75+ Stock Market Terms Every Beginner Investor Needs to Know

If you are new to investing in Nigerian stocks, the first thing you will discover is that the stock market has a language of its own.

You will hear words such as bull market, dividend yield, market capitalisation, rights issue, bonus issue, bid price, offer price, CSCS Number and Clearing House Number.

At first, these terms can sound unnecessarily complicated.

However, they become much easier once you understand what they mean and, more importantly, how they affect your money.

This guide explains 85 stock market terms every beginner investor should know in 2026 and beyond. I will explain them in plain English, with particular attention to the Nigerian market and the Nigerian Exchange (NGX).

This knowledge matters a lot because the Nigeria’s stock market has attracted significantly more attention from retail investors in recent years. NGX reported that the number of retail investors grew from fewer than 1 million in 2023 to more than 6 million in 2025.

The market itself also experienced a remarkable 2025. The NGX All-Share Index gained 51.19%, while equity market capitalisation reached approximately US$75.01 billion at the end of the year.

These numbers are exciting. Nevertheless, a rising market does not automatically make every investor profitable.

You still need to understand what you are buying, how the market works and what the numbers on your investment platform actually mean.

So, let’s get into the stock market terms you need to know.

1. Stock

A stock represents ownership in a company. When you buy shares of a publicly listed company, you become a shareholder of that business.

For example, if you buy shares in a listed Nigerian company like Dangote or Aradel, you own a tiny portion of the company.

Your ownership percentage depends on the number of shares you own compared with the company’s total outstanding shares.

2. Share

A share is a single unit of ownership in a company. The words “stock” and “share” are often used interchangeably.

However, stock can refer broadly to ownership in companies, while a share represents a specific unit of ownership.

If a company has one billion shares outstanding and you own 10,000 shares, you own a very small fraction of that company.

3. Shareholder

A shareholder is someone who owns shares in a company. Shareholders can potentially benefit when the company’s share price increases.

They may also receive dividends when the company declares them. However, shareholders also bear investment risk because the value of their shares can fall.

4. Stockbroker

A stockbroker is a licensed intermediary that helps investors buy and sell securities.

In Nigeria, investors generally appoint a securities dealer or stockbroker that is a registered Trading License Holder of NGX.

Your broker provides the bridge between you and the market. This is why choosing a reputable stockbroker is one of the most important decisions a new investor makes.

5. Nigerian Exchange (NGX)

The Nigerian Exchange Group, commonly called NGX, operates Nigeria’s principal public securities exchange.

It provides the marketplace where buyers and sellers can trade listed securities.

Think of NGX as an organised marketplace. Your stockbroker gives you access to that marketplace.

6. Securities and Exchange Commission (SEC)

The Securities and Exchange Commission, or SEC Nigeria, is the country’s apex regulatory institution for the capital market.

It establishes and enforces rules designed to promote an orderly market and protect investors.

Therefore, when evaluating a financial market operator, checking its regulatory status is essential.

7. CSCS

CSCS stands for Central Securities Clearing System.

It operates Nigeria’s central depository, clearing and settlement infrastructure for securities transactions.

In simple terms, CSCS helps keep the electronic records of securities ownership and facilitates the clearing and settlement of trades.

CSCS has operated in Nigeria’s capital market since 1997.

8. CSCS Number

A CSCS account number identifies an investor’s securities account within the CSCS system.

It helps link your investment holdings and transactions to your account.

When you buy Nigerian shares through a broker, your holdings can be recorded electronically within the market’s central infrastructure. This is why keeping your CSCS details safe matters.

9. Clearing House Number (CHN)

The Clearing House Number, commonly abbreviated as CHN, is a unique number used to identify an investor in Nigeria’s capital market.

CSCS specifically describes the CHN as a unique number that identifies each investor in the Nigerian capital market.

This is one of the most important terms every Nigerian stock market investor should understand.

Your broker may ask for your CHN when handling certain investment-related activities. If you cannot remember yours, CSCS provides services that allow investors to retrieve their CHN.

10. Central Depository

A central depository is an institution that holds securities electronically. Instead of receiving physical share certificates for every transaction, modern markets record ownership electronically. In Nigeria, CSCS performs this central depository function.

Also Read:

• Most Common Mistakes in the Stock Trading Business
• Dangote Refinery IPO Prospectus Summarized and PDF

11. Registrar

A registrar maintains shareholder records for a company. Registrars handle important shareholder-related activities.

