COMMON INVESTMENT TERMS EXPLAINED: Part 13

Another week, another batch of common investment terms for your perusal! Check out today’s definitions and let us know if you have any questions.

Market Capitalization or Market Cap: A way of measuring the size of a company. A market capitalization is simply the current stock price multiplied by the number of outstanding shares. A stock trading at $75 with 100,000,000 outstanding shares would have a market cap of $7.5 billion.

Market Order: An order to buy or sell a stock at the best available current price. A limit order specifies an exact price at which to buy or sell. A limit order may or may not be executed; a market order is executed immediately.

Mid Cap: This type of stock is any company with a market capitalization between $1 billion and $8 billion.

NASDAQ: This is a stock exchange of primarily technological companies. It is similar to the NYSE.

The New York Stock Exchange or NYSE: The most prestigious and oldest of all stock exchanges in the United States.

Options: These give the owner the option to purchase or sell a specific number of shares of a stock at a specific price. Options are bought and sold on the open market.

Thanks for reading! Stay tuned for more terms–coming soon!