I can't just sit back and wait. The money I can earn is limited, and bank interest rates have hit rock bottom for a long time, so the value of my money will almost certainly decrease if I keep it in my bank account. There is no guarantee that 100,000 won now will be 100,000 won in 10 years. It's not that I don't have enough money to invest in real estate. The only thing you can do with a small amount of investment is stocks. If you are just entering the stock market (stocks + children), we have compiled stock terms you must know.
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Stock Basic Terms 12
KOSPI and KOSDAQ
The stocks that ordinary people trade when they say 'stocks' are stocks in the KOSPI and KOSDAQ markets. KOSPI (Korea Composite Stock Price Index) refers to the stock market itself listed on the stock exchange, and also refers to an index that displays stock prices. . KOSDAQ (Korea Securities Dealers Automated Quotation) refers to a market where stocks of small and medium-sized venture companies smaller than the KOSPI, such as IT, bio, and entertainment, are mainly traded.
Market capitalization (market cap)
The market capitalization is calculated by multiplying the number of listed shares of each listed company by the stock price at that time.
(Market cap = total number of shares X share price)
trading volume
It refers to the number of shares sold and sold in the stock market. If the trading volume is 1,000 shares, it means that 1,000 shares are sold and 1,000 shares are purchased. There is a famous saying that “volume precedes stock price”. The story is that changes in trading volume affect stock prices soon. It seems like an obvious truth, but it's easy to get lost in the movements of other indicators and overlook the signals given by the indicator called trading volume.
transaction amount
It is the amount multiplied by the price of a traded stock by its trading volume.
cigar and closing price
The stock market opens at 9 am and closes at 3:30 pm. The open price refers to the first traded price at 9:00 when the trading begins, and the closing price refers to the last traded price at 3:30 when the market closes.
asking price
It refers to offering a price for stock trading. You place an order at the desired price, that is, the price you want to sell or buy.
same quote
In general orders, trades are executed in the order in which they are placed. But what if orders come rushing in at the same time? Simultaneous quotations are defined as quotations received simultaneously in the stock market or quotations whose timing is not clear. It is called simultaneous quotation only if it is received at exactly the same time, but it is not common because securities trading is done in units of 1/1,000 of a second. So, in general, single-price trading right before the market opens and right before the close is called simultaneous-ask trading. For example, you can place a stock order 30 minutes before the market opens. It is to collect stock trading orders from 8:30 to 9:00 and execute the trade at the appropriate price (simultaneous quote or single price). The same applies to orders placed 10 minutes before market close. The reason for using this method is that the stock price can be distorted by a sudden burst of orders.
upper limit and lower limit
In the stock market, upper and lower limits are limited to prevent confusion in the market order caused by rapid price fluctuations of securities. It is called the price limit, and it was designated from 2.2 to 6.7% as a flat rate of 17 levels for each standard price range, but it gradually changed and was changed to 30% on June 15, 2015. So, the upper limit, which we often say, is the price at which the share price rises by 30% during the day, and the lower limit, on the contrary, refers to the price at which the stock declines by 30%.
No Charge
It refers to a state in which stock prices do not rise or fall, and do not fluctuate. In particular, when the price rises but does not fall and remains steady, it is called strong bearish, and when the price falls and remains steady without rising, it is called weak bearish.
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Stock Trading Glossary 12
Jesus
An investment amount deposited into a securities account for stock trading.
buying and selling
Buying is the act of buying stocks, and selling is the act of selling stocks.
conclusion
This means that a sale or purchase transaction has been established.
Margin
At the time of a purchase order to buy stocks, a certain percentage (margin rate) of the contract price (amount multiplied by the contracted quantity by the price) is withdrawn first, which is called margin. You can call it a kind of transaction deposit. When you open a securities account, you can set a margin, but usually the margin rate is 40%. The story that the margin rate is 40% means that if you have 400,000 won to buy stocks worth 1 million won, the transaction will be completed. The remaining 600,000 won can be deposited in two days. If you are just starting out in stocks, it is a good idea to set your margin rate to 100%.
Accounts receivable
It refers to the amount incurred due to failure to pay the remaining amount after paying the margin. In other words, in the case of a margin rate of 40%, if you pay 400,000 won in margin out of 1 million won in transaction amount, and the remaining 600,000 won is not paid, it is treated as receivable.
counter trade
If there is a receivable, the securities company will suffer a loss. At this time, the securities company sells the stock at the lower limit the next day without the customer's consent to make up for the loss. This is called reverse trading. Reverse trading is carried out not only to repay receivables, but also to repay unpaid loans (ex. after making a loan from a securities company and investing, this money is not repaid within the agreed period).
margin call
If the loss is not covered after the counter trade, the customer's account will be seized from the margin portion. If that's still not enough, the customer will be urged to pay, which is a margin call.
common stock and preferred stock
If you search for the stocks of a company you are interested in, you can see two stocks: stocks with the company name and stocks with a 'woo' attached to the end of the company name. The difference between the two stocks is as follows.
limit price and market price
A limit order refers to placing an order by specifying the desired price when placing a trade order. If the stock doesn't come out at the price you want, the deal won't go through. Market price refers to an order that is executed at the most advantageous price at the time the order is placed.
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Stock Ayu 8
Bullet
When you buy stocks, you mean money.
Bread
All-in is the act of investing all in one stock. (antonym: diversification)
Sangtta
It means catching up to the upper limit, which means buying stocks that are just before going to the upper limit or those that have taken the upper limit, judging that there is additional upside potential. (antonym: hata)
Dasang
This means that a newly listed stock has an opening price of twice the public offering price on the first trading day, and then rises to the price limit and closes.
Jjeomsang
It refers to the case where the opening/high/low/closing price are all the upper limit due to strong buying. It is marked with a dot on the daily chart, and it is expressed as a jeomsang like this. (antonym: jjeomha)
Rice Cakes
It is a term used to mean that stock prices have soared tremendously. Even when the stock price has plummeted but recovered a lot, even though the index is negative, the term rice cake is used. The standard has not been precisely set, but it is common to use the word rice cake for an increase of about 3% or more. (Anonyms: Tteokrak, Tteokfall, Tteokpokrak)
Overnight
Commonly called 'over', it is divided into call over, put over, and attempted over. A callover is the act of buying a derivative call and holding it overnight, and a putover is the act of buying a put and holding it overnight. You have to be careful because of the potential for premiums to be cut and you can lose a lot when the gap starts to move early in the market. Overnight investment should be noted.
Colleval
It is a compound word with the trembling excitement of the call-over players wishing for their index to rise. However, there is a legend that the more you tremble, the more you tremble.
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Stocks, as an investment, not speculation
There are many prejudices about stocks as an investment vehicle. Rather than a negative perception that stock investment should not be done, what if we considered it as a factor to learn from and pay attention to the economy and finance? In addition, instead of speculation to seek high profits by buying and selling stocks in the short term, we hope to find companies with growth potential and build a portfolio to make more stable stock investments.