These can include dividend processing, shareholder information and certain corporate actions. Therefore, if you have an issue involving a company’s shareholder records, the registrar may become important.

12. Trading Account

Your trading account is the account you use with your stockbroker to buy and sell investments.

It allows you to place orders and monitor your portfolio. Opening a trading account usually involves completing the required KYC process.

13. KYC

KYC means Know Your Customer.

It refers to the identification and verification process financial institutions use before providing certain services.

You may need identification documents and other personal information when opening a brokerage account. The purpose is to help establish who you are and support regulatory compliance.

14. Portfolio

Your portfolio is the collection of investments you own. For example, you could have shares in banks, telecommunications companies, consumer companies and industrial companies. All those investments together form your portfolio.

15. Diversification

Diversification means spreading your investments across different assets, companies or sectors.

The objective is simple.

You do not want one investment to determine the fate of your entire portfolio.

For instance, an investor who owns only banking stocks may face greater sector-specific risk than someone who also owns companies from telecommunications, consumer goods and industrial sectors.

16. Market Capitalisation

Market capitalisation measures the total market value of a company’s outstanding shares.

The basic formula is: Market Capitalisation = Share Price × Shares Outstanding

Suppose a company has one billion shares and each share trades at US$0.075. Its market capitalisation would be approximately US$75.48 million.

Market capitalisation helps investors understand the relative size of publicly traded companies.

17. Large-Cap Stock

A large-cap stock belongs to a relatively large company based on market capitalisation.  These companies often have established operations and significant investor interest.

However, large-cap does not mean risk-free. Even large companies can experience falling earnings and share prices.

18. Mid-Cap Stock

A mid-cap stock belongs to a company that sits between large companies and smaller companies in terms of market capitalisation.

Mid-cap companies can offer growth opportunities. However, their shares may sometimes have less liquidity than the biggest companies.

19. Small-Cap Stock

A small-cap company has a relatively small market capitalisation. Some small companies can grow dramatically. However, they may also carry higher business, liquidity and volatility risks.

Consequently, beginners should research small-cap companies carefully rather than buying simply because the share price looks cheap.

20. Blue-Chip Stock

Blue-chip stocks are shares of large, established companies with strong market positions and relatively long operating histories.

Investors often associate blue-chip stocks with financial strength and stability. Still, “blue chip” does not mean “guaranteed profit.”

Typical examples are the likes if Bua Cement Plc, Dangote Cement Plc, Lafarge Africa Plc, MTN Nigeria Communications Plc, GTCO, Zenith Bank Plc, NVIDIA, Alphabet, Meta, Apple Inc, etc. 

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• 7 Things I’ve Learnt From Starting a Business in My Early 20s

21. Penny Stock

A penny stock generally refers to a low-priced stock, although the exact definition varies between markets.

A low share price does not necessarily mean a company is cheap. A US$0.0015 stock can be more expensive relative to its business value than a US$0.38 stock. This is an important lesson for beginners.

22. Share Price

The share price is the current price at which a share trades in the market. Share price changes according to supply and demand.

However, price alone tells you very little about whether a company is attractive. You should also examine earnings, cash flow, debt, valuation and future prospects. Spend time to do your fundamental and technical analysis of any stock before buying it.

23. Bid Price

The bid price is the highest price a buyer is currently willing to pay for a security at any given time. It represents buying demand.

24. Ask Price

The ask price, sometimes called the offer price, is the lowest price at which a seller is currently willing to sell. The difference between the bid and ask prices is important when evaluating liquidity.

25. Bid-Ask Spread

The bid-ask spread is the difference between the highest current buying price and the lowest current selling price.

For example, if buyers are bidding US$0.075 and sellers are asking US$0.076, the spread is approximately US$0.001. A smaller spread often indicates stronger liquidity.

26. Liquidity

Liquidity describes how easily you can buy or sell an investment without significantly affecting its price. 

Highly liquid stocks generally have many buyers and sellers while less liquid stocks can be harder to trade quickly at your desired price.

This matters because owning a stock is only part of investing. Being able to exit when you need to is equally important. Before you jump on a stock because everyone is talking about it, find out how easy it is to exit when you want.

27. Trading Volume

Trading volume measures how many shares change hands during a particular period.

High volume can indicate strong market activity. However, high volume alone does not mean that a stock is a good investment. It simply tells you that significant trading activity occurred.

