 Hey everybody, how you doing Russell Moore coming to you with my my channel that I love to I love this I love doing this by the way Dedicated to financial literacy and that's what I'm dedicated to I'm dedicated to Learning myself as I as I become a stronger and stronger investor and trader of the stock market but also to teach teach people and And pull others in and say hey you can learn you can earn on the stock market as well All right, my you know my quote my famous famous line that I always say You cannot earn if you do not learn So this is all about learning if you're a newbie if you just started investing or trading This is the channel for you. This is the place you want to be okay? So today I'm gonna talk about all my channel first of all be sure to hit the subscribe button, okay? Notifications so you can get more and more content in the future. All right hit that subscribe We're gonna talk about stock terminology 2021 okay, this is a new version. I know I did one in 2020 but I'm gonna do them every year this year I plan on doing several of them because many people you know you You're watching CNBC or you reading different things and you're like, what are these people talking about? They're using all these different financial terms. What are they talking about? Well, we're gonna go over that and hopefully you can get some understanding and get some some meaning and some Comprehension to some of these the things that I'm gonna be sharing and the words that I'll be using so that when you hear People talking about these stuff in the market. You'll say oh, that's what they said. That's what Russell said. All right All right, let's get started. Are you ready? Say I'm ready. All right good 2021 stock market terminology number one stock I know that I know this is basic if you've if you've been in a stock market for some time Don't worry about it. You don't watch this channel. This is for the new investor the new trader. All right stock What does the word stock mean? It basically means ownership in a company When you own stock you become an owner of that company I know people don't want to some people that they don't subscribe to that now I know you don't know you're not. Yes, you are you are an owner to that company now It's a small portion, but you are an owner at that point. All right Great. Okay stock market. What is the stock market? The stock market is a place where you make it where you go in exchange You go in exchange for example, if you went to a market a store You would go in the store pick up a product go to the cashier you give the money They get and then you leave the store with a product, correct, right? The same thing happens in the stock market the same thing happens You take your money you convert them to shares and you say I want shares in this company All right, someone sells you those shares. So that's the place of exchange. That's the stock market. All right Trading what does it mean when he says you hear the term trading trading basically is when stocks are bought and sold Trading is when stocks commodities bonds are bought and sold That's the activity of trading that happens in a market. All right, gotcha ticker symbol the definition What's ticker symbol ticker symbol ticker symbol is the unique code That's given to each company if you are on the market You cannot exist in the market without a ticker symbol. It's a unique code. It looks like an abbreviation basically four to three letters four to three letters Okay, it's it and basically identifies your company it identifies the company. Let me give you an example Neo right neo. It's an auto. It's an auto an EV auto company in China NiO is their ticker symbol Let me give you one that you're familiar with Ford Ford cars F. Just one one letter. Okay. All right That's the that's the ticker symbol for Ford Tesla TSLA that's Tesla Elon Musk Tesla. Hey to the moon baby to the moon All right, here we go. Give you one more example Let's say alphabet, which is Google they own YouTube this channel that you're watching, right? Okay GOG is their ticker symbol. All right, everybody got it. Does that make sense? It's a unique code that identifies a company in the market. All right Preferred stock versus common stock Basically preferred stock is is someone who's probably like more in the In the executive role of the company like a CEO CEO executives like that They would get what's called preferred stock preferred stock is a set dividend amount and Usually even if that company goes bankrupt They usually will take care of the preferred stockholders first now. I am a retail stockholder I am a common stock when I purchase stocks on the stock market I receive common stock and so will you newbie Unless you're Bill Gates daughter or something like that. So That's an example Bill Gates. Even though he's not CEO. He still would be a preferred stockholder Me I can buy the same Microsoft stock, but I would get a different type of stock a common stock preferred common elite Almost elite. All right. Okay. All right. So that's the difference. How do you make money on the stock market? through capital appreciation Capital appreciation or capital gains capital gains you make profit when you're when you're the price of the stock that you purchase Down here goes up. That's ascension. Okay another way that you can make money is through dividends now Companies will give out dividends when they make when they make money I'm just gonna keep it a real simple if they're not making money the and not every company gives out dividends I want to say that not every company gives out dividends McDonald's does P&G does procter and gamble Microsofts gives out a dividend a pretty nice dividend and what happens is they give you a portion of their earnings Their profit they profit. So they say hey, we're gonna give a piece of our profits to our stockholders That's pretty much a dividend It's usually determined during earnings season earnings. Let's go over that definition earnings report earning seasons There are four earning seasons or four earning sessions It's every quarter every three months a company all the companies will begin to report their progress on how they're doing Financially if they've lost during that quarter, you'll know about it if they profit it that you'll know about