15 Stock trading terms you must know - Part 2


8. Buy: To "buy” means to take a position, or to buy shares in a company.

9. Sell: Conversely, to "sell" means getting rid of the shares purchased.

10. Portfolio: Basket of shares usually held by a person or a fund.

11. Bid: A bid is what Dinesh is willing to pay for a stock.

12. Ask: An "ask", on the other hand, is what people selling stocks are looking to get for their shares.

13. Limit order: When placing a limit order to buy, Dinesh can set the exact price he is willing to pay for the stock.

14. Market order: It is an order that an investor makes through a broker or brokerage service, to buy or sell an investment immediately at the best available current price. It is also referred to as an "unrestricted order."

15. Day trading: Speculation in securities, specifically buying and selling financial instruments within the same trading day.