28. Market Order

A market order instructs your broker to buy or sell a security at the best available price.

Market orders prioritise execution. However, the final execution price can differ from the price you expected, especially in less liquid markets.

29. Limit Order

A limit order allows you to specify the maximum price you will pay when buying or the minimum price you will accept when selling.

For example, you might place a buy limit order at US$0.075. Your order should execute at US$0.075 or better, subject to available sellers and market rules.

30. Stop Order

A stop order becomes active when a specified price level is reached. Investors can use stop orders as part of a risk-management strategy.

However, execution conditions can vary, so you should understand the order rules used by your broker.

Also Read:

• Intraday Trading Guide for Beginners
• 15 Best Income-Generating Assets to Become Wealthy

31. Buy Order

A buy order is an instruction you give to your broker to purchase a specific number of shares in a company at either the current market price or a target price. 

A buy order is always submitted through your broker or approved trading platform.

32. Sell Order

A sell order is an instruction given to a broker to sell a specific number of shares of a stock. When you instruct your broker to sell shares you own at a given price, that’s a sell order.

The transaction occurs when your order matches available demand under the market’s trading rules.

33. Bull Market

A bull market is a period characterised by generally rising asset prices and optimistic investor sentiment. When investors say the market is bullish, they expect prices to continue rising.

Nigeria experienced a powerful bullish period in 2025, when the NGX All-Share Index gained more than 51%.

34. Bear Market

A bear market describes a prolonged period of declining prices and pessimistic sentiment. Bear markets can be uncomfortable.

Nevertheless, they can also create opportunities for investors who focus on fundamentally strong businesses and have a long investment horizon.

35. Bullish

If an investor is bullish on a stock, they expect its price to rise.

For example:

“I am bullish on this company because I expect earnings to grow.”

36. Bearish

If an investor is bearish, they expect the stock price to decline. Being bearish does not necessarily mean you dislike the company. It may simply mean you believe its current valuation is too high.

37. Market Volatility

Market volatility is a statistical measure of how much and how quickly an asset or index price fluctuates over time.

A highly volatile stock can rise rapidly. It can also fall rapidly. Therefore, volatility creates both opportunity and risk.

38. Capital Gain

A capital gain occurs when you sell an investment for more than you paid for it.

Suppose you bought shares for US$75.48 and later sold them for US$98.12. Your gross capital gain is approximately US$22.64 before applicable costs and taxes.

39. Capital Loss

A capital loss occurs when you sell an investment for less than you paid. If you buy shares for US$75.48 and sell them for US$60.38, you have an approximately US$15.10 capital loss before considering transaction costs.

40. Dividend

A dividend is a distribution of part of a company’s profits to shareholders. 

Before buying shares, you must understand that it is not every company that pays dividends. Some companies retain profits to finance expansion instead.

As an investor, don’t buy a stock solely because it has historically paid dividends. If your purpose of investing in the stock market is for you to receive dividends, then you must do proper research first.

Some people invest because of capital gains, dividends, or both.

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41. Dividend Yield

Dividend yield measures annual dividend income relative to the share price.

The simplified formula is: Dividend Yield = Annual Dividend Per Share ÷ Share Price × 100

If a company pays US$0.0075 per share annually and its share price is US$0.15, the dividend yield is approximately 5%.

42. Dividend Per Share

Dividend per share, or DPS, tells you how much dividend a company pays for each share.

For example, if a company declares US$0.0038 per share and you own 10,000 shares, your gross dividend would be approximately US$37.74.

43. Dividend Declaration Date

This is the date when a company’s board announces a dividend. The announcement may include the dividend amount and relevant shareholder dates. 

44. Qualification Date

The qualification date determines which shareholders qualify for a particular corporate action.

For dividend investors, understanding the relevant qualification date is critical. Do not assume that buying a stock shortly before payment automatically makes you eligible.

45. Payment Date

The payment date is when an approved dividend is scheduled to be paid to qualifying shareholders.

46. Ex-Dividend Date

The ex-dividend date marks the point at which shares trade without entitlement to a particular dividend.

Investors often misunderstand this concept. Therefore, always check the official corporate-action announcement rather than relying on social-media explanations.

47. Retained Earnings

Retained earnings are profits a company keeps rather than distributing to shareholders.

Companies can use retained earnings to expand operations, repay debt or finance other activities. 

