Stock Market Glossary (A – B)

Stock Market Glossary
Use this quick reference guide to the most common stock market terms. Traders have their own language and our glossary will have you speaking the lingo in no time!

Individuals who are new to trading tend to feel a bit overwhelmed with all the new stock market terms. Our goal is to provide you with the information necessary to learn about and study the stock market by making it as easy as possible. We try to take stock market definitions and put them into words that make it as easier for new and even non-investors to understand. We also do this in our Japanese Candlesticks section and the Technical Analysis section of this site. In these sections you can learn about the most profitable technical indicators available and also about the different types of Japanese Candlestick patterns utilized by individual traders.

We hope that you find this information useful in your stock market education.

Stay tuned to our Blog for more stock market terms!

Stock Market Glossary from A to B

Ask (or Offer)
The price Market Makers are willing to sell. The current price traders are able to purchase a security.

All-or-None Order
A method to place an order, that must be filled completely or your trade will not take place.

Assets
Everything a company owns, such as money, securities, equipment and real estate. Assets include everything that is owed to the company and can be found on a company’s balance sheet.

At the Money
Used in options, where the strike price is the same as the current stock price.

Averaging Down
Buying more of a security at a lower price than one paid for the initial asset. The intention of averaging down is to reduce the overall average cost per unit.

Bar Chart
The usual graphic portrayal of price activity using vertical lines to illustrate high to low prices during a time period. The opening price is represented by a short horizontal line attached to the left side of a vertical line. The closing price is represented with a horizontal line to the right. Price is denoted on the vertical scale of the chart. Time is denoted on the horizontal scale.

Breakout
Price  movement that pushes through previous resistance or support levels.

Bearish
Outlook someone has where they believe the stock market or individual security will continue to go down in price.

Bid Price
Price option buyer is willing to buy.

Bullish
Outlook someone has where they believe the stock market or individual security will continue to go up in price.

Block Trades
Trades greater than or equal to 10,000 shares in size and greater than or equal to $100,000 in value.

Blue Chip Stocks
Stocks of established companies that are well known with a history of dividend payments and/or other strong investment characteristics.

Bonds
Promissory notes issued by a corporation or government to its lenders, usually with a set amount of interest for a specific period of time.

Broker or Brokerage Firm
A securities firm which serves as the link between investors and the stock market. Brokers act as agents for traders and charge varying commissions for their services. A Full Service Broker deals directly with traders and executes your orders. You pay higher commissions for their service, but they can come in handy if you are new to trading. A discount broker works at a firm that offers low commission rates.

Buy To Close
Buy back an option contract to close out a position that you previously shorted.

Bear Market
Strong downtrending market in which stock prices are falling.

Bull Market
Strong uptrending market in which stock prices are rising.

Bid/Ask Spread
The difference in price between the bid and ask price in an option contract.

Buy to Open
Option trading order to go long (buy) a position in an option contract.

Many of the terms used in the stock market glossary are used in greater detail in our Japanese Candlesticks Category, our Technical Analysis Category, and illustrations in our Daily Market View.

  Stock Market Terminology (C-E)
Stock Market Trading Terms (F-L)
Stock Market Definitions (M-R)
Glossary of Stock Market Trading Terms (S-Z)
Stock Market Glossary (A-B)