it Now some companies through different accounting principles can make their earnings look a little bit better than they really are But we're not gonna go there. All right, but pretty much they're they're they're safe and they're they're ethical All right, and many people will Trade and get stocks purchase stocks based on earnings reports. I don't necessarily do that all the time Most of the time I don't do that. I don't advise us for new newbies Because a company can make money and still the next day their stock will drop or Company didn't do too well on their earnings Call, but you may heard heard something that's coming in the future that's gonna take that company to another level and Even though they didn't have a great quarter their stock will go up So you can't necessarily go by the earnings call. Okay, but that's earnings earnings season earnings calls Okay, and as a stockholder you're more than welcome to listen in or even read the transcripts of the earnings call Just go to investors Investors relations On the website of the company that you're investing in and you can get that information or you can Google it. All right, okay I went over dividends. Okay, let's go over the stock market itself the different markets or exchanges I will say exchanges S&P 500 500 companies of Different sectors all over the world. These are major companies and it's an average of the entire market The S&P 500 basically is an average Dow Jones 30 companies It's an average the Wall Street Journal editors are the ones that choose the Dow Dow Jones Industrial average stocks and these are 30 companies from different industry industries Google Apple McDonald's You know, there's several high-profile companies that are on the Dow Jones 30 and and just like as the The editors of Wall Street just as they add people Companies to the to the Dow Jones. They're the ones that will remove you to if you're not doing well You got to continue to progress. All right. All right, Nasdaq the National Association of Sellers dealers autumn automated quotations. That's what it stands for. It's again an average It's usually a bunch of tech companies like and to it Dell Chip companies you got AMD you got IBM of course Microsoft Tech companies are pretty much the Nasdaq and it gives an outlook and it's a hundred use about a hundred companies and Out you know, it'll give an outlook a percentage of what the tech industry is doing as a whole got it Okay, and then you got New York Stock Exchange and that's usually the the companies that have been here for a while You got McDonald's on the not New York Stock Exchange. The New York Stock Exchange has been around since 1791 I believe 1791 and Nasdaq 1971 I Remember thinking it was it been here for a while, but 1971 is not too long. Okay. All right, so those are the those are the different Market exchanges, there's also the Russell 2000 Naps SEC what is the SEC you're gonna hear that quite a bit SEC they regulate and they basically police the markets they police the The brokerages and the banks to make sure that people are not Cheating the consumer you and I the retail are the consumer the retail investor and so they're there for protection hopefully so SEC Okay, and it's the Securities Exchange Commission. That's the name Securities Exchange Commission and they exactly what they say their security they secure the exchange Okay, and they are a commission and they will find sell they will kick people off the market Everything they are the police. Okay. All right IPO initial public offering Initial public offering. I'm just gonna really quickly give this a brief definition Initial public offering is usually say a company is private. They're private and they want to go public Why would a company want to go public usually to raise money? So then they would go to a bank an investment bank such as Chase Bank Morgan Stanley UBS Bank of America has an investment Region they have an investment section of their company and what they'll do is say hey We want to go we want to go we want to go public We want an IPO that that bank will then initiate an IPO and determine say how much money Do you want to raise? That's what they'll ask them How much do you want to raise company the company say we want to raise 30 billion or 30 million 50 million Whatever and then the bank will determine how much they should Sell their shares for So when that IPO starts, they'll be at $20 a share. Well, the bank helped them determine that. Okay, so That's pretty much so they get out and then they get money from the public. That's when you and I we buy shares Now the bank also Buy shares the investment bank buy share They also get profit when you and I purchase shares from that company So that's an IPO initial public offering now There is a second public offering that they'll they'll they'll put out another offering to raise more money if they need All right, okay fundamental analysts and Technical analyzer fundamental analysts basically look at the history of the company They look at their finances and they analyze a company and they determine if they're going to buy that stock based on Usually fundamental financial principles. So they'll look at the balance sheet. They'll look at their liabilities their equities They'll look at the CEO. They'll look at the competition. It's all based on research technical is more charts graphs Trends Candlesticks they call them you can look at candlesticks and And and make an educated guess on where that stock is going to me. You should learn both learn technical analyzing and fundamental Fundamental takes a little time. It's a little bit more tedious Requires a little bit more effort Now it requires effort to learn technical analyzing but once you learn it and you learn certain trends find out what's good for you and Then go roll with it and I would say use both okay as a newbie This is this is what I want to tell the new investors the new traders learn both Okay. All right. I went over dividend yield. I think that's it For this session and I will go over more terms on the next session So please stay tuned subscribe to the channel and Remember my motto my quote that I love to say all the time you cannot earn if you do not learn This is Russell Moore Dedicated to financial literacy. Love you guys. Have a great day