When you invest in a company in so much debt, there’s a tendency that they will use their profit to clear their debt first. It won’t be ideal to be in so much debt with interest increasing daily while paying dividends. 

48. Earnings Per Share (EPS)

EPS measures the portion of a company’s profit attributable to each outstanding share.

A simplified formula is: EPS = Profit Available to Ordinary Shareholders ÷ Number of Outstanding Shares

EPS is one of the most commonly used figures in fundamental analysis.

49. Price-to-Earnings Ratio (P/E Ratio)

The P/E ratio compares a company’s share price with its earnings per share.

The formula is: P/E = Share Price ÷ EPS

For example, if a stock trades at US$0.075 and earns US$0.0075 per share, its P/E is 10.

Investors often use P/E to compare valuations. However, a low P/E does not automatically mean a stock is undervalued.

50. Price-to-Book Ratio (P/B Ratio)

The P/B ratio compares a company’s market value with its book value. It can be useful when analysing companies where tangible assets matter significantly.

Banks and financial institutions are common examples where book-value metrics can provide useful context.

51. Return on Equity (ROE)

Return on Equity measures how effectively a company generates profit from shareholders’ equity.

A higher ROE can indicate efficient use of shareholder capital. However, debt can influence ROE. Therefore, it’s not advisable to analyse return on equity in isolation.

52. Revenue

Revenue is the money a company generates from its business activities before deducting expenses.

It is often called sales or turnover. Growing revenue can be encouraging. However, revenue growth does not automatically mean profit growth.

53. Net Profit

Net profit is the amount left after a company deducts its expenses, taxes, interest and other applicable costs from revenue.

Investors often examine whether profits are growing consistently.

54. Earnings

Earnings generally refer to the profits a company generates.

When analysts say “earnings increased,” they are usually discussing changes in profitability.

55. Fundamental Analysis

Fundamental analysis involves studying a company’s financial performance, business model, industry, management and valuation.

A fundamental investor might examine:

• Revenue
• Profit
• Cash flow
• Debt
• Dividends
• Margins
• Competitive advantages
• Valuation

The objective is to determine whether the market price reasonably reflects the company’s underlying value.

56. Technical Analysis

Technical analysis studies price movements, trading volume and market patterns.

Most technical traders may use charts, moving averages, support levels and resistance levels. 

Fundamental and technical analysis can be used separately or together.

57. Support

Support is a price area where buying interest has historically appeared strongly enough to slow or reverse a decline.

However, support is not a guaranteed floor. It can break.

58. Resistance

Resistance is a price area where selling pressure has historically appeared. When resistance breaks decisively, traders may interpret it as a potential bullish signal.

Again, it is not guaranteed.

59. Moving Average

A moving average calculates the average price over a specified period.

It can help traders identify trends and smooth short-term price fluctuations.

Popular examples include the 50-day and 200-day moving averages.

60. Index

A stock-market index tracks the performance of a selected group of securities. The index provides investors with a way to assess broad market performance.

61. NGX All-Share Index (ASI)

The NGX All-Share Index is one of Nigeria’s major equity-market benchmarks.

When people say “the Nigerian stock market rose today,” they may be referring to the movement of the ASI.

The index crossed 200,000 points in March 2026, illustrating the scale of the market’s recent rally.

Also Read: 

• What is the Best Strategy to Trade Price Action?
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62. Sector Index

A sector index tracks a specific group of companies within an industry.

Examples can include banking, insurance, consumer goods and industrial sectors.

Sector performance helps investors identify which areas of the market are attracting buying or selling interest.

63. ETF

ETF stands for Exchange-Traded Fund.

An ETF is an investment vehicle that trades on an exchange like a stock.

It can provide exposure to a basket of assets. Therefore, an ETF can be useful for investors seeking diversification through a single investment.

64. IPO

IPO means Initial Public Offering.

It occurs when a private company offers shares to the public for the first time.

Investors can participate in an IPO if they meet the applicable requirements and the offer is available to them. 

65. Public Offer

A public offer allows investors to subscribe for securities offered to the public.

It can involve a new issue of shares or an offer of existing securities, depending on the structure. The most recent examples are the Dangote Refinery and SpaceX public offering. 

66. Rights Issue

A rights issue gives existing shareholders an opportunity to purchase additional shares, usually at a specified price and according to stated terms.

