 Hey, good morning, everybody. Welcome to Dedicated to Financial Literacy. Russell Moore coming to you again. Just want to welcome you. Good, good morning. I hope you're having a great week so far. I know it's just Tuesday, but today what I want to do is I want to do an update. I think in 2019 I did a segment on terminology, stock terminology, and I'm going to do one for 2022. And I'm going to probably do a segment today, and I'm going to probably do another segment on stock terminology, and just going over different terms. And again, this is for the beginner, the beginning investor, where you might feel like you're hearing all these words, you're hearing all this jargon, you're hearing all this language, and you don't know what people are talking about. You're new to the market. And so this list is not exhaustive. I just want to make that very clear. The list is not exhaustive. There are thousands of words. I want to give you a resource, though. Investopedia, and I think I've mentioned this before, investopedia.com is a good resource to just look up different terms and words and what things mean. But I chose 20, and I'm going to go over them pretty quickly. I would say, like I always say, if you do not learn, you will not earn. Don't I always say that gang? All right, be sure to hit the subscribe button as well, and give me a thumbs up. All right, let's keep it going. Let's keep it going. And regardless of whether I get a thumbs up or not, I'm going to continue to give you content because I care about you. And what do I care about you? I care about what happens to you financially. I want you to be dedicated to financial literacy. 2022, things are going to change for you. Let's say that again. In 2022, things are going to change for you for the better. All right? All right, here we go. We're going to start again. This is stock market terminology. And oh, I think that terminology where terminology is spelled wrong. Well, okay. All right. It's been years since I won the spelling bee. All right. Number one, you're going to hear the term capital appreciation. Capital appreciation. Basically, all that saying is your stock has appreciated. It's ascended. And I want to say this about making money in the stock market. There's several ways to make money in the stock market. Most people think that it's only if your stock ascends. Now, for the basic brand new investor, yeah, that's true. But there are other ways to make money in the stock market. I'm not doing a video on options, but there is a thing called options or derivatives. And in the options market, you can actually make money and increase your portfolio when the market goes down, when it's depreciating. You can also make money when it goes sideways, when it's called consolidating. You'll hear that term. As a matter of fact, let's throw that term in there. Consolidation. When the market is just, it's not going up or down. It's basically leveled in balance and it's going across. Okay. No one's winning the bears or the bulls. And we'll talk about bears and bulls as well. So consolidation basically means the market is not going, it's not uptrending. It's not downtrending. It's basically going straight across. Consolidation. All right. So capital ascension means it's going up. Your stocks are going up. Number two, dividend. And I've explained this before, but I'm going to say this. I'm going to add that in here. Dividend. Think of the word divide, divvy, to divvy up, to divvy up your proceeds. So that's basically what dividend means. It's when the owners of the company, and you are a stockholder, you are an owner once you own the stock, receive a portion of the profits. That's what it means. A company, and not all companies, let me say this again, not all companies distribute a dividend. For example, Amazon does not. Apple does, Microsoft does. So if you own those stocks, you'll receive a dividend. If you hold it a certain amount of time, you have to own the stock at a certain time. And we'll talk about X dates and all that kind of stuff, where there's a particular date. You have to own that stock in order to participate in the distribution of the dividend. So a company will get its profits and they'll say, hey, we're making good money, we're growing, we're expanding, we're doing well. Let's give some of the profits to our shareholders. And there are two types of shareholders. There's a preferred stockholder and there's a common stockholder. You and I are common stockholders. The everyday investor, retail investor, preferred are like your CEOs, the executive teams, people on the executive team and the leadership team of the company. Okay, they get a set dividend and that dividend is given to them, regardless of whether we get ours or not. Okay, so if the company goes under, the preferred shareholders will get there, they'll get theirs first and we may get ours. All right, so that's dividend. It's divvied up, profits divided to the shareholder ticker