Stock market glossary

The basic terms, explained simply — for anyone just getting into the topic.

Stock

A share of ownership in a company. When you buy stock, you become a partial owner, and its value rises or falls based on how the business performs and market perception.

Bond

A loan you make to a company or government. In return, you receive interest for a set period and get the original amount back at maturity.

Security

The general name for any tradable financial instrument representing a right — it can be a stock, a bond, or a commercial paper.

Commercial paper

Short-term debt issued by companies to cover immediate funding needs, usually maturing in less than a year.

Portfolio

The set of assets (stocks, bonds, crypto, etc.) you hold. Diversifying a portfolio means spreading your money across several assets instead of concentrating it in one.

Volatility

How much an asset's price rises and falls over a period of time. Higher volatility generally means more risk, but also more opportunity.

Dividend

The portion of a company's profits distributed to its shareholders, usually on a periodic basis.

Fixed income / equity

Fixed income is investments with predictable returns (like bonds). Equity is investments whose return depends on the market (like stocks).

Put these terms into practice

In AlTanto you'll see these concepts applied to real signals, no need to be an expert.