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Understanding Basic Stock Market Jargon

The stock market is an invariably tricky thing to traverse but having basic knowledge of jargon like initial public offering, IPO, stock market launch, and a few more can help to make it easier. The first thing that you want to do when trying to understand the stock market on a basic level is to understand what an initial public offering is. This pertains only to companies that have not previously been traded on the stock market in the public sphere. Take Facebook for instance, until early 2012 it was a private stock option only company, then the founder decided to open up the trading options to the public.

The initial public offering or IPO is the number of stocks that are initially open to the public to purchase. Generally this is a somewhat low number in the scope of total stocks that are available and is used to feel out the public response and market. A stock market launch is similar, this is the first time that any company can be traded in public. The stock market launch of any company is generally paired with a jovial atmosphere and a ceremonial opening on the stock market to commemorate the opening of that stock on the public market. An opening can also pertain to those companies that are being traded privately but there is often less fanfare.

Another word that it is important that you know is investing and investment. Investing is the process by which you or a company purchases stock options and therefore part of the company, in any chosen business. By owning these shares you are essentially owner of part of the company that you have purchased stock in. This means that when the company does well, your stock options are worth more money and when it falls, your stocks go down. If you are new to the investing world you may want to look into investment banking and hiring an investment banker to help you hammer out the details of your investments. Public sharing of stocks is how most companies make their millions and how they grow their following. If you want to know more about any of these terms you may want to consult a professional.

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