symbol. I wanted to throw that in there because some people were, what is a ticker symbol? Now historically, there was a ticker machine that actually ran tape and that's how they would read the stocks on the ticker symbol machine. Ticker symbol is basically abbreviation. And a practical way of thinking about it is that if you are online trying to looking up a stock, can you imagine typing up the entire title of that stock, the name of that company? So this makes it much easier. For example, Microsoft MSFT, that's the ticker symbol. It's an abbreviation that identifies the company on the stock market. That's where the ticker symbol is. Okay, for example, Ford is F. All right, Alibaba, Baba, B-A-B-A. All right, Amazon, M-A, I mean AMZN. It's Amazon. That's the ticker symbol. All right, Google, which is really Alphabet. It's the company name. Google, G-O-O-G. Okay, everybody got it? All right, good. Let's go on. Earnings reports. I want to bring this up. You're going to hear that as a new investor. Earnings season, earning reports. Every quarter, a company reports its earnings. And it's a good time to assess that company. And if you go to a company's website, under investors relations, most of the time it's going to be under investors relations, or you can Google investors relations, okay? You can read the transcripts or you can listen to the conference call. Every quarter, a company, Apple, Microsoft, Dell, IBM, Boeing, okay? Pfizer, all of them have conference calls where the CEO, the CFO, and the COO is on the call. Also on the call a lot of time are analysts. These analysts come from investment banking firms. And they'll be there sometimes to do a Q&A, and they'll ask questions about different things that's going on with the company, any updates. And so it's very, very, it's very, very informative. And you can find out a lot about the company that'll help you in the future investment of that company, all right? So earnings reporting, for earning seasons is every quarter. And they discuss how well the company did financially if there was any hiccups or any problems, any issues, like supply chain, chip shortage, stuff, the things that problems that it may have hindered them from doing their best from our earnings standpoint, okay? It's an earnings call. All right. NASDAQ. I'm going to talk about right now the three indexes, exchanges. So you might say, okay, what is the NASDAQ? Let me test somebody that might be watching this channel, and you've been on the stock market for a while. What's the definition of NASDAQ? NASDAQ is the actual abbreviation. But what does it stand for? Okay, I'll help you out a little bit. All right, let me help you out. National Association of Securities Dealers Automated Quotations. And again, the NASDAQ, all it is, it consists of 100 companies, and it's a sample. It's an average. Now, the NASDAQ is primarily a tech index. So a lot of tech stocks, Tesla, although Tesla has been, I believe it's on the S&P 500 now, but a Dell, Intuit, Microsoft, Google, tech stocks, mainly. There's also Biotech, I believe, Biotech on the NASDAQ, okay? So it's 100 stocks, 100 companies, all right? But it's an average of the entire market. It's a sample. It says these 100 companies, what they're doing and how they're doing basically is a sample and an average of all of the companies that are in these sectors, all right? So it's a sample. It's an average. Okay, the Dell, same thing. It's an average. It's a sample. 30 companies, different sectors, different areas, different industries. But it's 30 companies, the Dell Jones industrial average, okay? So if you hear the term, the Dell, the Dell, 30 companies, it's a mixture. It's not all tech. It's not all hospitality. It's not all pharmaceutical. It's a combination of different companies. And so the Dell gives you more of a broad base of the market, an average of what the whole entire market is doing, okay? And then S&P 500, everybody's heard of the S&P 500. And it's 500 companies, large companies. And again, it's an average. Okay, so keep that in mind. These indexes are not the entire market. The market consists of thousands of companies. There's small cap. There's the Russell 2000, which is not, I don't have that up here. My name is Russell, the Russell 2000, small cap, medium cap. There's a lot of different indexes and markets, okay? All right, let's go on. Stockholder. What is a stockholder? It's basically you own stock in the company. You are the owner. All right, next. Stock split. What is a stock split? A company sometimes, well, what will happen? They're growing and they're doing well, and their stock price begins to rise. Say it's at $50. And they begin to feel like, you know what, we're keeping some investors out because the price is so high. So they may say, we're going to do a two to one stock split. Well, what happens? Now they cut the price to $25. Instead of it being 50, they cut it to 25. But they may cut it to 25. That