Stock Market Terminology
Wall Street Sisters Classroom Session #1
Table of contents
01
02
Fundamental Terms
Market Terms
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The Fundamentals
01
101
Stocks
An asset that represents an ownership stake of a company (100 shares = 0.000001%)
Asset Classes
The types of assets you can invest in: stocks, bonds, cash, real estate, crypto
includes
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“Hey, I own Tesla.”
Elon Musk, CEO of Tesla
Sorry, what?
We can own Tesla.
…well 0.00000000000001% of it :)
The Stock Market
The place where businesses issue shares of stock
and where investors trade shares of stock.
Stock
Exchanges
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Decoding
the Stock Summary Section
Ticker
abbreviation
Price/% Change
Chart Time Frames
Price @ Start of Day
Highest Price of the Day
Lowest Price of the Day
Highest / Lowest Price in Past Yr
Market Cap
The current value of all the company’s outstanding shares
Price per share x # of shares outstanding
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👍
For Financial Data / News on Companies
Spot the Difference
Stocks
ETFs
Indexes
Buying shares that represent ownership in a company.
Buying a basket of different stocks; trades like a stock
Benchmarks that track the performance of a group of stocks
Spot the Difference
Buying 100 shares of TGT = ownership
Buy QQQ = ownership of top 100 largest US tech companies
SPX: tracks the 500 largest publicly traded U.S. companies
DIVERSIFICATION
Spreading investments across 100 stocks to reduce risk (don’t put all your eggs in one basket)
Stocks
ETFs
Indexes
Quick, someone tell me the ticker symbol of an ETF for financial stocks and its top 3 holdings
… might need to make multiple Google searches
What’s a Sector?
P&G
Tesla
Chevron
JP Morgan
J&J
Caterpillar
Apple
DuPont
Simon Property Group
Duke Energy
Market Terms
02
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“Bull” market
“Bear” market
rise from lows
+20%
fall from highs
-20%
Lower lows, lower highs
Higher lows, Higher highs
Correction/Pullback: a drop of ~10% from recent market highs
Higher highs,
Higher lows
Correction/Pullback: a drop of ~10% from recent market highs
Higher highs,
Higher lows
90% BULL MARKET, 10% BEAR MARKET
The US Economy Is EXPANDING
Businesses are producing more and more, consumers are spending more and more
YOU GO AMERICA
Consolidate/Stagnate: to chop sideways
Lower highs, Lower lows
Same highs, same lows
Sector Rotation
Shifting money between different sectors to take advantage of changing economic conditions
Move into outperforming sectors and out of underperforming sectors
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Which Would You Invest In?
MAGS (Magnificent Seven ETF)
XLE (Energy ETF)
AI has been the HOTTEST topic
🔥
The Magnificent Seven?
Mega-cap names that have been dominant drivers of the stock market’s gains
What on Earth Does That Mean?
“The last correction that did graduate into a bear market was in 2022.”
- A random quote from the Associated Press
“Nvidia, after a few days of shallow downside chop, had a sturdy bid and accounts for most of the S&P 500′s slim quarter-percent gain. Energy, last week’s comeback player, was off 2% on a … slide in crude prices:.
- 9/29/25: A random quote from CNBC … Pro subscription actually (how special)