Companies may use rights issues to raise additional capital.

As an existing shareholder, you should read the offer document carefully before deciding whether to participate.

67. Bonus Issue

A bonus issue involves distributing additional shares to existing shareholders without requiring them to pay the normal purchase price for those additional shares.

However, receiving more shares does not automatically mean you have become richer by the same amount.

The share price can adjust to reflect the increased number of shares.

68. Stock Split

A stock split increases the number of shares while proportionally reducing the price per share.

For example, in a hypothetical 2-for-1 split, someone holding 100 shares could receive 200 shares, while the price adjusts accordingly. The split itself does not magically create economic value.  

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69. Market Correction

A market correction is a significant price decline after a period of gains.

Corrections can occur for many reasons. They can also be healthy because they allow markets to reset after excessive optimism.

70. Market Crash

A market crash is a sharp and often rapid decline in asset prices.

Crashes can be triggered by economic shocks, financial crises, geopolitical events or extreme investor panic.

71. Trading Session

A trading session is a period during which securities can be traded on the exchange under established market rules. Investors should understand their exchange’s trading calendar and hours.

72. Settlement

Settlement is the process through which the buyer receives the securities and the seller receives the corresponding funds.

This is different from the trade date. The trade may happen today while settlement occurs later.

73. T+1 Settlement

T+1 means trade date plus one business day.

Nigeria’s SEC announced that eligible equities and commodities transactions cleared and settled through CSCS moved to T+1 from June 1, 2026.

The SEC later clarified that affected transactions settle at 5:00 p.m. on T+1. This is an important update for Nigerian investors.

If you are using older investment articles, you may still see references to T+2. For eligible transactions, that information is now outdated.

74. Direct Cash Settlement (DCS)

Direct Cash Settlement means the net proceeds from certain securities transactions are paid directly into an investor’s designated bank account through the market’s settlement infrastructure.

The SEC describes DCS as a policy that facilitates the direct crediting of an investor’s bank account with net proceeds from a stock-market transaction through CSCS.

This system adds another layer of convenience and transparency for investors.

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75. Custodian

A custodian is a financial institution that holds and safeguards securities and related assets on behalf of clients.

Institutional investors commonly use custodians. They can also play an important role in foreign investment flows.

76. Market Maker

A market maker provides liquidity by continuously quoting buying and selling prices for securities under applicable market rules.

Market makers can help improve liquidity. However, their activities operate within the rules established by the relevant market and regulators.

77. Blue-Sky Thinking

This is not a formal technical market term. It describes extremely optimistic assumptions about an investment’s future.

You will hear investors say things like: “Imagine this stock reaches US$0.75!”

The problem is that imagination is not analysis.

Always connect your price expectations to earnings, valuation, industry conditions and realistic business assumptions.

78. Intrinsic Value

Intrinsic value is an estimate of what an investment is fundamentally worth based on its underlying business, assets, cash flows and future prospects.

The market price can be above or below this estimated value. However, intrinsic value is an estimate, not a guaranteed number.

79. Margin of Safety

A margin of safety means buying an investment at a price sufficiently below your estimate of its intrinsic value.

For example, if you estimate that a stock is worth US$0.15 but can buy it for US$0.11, you may have a margin of safety. The larger the gap, the more room you theoretically have for analytical error.

80. Asset Allocation

Asset allocation refers to how you distribute your money among different types of investments.

For example, your portfolio might contain equities, bonds, money-market investments and cash. Asset allocation should reflect your goals, risk tolerance and investment horizon.

81. Risk Tolerance

Risk tolerance describes how much investment loss or volatility you can reasonably withstand.

Someone who cannot sleep after seeing a 10% portfolio decline may need a different investment approach from someone comfortable with significant volatility.

Be honest about this. A strategy that looks excellent on paper is useless if you abandon it during a market decline.

82. Investment Horizon

Your investment horizon is the length of time you expect to remain invested.

A young investor saving for retirement may have decades. Someone saving for a major expense next year has a much shorter horizon.

Your time horizon should influence the types of investments you choose.

83. Total Return

Total return combines capital appreciation and investment income.

For a stock, this can include:

Share-price gain + dividends

For example, if your shares appreciate by 10% and you receive a 4% dividend yield, your total return could be approximately 14% before taxes, fees and other adjustments.

84. Reinvestment

Reinvestment means using investment income to buy additional assets.

