Stock Glossary

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 opening, the closing price of the previous day shall be the opening price.

Closing Price:

It refers to the price of the last stock traded on that day.

Highest Price:

It is the highest of the prices traded on that day. Sometimes, there are one or more highest prices.

Lowest Price:

It is the lowest of the prices traded on that day. Sometimes there are one or more lowest prices.

Growth stocks:

It refers to the stocks issued by companies with growing sales and profits faster than those of 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.


The number of shares traded reflects the volume of transactions. This is generally measured by the number of shares traded and the amount traded. 


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


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 "+” and "-" symbols on the bulletin board above the trading desk.

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.


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. 


It refers to the strong bullish or bad news stimulus, for which stocks 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 earnings of last year or the forecast earnings of 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 range between 20-30. A very small ratio indicates that the stock price is low with low risks, and it is worth buying. An inflated P/E ratio indicates that the stock price is high with high risks, so you should be cautious with your purchase decision. But stocks with high P/E ratios are mostly well sought-after, while stocks with low P/E ratios may be unpopular stocks.


It refers to the phenomenon that in a falling price quotation. The shares 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 it.


Investors who are optimistic about the future and then buy the stock, waiting for its rising to a certain price, and selling it for the difference.

Short sellers:

Investors who believe that the stock has risen to its peak and will soon fall, or when the stock has already started to fall, they think it will continue to fall and sell it at the high price.

Long Market:

It’s also known as a bull market, a market in which stock prices generally rise.

Short Markets:

A market in which stock prices are on a long-term downward trend, and in a short market, stock prices move in small and large declines. It’s also known as a bear market. 

Long Flip:

It’s a long position that was originally bullish on the price. But investors changed their mind and sold their shares, sometimes with borrowed shares, in an action known as a short flip or long flip.

Short Selling:

Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. It is an advanced strategy that should only be undertaken by experienced traders and investors.

Retail Investors:

It refers to individual investors who trade a very small number of shares.


A person who executes investors’ order to buy or sell securities, commodities, or any other properties with commission.

Short Snapping:

Investors buy at a low price in anticipation of rising share price and then sell at a high price shortly. Alternatively, investors sell at a high price, and then wait for an opportunity to repurchase at a low price in the short term with an expectation of falling prices.


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.

Technical Analysis:

An analytical study of markets and stocks based on the 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. It 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 on any stock exchange.


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

Resistance Line:

When the price of a stock rises near to a certain level, the stock stops rising or even revert in case of a large amount of selling.

Support Line:

The price at which a stock drops to a certain level, and if there is a lot of buying, it will stop falling or even rise.

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