Business English Vocabulary: The Stock Market


Hi again. I’m Adam. Welcome back to www.engvid.com.
Today we’re going to look at some business English, with an introduction to investing.
Now, what is investing? Investing is putting your money someplace with the hope that more
money will come back to you later. Okay? So it’s making money over time. Many ways to
do it, but today we’re going to look more specifically at the stock market. Now, before
we begin to look at the stock market, we need to know all the different words that you
will find in the stock market discussion. Of course, we have to look at “stocks”. So:
“stocks” and “shares”. Now, many people get confused: what is a stock? What is a share?
Realistically, these are basically the same thing, but subtle differences between the
two. So, when a company decides that it wants to make money, so it can expand its business,
it wants to raise capital. “Capital”, it’s a big word, there’s lots of meanings to it.
We’re going to look at that a different time. But for our case, “capital” means money. They
want to make money, they want to raise capital so they can grow their business. So what they
do is they sell stock. Stock is a partial ownership of the company. So when you buy
stock, you get a piece of paper, you get a certificate that says that you own part of
this company. And because you own part of the company, you have certain rights. You
can make… You can vote for changes, you can vote for things that
the company should do. Now, what is a share? A share is an equal piece
of the stock. So, for example, a company sells $100 worth of stock. That’s the full
amount of the ownership that the company makes available to the public. Now, this stock, this
total amount, they divide into 100 shares. Okay? So you buy as many shares as you want of
this stock. So because you have 100 shares, the full stock is $100. Each share is, of
course, $1. You buy 10 shares, that mean… That means you’re buying 10% of the available
stock. You’re buying $10 worth of shares. Now, you own stock, you own shares in the
company. In that case, it’s the same thing. Now, when you talk about stocks,
you can say: “I own stocks.” So let’s go to this word quickly: “portfolio”. Your
portfolio is the collection of your investments. You may have stocks, you may have mutual funds,
you may have bonds, you may have commodities, you may have real estate. You may have all
kinds of different investments. If part of your portfolio is stocks, you say: “I have some
stocks.” It means I can have five company’s stocks. But when you say: “I have shares”,
then you have shares of a company. Okay? I have stocks in 10 different companies. I have
shares… I have 10% or I have 100 shares in this company, I have 50 shares in that
company, I have 2,000 shares in that company. But all together, you have stock.
Okay? So it’s a total amount of
the companies that you own. Now, if you want to buy stocks or trade stocks,
if you want to buy and sell your shares, you can contact a “stockbroker”. Okay? A broker is
somebody who deals with trades; buys, sells stocks on the stock market. These days, you
can just go online and find a “brokerage” which is a website or a company that lets you
buy and sell your own stocks and shares. Okay. Next: we have “IPO”, this is “Initial Public
Offering”. Sorry I’m a little bit off line, here. When a company decides: “Okay, we need
to make more money. We need to raise capital. We need to sell some stock of our company.”
So the first time that they sell this stock, there’s a big event, you know, like it’s a
big promotion, they have to market it, they have to tell the public: “Look, we’re going to
sell stock. Get ready.” This is the initial public offering. The first time that they
sell stock. We actually don’t say: “Sell”. They don’t sell stock; they issue stock. And
then the stock brokerage or the stockbrokers, they buy and sell the stock. Next: “ROI”. This is a very important thing
to consider. “Return On Investment”. Before you buy anything, before you
invest your money in anything, you always have to
consider your ROI. How much money do you hope to get back? How
much money do you think you will get back? Because at the end of the day, a stock market
is a gamble. There’s high-risk and there’s low-risk companies. Your return on investment,
obviously, you’re hoping to make money. You hope to get a positive yield. A “yield” is basically the percentage gain
that you will make on your investment. So, how much did you get back? What was your yield?
Oh, 5%. It means if you sold… If you bought $100 worth, and then you sold it for $105,
your yield was 5%. Your return on investment was $5. Okay? So that’s how we talk about the
money that you make from your investment. Now, you can also buy “bonds”. Bonds are different
from stocks. A bond is a debt. You are buying a debt. Basically, what you are doing is you are
lending money to a company or the government. You can buy government bonds or corporate
bonds. And what you’re doing, you’re lending them money, and they guarantee you-the company
or the government-guarantee you a certain percentage of interest and a certain amount
of time. So if you buy a five-year bond at 7%, at the end of the five years, you get
your money back plus your 7% interest that you earned. So it’s guaranteed. It’s a bit
safer. We’re not going to talk about safe and unsafe, because there’s a lot of junk bonds,
there’s a lot of bad bonds. But generally speaking, bonds are very safe, but they’re
also… Have a low yield. Because they are guaranteed, the return is a bit lower. You
could make some investments with a very high yield, but very high risk. Okay? “Risk” means
