Common Stock Market Terms

Bull Market: Refers to a stock market in an upward trend, where investors are optimistic, and prices typically show stability or an upward trend.

Bear Market: Refers to a stock market in a downward trend, where investors are generally pessimistic, and prices typically show a downward trend.

Opening Price: The first transaction price of a stock at the beginning of a trading day.

Closing Price: The last transaction price of a stock at the end of a trading day.

Highest Price: The highest price reached by a stock during a trading day.

Lowest Price: The lowest price reached by a stock during a trading day.

Blue Chip Stocks: Stocks of large, well-known companies with a high-quality and stable profit record.

Hot Stocks: Stocks that have recently attracted market attention, with active trading and significant price fluctuations.

Growth Stocks: Stocks of companies with high growth potential, usually characterized by revenue and profit growth rates higher than the market average.

Lot: A unit of quantity in stock trading, typically equivalent to 100 shares.

Trading Volume: The total number of stock transactions completed within a specific period.

Price Level: The price level of a stock, usually associated with a price range or price band.

Trading Halt: The suspension of stock trading, often due to significant corporate announcements or major asset restructuring.

Ups and Downs: Refers to the rise or fall in stock prices.

Limit Up (Down): Refers to the situation where the stock price increase (decrease) reaches the upper (lower) limit set by the exchange, causing trading to halt.

Bid: Buy orders with prices higher than the previous transaction price.

Ask: Sell orders with prices lower than the previous transaction price.

Price Level: The price level of a stock displayed on the buy and sell order books.

Consolidation: Refers to the fluctuation of stock prices within a certain range without a clear upward or downward trend.

Gap Up (Down): Refers to the situation where the stock price opens directly higher (lower) than the previous closing price, with no trading in between.

Price-to-Earnings Ratio (P/E Ratio): The ratio of a stock's price to its earnings per share, used to measure the stock's valuation level.

Pullback: Refers to the process of a stock price pulling back from a high point to a low point.

Rebound: Refers to a temporary rise in stock prices after a decline.

Bullish: Refers to investors or traders who anticipate an increase in stock prices.

Bearish: Refers to investors or traders who anticipate a decrease in stock prices.

Bull Market: Refers to a stock market in an upward trend.

Bear Market: Refers to a stock market in a downtrend.

Long to Short: Refers to investors who switch from holding long positions (anticipating price increases) to holding short positions (anticipating price decreases).

Short to Long: Refers to investors who switch from holding short positions (anticipating price decreases) to holding long positions (anticipating price increases).

Short Selling: Refers to investors anticipating a decline in the price of a particular stock or other financial product. They borrow the stock and immediately sell it, hoping to buy it back at a lower price later to return, thereby profiting from the price difference.

Covering Shorts: Refers to buying back borrowed stocks or derivatives at a lower price after selling them short, thereby profiting from the price decrease.

Bearish: Refers to negative factors or news in the market that may cause stock prices to fall.

Bullish: Refers to positive factors or news in the market that may cause stock prices to rise.

Being Trapped: Refers to the situation where an investor's held stocks are priced lower than their purchase cost, making it difficult to profit or requiring a long wait to obtain profits.

Major Player: Refers to investors or institutions holding a large number of stocks, usually with significant financial strength and market influence.

Medium Player: Refers to investors holding a moderate number of stocks, relatively smaller in scale compared to major players.

Retail Investor: Refers to individual investors holding a small number of stocks, typically with smaller capital and weaker market influence.

Broker: Refers to intermediaries or individuals representing clients in buying and selling transactions on the stock market, responsible for executing trading instructions and providing related services.

Scalping: Refers to investors taking advantage of short-term market fluctuations for rapid trading to gain short-term profits.

Consolidation: Refers to the fluctuation of stock prices within a certain range without a clear upward or downward trend.

Price Manipulation: It's an act of artificially influencing the stock price through large-scale trades. It's important to note that such behavior is considered illegal in most jurisdictions and is classified as market manipulation.

Bear Raid: It's a coordinated effort by investors to push the stock price down through aggressive selling.

Dark Horse: Refers to potential or undervalued stocks in the market, often with high growth potential but currently underestimated by the market.

Blue Chip: Refers to large-cap stocks with high market value and stable profitability.

Manipulation: Refers to investors manipulating market price trends to mislead other investors into making incorrect trading decisions.

Technical Analysis: Refers to a method of predicting future stock trends by studying technical indicators such as stock prices and trading volumes.

Fundamental Analysis: A method of evaluating the value of stocks by studying fundamental factors such as company financial condition, industry prospects, and management.

Unlisted Stock: Stocks that have not yet been listed for trading on a securities exchange, typically shares of companies in the developmental stage.

Order Form: A document submitted by investors to a securities exchange to instruct the buying or selling of stocks.

Turnover Rate: The frequency of trading of a stock within a certain period, typically calculated by dividing the trading volume by the outstanding shares.

Warrant: A financial derivative that gives the holder the right, but not the obligation, to buy or sell stocks at a specific price within a certain period.

Ex-rights: When a company adjusts the equity of its stocks through actions such as dividends or rights issues, typically resulting in a corresponding adjustment in stock prices.

Dividend Distribution: The act of a company distributing profits to shareholders, usually paid in cash.

In-the-Money: Refers to a financial instrument (such as options or warrants) having intrinsic value.

Recovery: Refers to the process where the stock price returns to its previous level or close to it after a stock has been adjusted due to corporate actions or market factors. This term is less commonly used in the market and is more of a descriptive expression, not involving specific trading rules or standard operations.

Capital Increase: The process by which a company increases its capital through issuing new shares or increasing its capital.

Rights Offering: The act of a company offering new shares to existing shareholders.

Bullish Intervention: The act of buying stocks with a large amount of capital to drive up stock prices.

Bearish Intervention: The act of selling stocks with a large amount of capital to drive down stock prices.

Sell-Off: The act of investors selling off stocks when stock prices rise.

Resistance Line: A price level where stock prices encounter significant selling pressure when rising, making it difficult to break through.

Support Line: A price level where stock prices encounter significant buying support when falling, making it difficult to break through.

Gap Up/Down: When stock prices directly jump up or down from the previous closing price without any trading in between.

Gap Fill: Refers to the situation where the stock price rises back to the level before a gap down opening.

Pullback: The process of stock prices retracing from a high point to a lower point.

All-Time High: Refers to stock prices reaching relatively high levels, typically historical peaks.

Breakout: When stock prices break through previous price ranges or technical indicators, showing a clear upward or downward trend.

Bottoming Out: When stock prices approach historical lows or support lines after a decline, possibly indicating an upcoming rebound.

Peak: Refers to the point where the stock price reaches a critical level after rising, potentially indicating a downward trend thereafter.

Place Buy Order: Refers to investors submitting buy orders to the securities exchange and waiting for execution.

Place Sell Order: Refers to investors submitting sell orders to the securities exchange and waiting for execution.

Recent Trends: Refers to the direction and changes in the stock price over a relatively short period.

Full Delivery: Refers to the situation in securities trading where the buyer receives all the securities purchased and the seller receives the corresponding payment.

Wash Trading: Refers to changing the market price trend through a large number of trades, thereby stimulating investors' trading sentiment.

Matching Transfer: Refers to two investors coordinating to transfer ownership of securities to each other through trading.