(Glossary)
What's going on here? The glossary is usually at the rear of most books!
Well guess what. I've decided to be different. Before we get into actually
picking penny stocks and discussing trading strategies, it just seems logical that you should understand what all the major terms mean.
Read the definition for every term listed "now", not later! I've listed the
basic terms that are common to everyday trading activity.
Refer To This Section As Often As Needed
Account A brokerage firm's record of your transactions.
Asked Price The lowest price you can expect to purchase a security.
Annual Report This is the yearly financial statement that shows the
corporation's financial condition.
At The Market An order placed by an individual instructing a broker to
buy or sell a security at the current trading price.
Bid Price The highest price at which a individual can expect to sell a
security.
Bear A individual who believes the market will decline.
Bull A individual who believes the market will rise.
Block Trade A trade of 10,000 or more shares of stock.
Book Value The total assets of a company minus liabilities and shares
of preferred stock.
Broker Someone who acts as an agent in the buying and selling of
securities.
Bond A promissory note of a corporation.