enables more people to get in and invest. Does that make sense? Now here's the thing. The stock price may decline, but the amount, the amount of equity and how much you own does not change. Keep that in mind. So the stock price will decline, but the amount that you own and price and amount of money and equity does not change, okay? So your shares will double. You'll have more shares, but it'll still equal to the same amount, all right? So that's a stock split. But I wanted to give you the purpose of a stock split. There are other purposes too, but one of the main ones is that they want to put more outstanding shares out there, but they also want to get, they want to open it up to a broader base of investors. And so they're saying, you know what, people may not buy it at this price, but what we'll do is do a split and that'll enable more investors to come in and buy more shares, all right? Got you. Okay, you got it? Stock price or share price, you'll hear that. What's the stock price? What's the share price? That's basically how much that stock is selling for per share. So when you go on a platform, when you go on a platform and you create an account and you start buying stocks, you're going to see what's called a share price or a stock price. That's how much that company is, their price for per share that they're selling that stock for, okay? All right. Stock market, you'll hear the term stock market or the market. Have you checked the market today? The market basically, okay, if you go to the store and you buy milk, eggs and butter, right? Crackers and soup and fruit and veggies, okay? You buy all that stuff at the store. Where do they call it? A market. A market is a place where you take your currency and you purchase products. The same thing with the stock market. It's a place where investors buy and sell securities, equities, and stocks, derivatives, options, whatever, forex. There's so many things. Crypto. So it's a place where buying and selling is taking place. Say you want to buy a stock, there's somebody on the other end that's selling the stock, all right? It's a marketplace, all right? The market. Full service brokerage firm and discount brokerage firm. There are two types of brokerage firms. There's a full service brokerage firm, and I'll give you an example. Chase Bank, UBS, Goldman Sachs, Morgan Stanley, company big huge institutional banks. And the reason why they're called a full service brokerage firm is because they also have the capabilities of doing IPOs. And what's an IPO? It's an initial public offering. It's when a company says, and here's another word for you, when a company says, you know what, we've been private, we want to expand, our products are doing well, we're growing, we want to go public and make our company, we want to make it available to public investors so that you and I, which is called a retail investor, can get involved and have a piece and own a piece of the company. But they do it a lot of times. IPOs is to raise money, raise capital, okay? Well, these banks are the ones that create the listing. They evaluate the company and tell the company, this is what you're worth. This is what we think you should have your share price as. This is what you should open up your IPO as, okay? They have a division that does analyzing when you're a full service brokerage firm. They have a retail division. They have several divisions. The discount brokerage firm is your Webull, Robinhood, Fidelity, Ameritrade, TD Ameritrade. Those are discount brokerage firms. They don't do IPOs. They basically are firm, they furnish, they are strictly for us, the retail investor, the everyday investor, okay? So that's the difference. The big banks, the institutional, they handle the huge hedge fund firms and they're the hedge fund firms and they're the ones that reach out to the companies and they're the ones that create the IPO listings. The discount brokerage firms, they handle the retailers only, okay? So Robinhood does not do IPOs, all right? Okay. I want to make that clear. You'll hear the term stocks. We've already went through that. A stock is a piece of the company. It's a piece. It's you have stock in the company. You have, you're a part of the company. You're a part, you're an owner. And so you own stocks. You own stock in that company, which enables you, even at times, to even make certain suggestions. You can't, you probably won't be able to make any decisions, but you will be able to make suggestions as an owner. You'll vote on certain things and everything. So equities. Same thing. If you hear stocks and you hear somebody say equities, they're talking about stocks, okay, for the most part. Securities is another word that you're here. All right? EPS, earnings per share. Basically, it's what a company has earned and it's usually the last quarter or the end of the year. The EPS is vital. How they come to that is they take the earnings and they divide it by the outstanding