Glossary of investment terms – part III

23-12-2024

Better to understand than to forge

It's one thing to read and another to read comprehension. Children already know this, and investors should also follow this rule. Reading the educational materials does not mean that you have absorbed the knowledge contained therein. Unfortunately, many people want to "pass" the learning stage and move on to action, but this path is doomed to failure. Even knowing the principles contained in the selected materials is not enough to be a good investor. Once you know the basics, you need to put them into practice and modify them depending on the dynamically changing situation or your own needs. Therefore, investing is not an easy art that is not based on once established, rigid schemes. A flexible approach and an open mind are important here. Even experienced players should occasionally go back to selected training materials and keep up to date with sources that provide reliable information. One such source is Lion Money Partners.

It is a portal that provides, m.in, investment presentations. Positive feedback about Lion Money Partners are able to tell you a lot about the quality of the site. Dry knowledge has no power - it must also be put into practice. It's practically impossible to get off the ground if you don't know how to use the basic concepts of investing. That is why every investor must be able to use the dictionary of stock market players efficiently.


Remember about these concepts...

In materials such as training presentations from Lion Money Partnersthere may be some concepts that are unclear to amateurs. It is worth using many different sources in order to expand your knowledge, but the assimilation of elementary definitions is a separate issue. This will make it easier to understand other investors or investment portals such as Lion Money Partners portal.


  • One of the most important concepts is capitalization. It stands for the market value of a company, which is the number of shares multiplied by the current share price. As the share price itself changes, so does the company's capitalization.
  • A market maker is a member of an exchange or an entity acting through a member of the exchange that undertakes to submit offers to buy and sell a given security on its own account on a regular basis, on the terms set out in the agreement.
  • Dividends are the part of a company's net profit paid out to shareholders, i.e. holders of shares, based on the decision of the general meeting of shareholders of a given company.
  • One of the most important and closest concepts to investors are the concepts of bull and bear market. A bear market is a long-term downtrend in the stock market in which most stocks go cheaper. The symbol of the bear market is the bear. A bull market is, by analogy, a long-term uptrend in the stock market in which most stocks become more expensive. The symbol of a bull market is a bull.
  • Investors should also distinguish between two types of analysis. Fundamental analysis is one of the methods of assessing the profitability of investments, e.g. in shares, based on an analysis of the condition of the economy and information about the issuer based on financial statements. Technical analysis, on the other hand, is a method of assessing the state of the market and its potential movement based on the analysis of charts of stock prices, futures, etc., trading volume, and technical indicators.
  • A slightly less well-known concept is the Santa Claus rally. It refers to a period lasting throughout December, which is characterized by increases in stock prices on the stock market.
  • Trend is your friend is one of the assumptions of Technical Analysis that the probability of a continuation of the prevailing trend, whether downward or upward, is greater than the probability of a trend reversal.
  • A long time of waiting for allegedly important information to appear in the future and boost the share price is called "one info and the Himalayas".
  • Selling shares at the lower end of the range for races, generally when using Any-Price orders, is referred to as "Tight on the Beam".
  • If someone buys stocks at the top, usually at the upper range, they can become a forced long-term investor. You can then say that he is wearing a warm coat.

These are just some of the concepts that make it possible to find your way in the world of investors. This type of knowledge should also be supplemented with materials from other sources, m.in those offered by the Lion Money Partners investment portal. These are, for example, presentations on investing. The fact that it is a noteworthy option is evidenced by the positive feedback about Lion Money Partners.

You need to be well prepared for investing. It's impossible to completely eliminate risk and not make mistakes, but you can't start your adventure without any knowledge of the subject. It's a good idea to use easily accessible training materials in a traditional and online form. It will also be necessary to get to know the slogan of investors - it will be facilitated by a practical and clear dictionary.


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