If you’re
just starting to invest your money in 2014, you’re probably in for the besttime of your life. However, you’ll need to know some basic knowledge regarding
stock investing. It might seem that you are just buying and selling stock, but
you also need to understand some basic terms used in the market.
1.
The
Farm Terms
Animals are a
very common term in the stock market. Bull markets appear when the country is
doing well with the economy and it sets the ideal conditions for GDP growth,
which makes it easier and less risky to pick stocks. A bear market is the
complete opposite of the bull market because the economy is not doing well,
there is high unemployment and a great recession.
2.
The
Common Markets
The Capital
Market comprises of long-term bonds, shares and stocks. This is essential for
young investors simply because the volatility of the market will have minimal
effect on the final value of their investments in the future. For short term
investors, there is the Money Market, which deals in annual-yield bonds,
treasury bills and certificates of deposits. The Money Market does well if the country’s
economy does well.
3.
Beneficial
Owner
A beneficial owner
is someone who is the real owner of a stock or bond. Stocks or bonds may have three
names including the name of the broker, bank and the investor. The investor is
the beneficial owner