the danger of losing, as opposed to gaining. Now, you can also buy “mutual funds”. A mutual
fund is a… Basically, it’s a company that manages your money. So you put money into
this mutual fund, the mutual fund manager will then take your money, plus this guy’s
money, and that guy’s money, and that woman’s money, and that lady’s money – he will take
all this money and he will buy what he thinks are good investments; stocks, bonds, commodities,
equities, all kinds of things into one group and everybody gets their share. Okay? So,
when the entire group of investments goes up, each member of the mutual fund gets his
or her return on investment, their yield. “Portfolio” we already
talked about. Now, when we’re talking about the actual stock
market, these days, there’s a lot of “volatility” in the stock market. Volatility is the sense
of excitement or nervousness that enters the equation. So people, they hear a bit of bad
news from this part of the world, they get nervous because they think that will affect
their stock, and they start selling all their stock. So their stock price or their shares
go down in value. So then other people, they say: “Oh my god, everybody’s selling this. I
better sell mine, too.” So they start selling. And then the smart people, they see: “Oh,
everybody’s selling. I’ll wait until it gets really low, and then I’ll start buying everything
for really cheap because I know it will go back up.” So volatility is more like the mood
of the investors. And people get scared, they sell. People are stay calm, they buy. Okay?
So it creates a lot of “fluctuation”. A lot of fluctuation in the market.
Fluctuation is the up and down movement. So stocks go up, they go down, they go up,
they go down. Something that is steady, goes up steadily or goes down steadily.
If it’s up and down, it fluctuates. Okay? This is a very good word
for all kinds of situations. Now, there are two types of market activity.
There is a “bear market” and there is a “bull market”. The easiest way to think about these
is to look at the animals themselves. A bear has claws, so when a bear uses his claws, he’s
pulling everything down. So a bear market is a market that is tending downwards, that
is losing value. A bull has horns, so when a bull uses its horns, it’s pushing things
up. So a bull market means the value of the market is going up. Usually it means there’s
a bit of a force, like something is making it go down, that’s the bear; something is
making it go up, that’s the bull. Something is pushing it up. Now, if you want to know how the markets are
doing, you could look at any specific “index” or “indices”. This is the plural of “index”.
Now, I know many of you have heard of the DOW Jones, or the NASDAQ, or the S&P 500, or
the TSX here in Toronto. These are indices. Okay? An index means that the stock market
took a group, a collection of companies… It’s not necessarily random; they have a reason
to choose these companies. But they look at all these companies, as a whole: are these
companies going up in value or are they going down in value? So if the index is trending up,
that means that the whole market is generally doing pretty well. If the index is going down,
that means the market is going down as well. This is… This gives you an idea of how the
market is trending. So in a bear market, the index will probably start moving down; in a bull
market, the index will start moving up. Okay. Now, if you’re a conservative investor, it
means you don’t like to take big risks. You want to put your money in, you want to be
sure money comes back. It doesn’t have to be big money, but it has to be more than what
you put in. So then you would buy “blue chip stocks”. A blue chicks… A blue chip stock
is owning stock in a company that is big, that is trusted, that has a long history of
doing well, of growing. For example, if you buy Microsoft or Apple, these are considered
blue chip stocks. Why? Because they’re big, they’re stable. Over the… If you look at
their history, they’re generally going up for a long time. You can be sure that they
will pay you a good return or that they will pay dividends. “Dividends” are when they have
the profits, they share the profits among all the stockholders. So, blue chip
companies generally pay good dividends. Lastly, we have “equity”. Equity is basically
what you owe… Own. Sorry. Not what you owe. What you own minus what you owe. Okay? So,
for example, if you own a house, every part of that house that you own is your equity.
If you have a mortgage, if you’re paying the bank every month to pay for your house, then
you take the full house, minus the mortgage, and whatever’s left over – that is yours.
You own it. That is your equity. So, when you own stocks, that’s part of your equity.
So it’s basically all your “net assets”. All your assets, everything you own, minus all
your liabilities, everything that you owe somebody; all your debt. Okay? So now that we know all these words, we can
start thinking about investing. And I say “thinking” because you want to be very, very,
very careful before you put your money somewhere. A stock market is not that much different
from a casino. Okay? You can gain a lot of money; you can lose a lot of money. Find out
what you need to know, do a lot of research about the company you want to invest in, do a
lot of research about the mutual fund manager. Is he or she good at what they do?
Do they have a history of success? Then invest your money. If you want to test your knowledge of these
words, go to www.engvid.com. There’s a quiz there that you can try out. Ask questions in
the comments section. And, of course, don’t forget to subscribe to my YouTube
channel, and come see us again. Bye.

