sellers:

An investor who believes that the stock has risen to its peak and will soon fall, or when the stock has already started to fall, thinks it will continue to fall and sells at the high price.

 

Long Market:

Also known as a bull market, a market in which stock prices generally rise.

 

Short Markets:

A market in which stock prices are on along-term downward trend, and in a short market, stock prices move in small and large declines. Also known as a bear market.

 

Long Flip:

A long position that was originally bullish on the price, but changed its mind and sold its shares, sometimes with borrowed shares, in an action known as a short flip or long flip.

 

Short-flip-long:

The act of buying back, and sometimes buying more shares, of a stock that has been sold, which is called shorting.

 

Short Buying:

A form of speculation in which a stock is expected to rise in price and is therefore bought, and then sold, before actual delivery, to collect the difference or make up the difference in actual delivery.

 

Short selling:

A speculative act of selling stock in anticipation that the stock price will fall, thus making up the sale of the stock as if it were sold before actual settlement occurs, and settling only the difference at the time of settlement.

 

Bear news:

Factors and news that contributed to the stock's decline in favor of the shorts.

 

Bull news:

It's the factors and news that spurred the stock to rise in favor of the bulls.

 

Hold up:

It means that the stock price is expected to rise and the stock price will fall after buying, or the stock price is expected to fall, but the stock price will rise after the stock is sold. 

The former is called the bulls and the latter is the bears.

 

Large investors:

These are large investors, such as consortia, trusts, and other groups or individuals with large amounts of capital.

 

Middle investors:

This refers to investors who have a large amount of investment.

 

Retail investors:

It is the individual investor who trades a very small number of shares.

 

Broker:

A person who executes a client's order to buyor sell securities, commodities, or other property, and receives a commission for doing so.

 

Short Snapping:

Buying at a low price in anticipation of arising share price and then selling at a high price shortly. Or expect the share price to fall, sell at a high price first, and then wait for the opportunity to repurchase at a low price in the short term.

 

Consolidation:

After a period of rapid upward or downward movement, the price of a stock encounters resistance or support and moves slightly up or down, making a change of hand.

 

Pull-up:

A pullback is an unusual way to raise the price of stock significantly. Usually, large investors will sell out after a pullback to make a huge profit.

 

Squeeze:

It is an unusual way to depress the price of a stock. Usually, large investors buy in large quantities after the suppression to make huge profits.

 

Dark Horse:

A stock that has doubled or multiplied in price within a certain period.

 

White Horse:

It means that the stock price has formed along, slowly rising channel, with some room to rise.

 

Deception line:

Large investors take advantage of stock investors' superstitious belief in technical analysis data and charts to deliberately lift and suppress stock indices, resulting in the formation of a certain line in the technical charts to lure stock investors to buy or sell in large quantities, thereby achieving their goal of making a fortune. This type of deceptive technical chart line is called a cheat line.

 

Technical Analysis:

An analytical study of markets and stocks based on supply and demand. Technical analysis studies price movements, trading volumes, trading trends and patterns, and charts representations of these factors to predict how current market behavior may affect future supply and demand for securities and individual holdings of securities.

 

Fundamental Analysis:

An analysis of a business based on sales,assets, earnings, products or services, markets, and management. Also refers to the analysis of macro-political, economic, and military dynamics to predict their impact on the stock market.

 

Unlisted stocks:

Shares that are not registered and listed onthe stock exchange.

 

Proxy:

Written evidence of the shareholder's appointment of another person (other shareholders) to exercise voting rights on his or her behalf at a general meeting of shareholders.

 

Turnover:

The number of shares traded as a percentage of the number of shares listed and outstanding on the Exchange.

 

Warrants:

A certificate issued to the original shareholders of a company to purchase a certain number of shares at a discounted price when the issuing company issues new shares. Warrants are usually time-limited and expire after a certain period. They expire and can be sold or transferred by the holder during their term.

 

Exemptions:

The closing price of a stock on the day before the stock is ex-dividend minus the difference between the rights included in the ex-dividend.

 

Payout:

The closing price of a stock on the previous day minus the dividend paid by the listed company is called a payout.

 

Cum rights:

Any stock with rights that have not been delivered is referred to as an inclusion right.

 

Filling Rights:

An increase in the share price after the ex-rights, which makes up the difference between the ex-rights and the share price, is called a fill-in.

 

Share increment:

Listed companies often undertake capital increases (covered allotments) or capital reserve additions (uncovered allotments) for business needs.

 

Rights Issue:

When the Company issues additional new shares, they are allocated to shareholders for subscription at a special price (below market price) based on the number of shares owned by the shareholders.

 

Sit in a sedan chair (Front running):

When the stock price is expected to rise, buy at a low price and sell for a profit when many retail investors follow, and the stock price rises.

 

Carry in a sedan chair:

The result is that the price of the stock is inflated so that others can profit from it, while the price of the stock is notlow enough to make a profit.

 

Get off the sedan chair:

Investors make rallies and settle for the next transaction.

 

Resistance lines:

When the price of a stock rises near a certain level, if there is a large amount of selling, the stock stops rising or even goes back down.

 

Support line:

The price at which a stock drops to near a certain level, such as the level at which it stops falling or even rises if there is a lot of buying.

 

Gap:

When the stock market is stimulated by strong positive or negative news, the stock price starts to jump sharply, when it goes up, the opening or lowest price of the day is higher than the closing price of the previous day by more than two reporting units, it is called "gapup"; when it goes down, the day's day market or the highest price is lower than the previous day's closing price by two reporting units, and in one day'strading, it goes up or down by more than one reporting unit, it is called"gap down".

 

Fill in the gap:

It means that a short position that was not traded when the gap occurred will be filled, i.e. the stock will return to the pre-gap price over some time to fill the gap.

 

Retreat:

A phenomenon in an uptrend where the stock price rises too fast and falls back to adjust the price.

 

High price:

The highest price at which an individual stock moves from a long market to a short market.

 

Breakout:

A price movement in stock after a period of trading.

 

Bottom-finding:

The stock stops falling and rallies when it continues to fall to a certain price level, and so on one or more times.

 

Head:

When the stock rises to a certain price level, it meets resistance and slips.

 

Pegging:

Buy the stock.

 

Pegging out:

Sell the stock.

 

Near-term Trend:

The near-term trend refers to 20 to 30 days in the past from now.

 

Full Delivery:

It is a method of trading in the settlement power specifically created by the securities authorities for shares of are organized company or a public company that is in significant trouble.

 

Order Washing:

To achieve the purpose of speculation, it is necessary to allow low-priced and weak-willed sedan passengers to get off the sedan on the way to reduce the pressure on the upshift and at the same time increase the average price of stockholders.

 

Knock-to-knock transfer:

A knock-to-knock transfer is a transfer transaction in which a broker buys a stock at a low price, receives a commission from the customer, and then sells it to another customer at a higher price, from which he makes another profit on the difference.