For example, instead of spending your dividend, you could use it to purchase additional shares.

Over long periods, reinvestment can contribute significantly to portfolio growth because your investment base can compound.

85. Compound Growth

Compound growth occurs when your investment generates returns and those returns themselves contribute to future returns. This is why time can be one of the most powerful advantages an investor has.

You do not necessarily need to find the next 1,000% stock. Sometimes, consistent investing combined with patience can produce remarkable results.

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Why Understanding These Stock Market Terms Matters

Knowing these definitions is not about trying to sound intelligent at an investment meeting. Instead, it is about protecting your money.

Imagine your broker tells you: “This stock has strong EPS growth, a low P/E, improving ROE and a healthy dividend yield.”

If you understand those stock market terms, you can evaluate the statement. But if you do not, you may simply nod and buy the stock.

That is dangerous.

The same applies to corporate announcements.

When a company announces a rights issue, bonus issue, dividend or public offer, you need to understand what the announcement means before making a decision.

Your knowledge also becomes useful when monitoring your portfolio.

If you understand your CSCS Number, CHN, settlement cycle, dividend dates, trading orders and portfolio statements, you become less dependent on other people to explain your own investments. This puts you in a powerful position.

A Beginner’s Stock Market Vocabulary Checklist

If you are completely new to investing, do not try to memorise all 85 terms in one sitting.

Start with the terms that directly affect your money.

Understand:

Stock, share, stockbroker, NGX, SEC, CSCS, CSCS Number, CHN, portfolio, diversification, market capitalisation, share price, bid price, ask price, liquidity, market order, limit order, dividend, dividend yield, EPS, P/E ratio, fundamental analysis, capital gain, capital loss, bull market, bear market, volatility, rights issue, bonus issue, settlement and T+1.

Once these become familiar, move into valuation and technical-analysis terminology. This approach is much easier than trying to become a walking stock-market dictionary overnight.

Don’t Confuse a Cheap Stock With a Good Stock

One of the most common mistakes I see from beginners is judging a stock by its share price.

They say: “This stock is only US$0.015. It is cheaper than the one trading at US$0.38.”

Such a conclusion can be completely wrong.

A company with 10 billion shares trading at US$0.015 has a market capitalisation of US$150.95 million. Another company with 100 million shares trading at US$0.38 has a market capitalisation of US$37.74 million.

The US$0.38 stock is actually the smaller company by market capitalisation. Therefore, always look beyond the share price. 

Look at the following:

• Study the number of shares outstanding
• Examine earnings
• Look at cash flow
• Understand debt
• Compare valuation
• Study the company’s industry
• And finally consider the price

The Nigerian Stock Market Is Becoming More Accessible

There is a good reason beginners should learn these terms now. Access to Nigeria’s capital market has become increasingly digital.

NGX reported that domestic investors accounted for about 91% of total market transactions in May 2026. Total transactions reached approximately US$1.46 billion that month, representing 177.42% year-on-year growth.

The Nigerian market is not only for traditional institutional investors anymore. Retail investors are becoming a much more significant part of the ecosystem.

However, easier access creates another responsibility. You must become financially literate before becoming financially active.

Opening a brokerage account takes relatively little effort but understanding what you are buying takes more work.

Conclusion

The stock market can help you build wealth. However, it can also punish investors who buy assets they do not understand.

You don’t need to know all the stock market terms before buying your first stock. You do, however, need to understand the basics.

Know what a share represents, understand your broker, know your CSCS details and Clearing House Number and understand dividends.

You will also need to learn how valuation works, the difference between a market order and a limit order, what T+1 settlement means and why diversification matters.

Most importantly, learn how to separate a good company from a good investment at the current price. There are not always the same thing.

Nigeria’s equity market has experienced substantial growth and increased participation. Yet, even during strong market rallies, individual stocks can behave very differently.

Do not invest simply because someone on social media says: “This stock is going to fly!”

Before you invest in any stock, ask the following questions:

• What does the company do?
• How does this company make money?
• Are their profits growing?
• Does it generate cash?
• How much debt does does this company have?
• Does management allocate capital responsibly?
• What is the stock worth?
• What price am I paying?
• What could make my investment thesis wrong?

These questions will make you a far better investor than memorising 100 stock market terms. Of course, if you master the stock market terms I explained in this guide, you will have something even more valuable than vocabulary. You will have a foundation for making better investment decisions.