100 thoughts on “Business English Vocabulary: The Stock Market

  1. went for an interview at a popular bank. Felt like the stupidest person in existence, wish I saw this before.

  2. Тrаdеrs сan’t jumр in аnd оut ооf binаrу oрtiоns’ оrdеrs bу imрpррulsе оr rulеd bу еmоtions–thеу shоuld build аnd dеsign а trаding ррplаn frоm thееее grоund up аnd rеsеаrсh еvеrу singlе assеt thеу think аааabоut invеsting with in оrdеr tо mаximizе рrоfits аnd minimizе lоssеs. Wаtсh hеrе => https://vk.com/id432304135?w=wall432304135_23

  3. Fast transaction processing: TCC wallet is the easiest and fastest way to buy and sell THECHAMPCOIN in WORLD. We guarantee the best rate for your TCC buy or sell.

  4. Hello sir, I am from India. You are a very good trainer, I appreciate your great effort.

  5. Hi Adam i like your vedios,even though i am not a good listener but i understand what you mean.thank you man

  6. Dividens reminded me of math concepts. I am very fluent but math terms. Like when you divide 100 into 5. There are words for each number but I don't know how to express. Could you please make a video about basic math terms?

  7. Thank you Adam for this a mazing lesson, may God bless you abundantly for giving us free knowledge.

  8. Best explanation of the stock market I have ever heard and seen. Wow. Thank you.

  9. Hi Adam! my beloved Teacher! You are great! I love your lesson so much.Thank you so much for helping us to understand it.

  10. WAY better organized and presented than most of what I've found online. Thanks so much, great job!

  11. You did a wonderful job explaining the common terminology used for the stock market!! Thank you so much!

  12. Great video lessons. Thank you. I'd like to know more about Capital Note, and how it vs shares in terms of manage/risk.

  13. It seems like a dream to me, having make 10 Thousand Dollar every week through Mr Frank Robert my Account Manager who is using his great strategy and Fabulous software to help me in trading Forex/Binary Option and stock market i now know that they are some sincere and truthful Brokers in the Forex market, indeed some persons are of GOD'S sent and Mr Frank is one of them, His strategy works wonderfully for winning.

  14. SS GLOBAL is a funding platform which covers a Global network of HNW (high net worth), UHNW (ultra high net worth) and serious investors. This includes funds, pension funds and any form of financial fund able to provide money to any developer, construction company or anyone looking for investment into HNW buildings and hotels.
    We are currently directly mandated for several top Prime London developments, hotels and projects that all are off-market and fully secured. We are looking to work with the construction company, developers, financial partners, investors and anyone who has clients in the UHNW business.
    For developers, we are able to get funding for your projects. For investors/financial partners we are looking for further funding partners to fund projects government and non-government. For hoteliers, we have a complete list of hotels for sale.
    To developers, we have apartments, houses, commercial buildings, office blocks, residential developments, extra care homes and hotels for development. In addition, we specialize in providing finance through our partnership with finance houses and have the ability to provide support for exit strategies on development projects enabling financed to be raised. www.ssglobalwealth.com

    PLEASE SUBSCRIBE BELOW
    https://www.youtube.com/channel/UClgsaLH8yrljzRfG4ahDodA
    Like our Facebook page
    https://www.facebook.com/ssglobalwealth/
    Connect on LinkedIn
    https://www.linkedin.com/in/simonsinc...
    Follow us on Twitter
    https://twitter.com/SSGLOBALWEALTH
    Follow us on Instagram
    https://www.instagram.com/ssglobalwea...

