Absolute advantage can be the basis for large gains from trade between producers of different goods with different absolute advantage.
Trading in the stock market means the purchase and sale of a stock in the hope of making a profit. Like, bought a company's stock and then sold it after some time its price went up. This time can be from a few minutes to a few weeks.
The process of buying and selling of goods and services is called trade.
When you place a trade you are either buying or selling a financial instrument. There are buyers and sellers in every market. When you open a buy position you are essentially buying an asset from the market. And when you close your position, you sell it back to the market. If you want to trade at the selling price slightly below the market price you open a short position.
The ask is the price a seller is willing to accept for a security, which is often referred to as the offer price
A bid stipulates both the price and the quantity that the buyer is willing to purchase. When you are placing your bid for a stock, you are competing against all other buyers in the market.
A bid-ask spread is an amount by which the asking price exceeds the bid price for an asset in the market.
A bull market is the condition of a financial market in which prices are rising or are expected to rise.
A bear market exists in an economy that is receding, where most stocks are declining in value.
By this, a trader can ensure that the securities are not bought at a high price and not sold at a low price.
A market order is an order to buy or sell a security immediately.
A day order can be a limit order to buy or sell a security, but its duration is limited to the remainder of that trading day.
When the stock market rises and falls more than one percent over a sustained period of time it is called a volatile market.
An investor who hopes to benefit from an upward price movement in an asset will go long on a call option.
Averaging down is an investing strategy in which a stock owner purchases additional shares of a previously initiated investment after the price has dropped further.
The market capitalization of a company is obtained by multiplying the number of outstanding shares of a company by the market value. Companies in the stock market are classified based on its market cap. Here we can say that market capitalization is the best way to measure the height of a company.
This term refers to the regular shares a company has issued to the public that are available for investors to trade.
This term reference to the maximum number of shares a company is allowed to issue to investors, as laid out in its articles of incorporation.
This is an Initial Public Offering that happens when the private company becomes a publicly-traded company.
A secondary offering is the sale of new and closely-held shares by a company that has already made an initial public offering.
Some companies keep giving some share of their profits from time to time to their shareholders. She gives this share of the profits as dividend to the shareholders. These are also called dividend yield stocks.
Broker is also called broker or broker in Hindi. A broker can be a person or firm that charges a fee or commission to buy and sell an order submitted by the investor.
The stock market is a market where financial instruments such as stocks, mutual funds, currencies, bonds, etc are traded. Like any other market, it operates on the law of supply and demand.
An investment portfolio is a basket of assets that can hold stocks, bonds, cash, and more.
This term refers to the process whereby individual investors buy more stocks than they can afford.
By sector trading, sectors trading, you can get exposure to a basket of related stocks from the same index and industry with a single trade.
This is a unique series of letters assigned to security for trading purposes.