shares that's left and they'll get what's called earnings per share. The reason why I put that on there is because you're going to hear that quite a bit. You'll hear PE ratio. What's the PE ratio? Many times they say you wanted between $1 to $5 a low PE ratio. It means that there's room for that company to grow and it's usually kind of undervalued. That's not always the case, but we're not going to get into that today. We're not going to talk about PE ratio. I just wanted to put EPS there because you're going to hear that quite a bit. If a company has a good EPS, usually historically, it's going to be a good company. Now, that could change in a year. It can change in months, so you always have to keep an eye on it. But just so you hear that term, you're going to hear that term. You're going to hear also profit margin, margins, how well a company is doing from a profit standpoint. You hear the term bull. Bull market, bear market. Bull market means the market is going up. It's green. That's another term you're here. The market was green today. Think of it this way. Green ascension, meaning money. We made money. Red down. A red day means down. A green day means up. The market was up. You were making money. You were in the green. Now, that could change with options because you could have a green day and options and be buying puts where the market is going down and you're expecting the market to go down and make money. That's green for you. But this is for beginners. We're not talking about options. We're just talking about everyday market of stock ascension. Green means up. You're making money. Red means down. The bear market means down. Bull means up. Bear means down. A sell-off. That's another term you're here. You'll hear the word correction and sell-off. When stocks sell off, that means people are selling the stock. And usually when that happens, the stock, that company, the share price begins to descend. So when you hear sell-off, there's a big sell-off happening or there's a correction happening to the market. That means the market has been trending up and it reverses and goes down. Everybody got it. Bull means up. Bear means down. All right. To the moon. You'll hear that term sometimes. Meet Kevin on his channel. He's always saying, to the moon has even a t-shirt. I even have one of his t-shirts. To the moon means, and I want to say that Elon Musk may have coined it. I don't know who coined it, but to the moon means it's going up. It's ascending. It's ascending. The stock is ascending. It's to the moon. All right. Volume. Please, if you don't learn anything else from this, these terminologies, volume is very important. And really it's the amount of a stock is traded at any given time. That's the volume. It's the amount. So if you go in Robinhood or any platform, you should be able to see the volume. So if a stock is going up, usually that volume, you will see the volume increase. It's a very good indicator on the direction of a stock. It's not the only thing you want to look at, but it's very important. So volume, it's the amount a stock is traded at any given time. S-E-C. The S-E-C is basically the police. They're the regulators. A government agency called the S-E-C Security Exchange Commissions. Go on their website. Begin to look at things that date different criteria. Find out about them. Don't shun away from the S-E-C. They're not evil. They're here to protect us, protect the consumer. There's a lot of things that could happen if it wasn't for the S-E-C. Hello, Robinhood. So I'm just saying, get to know and get to go on the website and get to know the S-E-C. Now, there's a particular thing that I wanted to bring up about the S-E-C, and that is the PDT rule. It's called the pattern day trade rule. So you got, I believe, three day trades per week. If you exceed three and go to four, I believe that max is four in a five-day period. Your account can be shut down different depending on the platform you're on. It's my phone, and I won't edit it. You guys know me. I'm not going to edit that. So pattern day trade rule. In other words, you want to stay within this certain amount of day trades per week. Okay, if your account exceeds $25,000, $25,000 or above, you can day trade unlimitedly. But if your account is under $25,000, then you've got to abide by the pattern day trade rule, PDT. So all right, so be careful of that. So I want to make sure I tell you that. Anyway, I know this was long again. But hopefully, I'm going to do another, a part two of terms and different lingo that you might hear around when you start investing. And this will help you understand some of these things before you start investing. Okay? All right, I want you to have a wonderful day. God bless you. I wish I pray for the best for you and keep me covered in prayer. Physically, I've been battling, but I'm doing much better. And I just want to thank everybody for watching the channel and have a wonderful, wonderful day.