  15. I believe that a scam cannot survive for so long with the same performance. I have used several binary robots to make money. But I was disappointed. Most of them don't work well. Finally, I found this great one >>>( https://t.co/QjYJNWMZQ9 ). It worked for me. It is the first multi-broker system in the world that gives me a decent and consistent profit. No need to be an expert or previous trading experience to use it. I am so glad to use this app.

  16. Million of Trader Changed there Life by the world best Strategy, also I am getting my desire profit each day, check out before any investment >> https://t.co/8468e70YPG .

  17. NO RSI
    NO Support
    NO Registrant
    NO Tension Needed, Just go with and put your profit from Tonight-https://t.co/TEyqrWj20l .

  18. Are you Looking for an investment that will get you as much as $100k monthly? To become Financially Stable for the rest of your Life! It's a great choice to be made…Be among the Successful People investing in FOREX TRADING AND CRYPTOCURRENCY withdrew your profit easily using this >> https://t.co/p84BYGCqbZ consistent winning strategy.

  19. thank you these are important words commonly used so this video is helpful

  20. hi I am Bangladeshi you are so nice smart you are teaching very nicely I want to learn this business but I don't know English fluently please do you say to me? how will I buy stocks by online?

  21. Hello Sir,I want to give alot of Thanx bcoz Honestly,This video had help me alot for Enhance my knowledge in terms of stock market,in terms of vocabulary nd many more…Thanx A lot sir….Nd by the way You r best teacher for Teaching the economics 😊😊😊☺…

  22. Wow you helped me understand basic words and concept of economy

  23. Thank you very useful for me. I'm working for a securities company (stockbrokerage). And sometimes I have some foreigner investor and I'm a bit hard to explain to them.
    Can you explain me about policy, enforcement and compliance…
    Thank you so much dude

  24. Your video helped me a lot in grasping the meanings of these words in English because I was having some problems due to me being trilingual (Turkish, French and English). The languages have a tendency to mix with each other in one's brain. So for that, thank you very much good sir 🙂

  25. Miracle, not just great. I read a lot of books, listened to many economists and watched dozens of videos, which took MONTHS but I couldn't understand even a half of these words. But now in 14 minutes I understand all of it! Now I am sad I waste all that time on the other resources but happy that I kmow it is possible for me to understand economy. Thank you I will share this video everywhere.

  26. Hi my teacher, thank you sir very much for the great lessons. I make it a rule to watch each video twice, with and without the subtitles. May I ask a question? You sometimes seem to say like, there’s [plural nouns]. Is it common in spoken English?

  27. Thanks for this video I've been hoping any of the other beginner tutorials on YouTube would go over a few vocab words. You came through big.

  28. Business owners need more advertising and marketing alternatives. The current market is so saturated. Don't you think?

  29. Thank you so much for your video! Simple but claryfing definitions!

  30. Excelente, soy trader, y estas clases me sirven de mucho, espero ver muchas mas sobre este tema, Thank so much, I hope to see you soon

  31. since i started trading i haven't seen a manager who impresses me like Mr Brown

  32. I understand but business & stock marketing and international corruptions of Belgium authority are not combinations, authority of Belgium using my emails and social networking for things are not politics & are not religious means what ? You mast learn how to fight those peoples are against Peace and security, it doesn’t matter the report comes from even ethnic menolities to grows worldwide business and stock marketing, I don’t do anything with Belgium authority at all why if you see suspicious you don’t ask them and take action, since I was in United Kingdom I was in contacts with USA Sony music and others worldwide organizations and you never see my complain like this, was there but because United Kingdom is authority I was always leave responsibilities with them, thank you to take actions , alias BrownLonardo »

  33. Where to get the rest of terms of stock markets(all)?give info?if u know?

  34. Thank you adam we benefit lot from you, you have a stunning approach amazing 🙌

Leave a Reply

Your email address will not be published. Required fields are marked *