stock market terms

9 Stock Market Terms And Slang Worth Knowing

Stock market terms and slang are rich in variety and meaning. They are especially valuable to understand when global markets start to drop. Here are a few of the more important ones to know:

stock market terms

  • Bear Market: As one of the more colorful stock market terms, a bear market refers to a  period of extended losses that result in a 20% loss or more of value from the market’s peak.  Prior to becoming a bear market, markets first go through a “correction” phase (see more stock market terms below). Wikipedia has a good list of bear markets going back to 1623
  •  Catch A Falling Knife: Buying something  as its price is declining rapidly.  Timed perfectly, to catch a falling knife, one buys at the bottom of the price decline and then sells later at a higher price. However the price may continue to fall and the asset can become worthless
  • Correction: A 10% or more decline in a market’s value. Corrections are sometimes followed by a bear market, which refers to a 20% decline

stock market terms and slang

  • Dead Cat Bounce: A small, temporary and artificial  rise in the price of assets that are otherwise on a downward trend. As one of the more memorable stock market terms, a dead cat bounce refers to the “fact” that even a dead cat will bounce up a bit after falling from a great height

stock market terms and slang

  • Frothy: Like a foamy head on a freshly-poured beer, a  frothy  market is one that might look good, but in reality it has little substance.  The term frothy, which is similar to the term bubble,  was used frequently during the real estate bubble and financial crisis of of 2007-2008
  • Irrational Exuberance: emotional behavior by market participants not based on rationality or facts. The term, was famously used in the 1990’s by Alan Greenspan, then-chairman of the US Federal Reserve, as a tech bubble emerged.  Since then it has become one of the most famous stock market terms and slang of all time

stock market terms and slang

  • Limited Visibility: a euphemism used by CEOs and market analysts when they have no idea whatsoever what is going to happen next.  This is one of the stock market terms and slang that one rarely wants to hear: in essence it means means “nobody knows” and”wait and see”
For more information about stock market terms and slang, check out some of the .edu and .org resources we’ve curated below:
  • Glossary of stock market terms, Wikipedia
  • Where stock market pricing and psychology intersect, Stanford University
  • A glossary of financial terms, NPR (a bit old, from 2010, but still relevant)
  • The signs of a bear market for stocks, by the Associated Press
We measure success by the understanding we deliver. If you could express it as a percentage, how much fresh understanding did we provide?
Curiousmatic