When the stock market gyrates, especially those downturns in prices, millions of investors start watching the “ticker tape” – sometimes hour by hour. It is easy to get lost in the stock market lingo – here’s a quick glossary of terms.
LET’S START WITH TERMS LIKE “CORRECTION” AND “BEAR MARKET” – WHAT DO THEY MEAN?
- Pullback: when a stock or stock market declines 5-10%.
- Correction: a market drop of 10% or more.
- Bear Market: when a stock or market falls 20% or more.
WHAT IS A “CIRCUIT BREAKER?”
- A halt in trading: A measure put in place to halt trading when there are massive declines during normal trading hours.
- Avoid panic selling.
LET’S END ON A POSITIVE NOTE, WHAT ARE TERMS FOR A RISING MARKET?
- Rally: a sharp increase in stock prices.
- Bull Market: when stock prices are rising. (Now: 2nd longest in history)
