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Stock Market Vocab
Term | Definition |
---|---|
market | A system wherein items are bought and sold for mutually-agreed upon prices. |
speculation | Buying things aggressively under the assumption that the value will increase dramatically in the future. |
buying on margin | Buying things with loaned money. |
crash | When the value of a market completely bursts. |
margin call | When lenders demand to be paid back what was lent AND interest. |
ripple effect | When one event creates a chain reaction of other events. |
recession | A gentle drop in the economy. |
depression | A sharp, long-lasting drop in the economy. |