The Code Deciphered

A critical advantage to understanding any foreign culture is to embrace the language.

What we set out to teach at King Blvd and Wall St is admittedly foreign to our culture, but our beloved Shawn Carter once so eloquently stated:

Put me anywhere on God’s green Earth, I’ll triple my worth…

U Don’t Know – Jay-Z

The following is a living collection of common stock market terms and definitions compiled to help you navigate. We will continue to update and revise as the King Blvd and Wall St community and curriculum grow.

Stock: a type of investment representing an ownership share in a publicly traded company

Mutual Fund: a professionally managed investment portfolio program funded by shareholders; not typically traded on the “market”

ETF: similar to mutual funds, but typically use a collection of stocks to track an index and/or sector of the market; ETFs are traded on the market like stocks

Index: a hypothetical portfolio of stocks representing a segment of the market; popular indexes are S&P 500, Nasdaq 100, and Dow Jones

Index Fund: an etf comprised of stocks mirroring a particular index; popular index funds are SPY, DIA, and QQQ

Investing: allocating resources, typically money, with the expectation of generating a profit

Trading: a trade is the buying and/or selling of a share(s) of stock

Dividend: distribution of a company’s earnings to shareholders at a set percentage and time interval; typically quarterly

Chart: a graphical representation of stock price over time

Indicator: a technical tool used to interpret and predict movements in stock price

Support: price level that stock does not readily go below

Resistance: price level that stock does not readily go above

Trend: the general direction of stock price over a defined time interval

Bull Market: subjective condition in which market is trending higher

Bear Market: subjective condition in which market is trending lower over a defined time interval

Pullback: a move in stock price that is counter to the current trend

Correction: a significant pullback; typically characterized by at least a 38.2% retracement of a trend move

Ask: order to sell share(s) of stock

Bid: order to buy share(s) of stock

Long: to purchase a share(s) of a certain stock

Short: to “borrow” shares from a broker to sell on the market, repurchase at a lower price before returning shares to the broker

Swing Trading: a trade that is held anywhere from overnight to a year, though typically 3 days to 2 weeks

Intra-Day (Day) Trading: buying and selling of a specific stock within the same trading day 4am – 8pm

Scalping: a trade that typically begins in the middle of a larger move in price direction

Volume: the number of transactions (buys and sells) of a stock over a defined time interval

Range Bound: a scenario in which the stock price is oscillating between clearly defined support and resistance levels

Breakout: a break of the price above the resistance level for a stock that was previously range bound

Spread: the difference between the bid and ask prices for a stock

Float: the number of shares available for trading

Market Cap: calculated by multiplying current stock price by total number of outstanding shares

Volatility: fluctuations in stock price within a given time period

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