Stock Quotes: Understanding the Basic Terms

To join a club, one thing you’ve got to have is parallel interests. It’s important that you also share the same goals, and above all, speak the language they speak. Not speaking their lingo can make you feel let out, which is no different from being left out, which would have corresponding consequences. This is most definitely true for the stock market. The said business or “club’s” end goal is none other to become rich. They also have a set of terms, which is considered to be their secret language. Understanding it is also very important; otherwise you won’t be able to get any work done, which means no money for you. nnThat’s what today’s discussion is all about; stock market terms. So without any further delay, let’s get on with it: you’ve probably heard of the term “stock quotes”, right? But do you even know what the hell it means? If you don’t, read this: stock quotes are the prices tagged on anything selling on an exchange. That “anything” can be for a stock, mutual fund, Exchange Traded Fund (ETF), or an option. The prices or stock quotes are what tell you how much you can buy or sell a particular instrument on the exchanges – as simple as that. Now that you know the basic and understand the first step to deciphering the market language, it’s time for you to comprehend the following: there are two types of stock quotes, the first being real time quotes. nnHere the prices pertaining to a particular instrument stated are instant or real time. The second type would be delayed quotes, which is pretty much self-explanatory. Here the prices pertaining to a particular instrument stated or are delayed – by how long? The average duration it does delay would be something around 15 minutes. Anyways, what it basically means is that the prices pertaining to a particular instrument were as is, around 15 minutes ago from the time it was shown. Let’s move on to the next pair of terms you shouldn’t miss, which is “bid” and “ask”. Bid is what you can sell your mutual fund, or whatever it is you’ve invested in, for; the selling price if you will. nnThe ask is what you buy the stock, or whatever it is you’ve invested in, for; or in other words the buying price. To conclude, which of the two variations of quotes (as discussed earlier) you should invest in will depend entirely on you as the market trader. According to statistics, the majority of the investors choose to receive real time quotes, as they tend to be more accurate, as they are flashed instantly. You can get these quotes from a stock broker, taken that you maintain and keep an account with the guy. Another source would be the Internet. nnHere you can get them for free, depending on where you look. The terms we’ve hashed out are the basics, and are fundamentally what makes the money market tick. To be successful, it’s vital that you expand your knowledge on the market, familiarize yourself with other terms and understand the trends.