Do you know your bear markets from your bull markets? Test your knowledge of stock market terminology with these common terms: 1. Bull Market: This term refers to a period of rising stock prices, typically characterized by investor confidence and optimism about the future of the economy. 2. Bear Market: In contrast, a bear market is a period of falling stock prices, usually accompanied by pessimism and fear among investors. 3. Dividend: This is a payment made by a company to its shareholders out of its profits, usually on a quarterly basis. 4. IPO: Short for Initial Public Offering, this is the first sale of a company's stock to the public, allowing investors to buy shares and become part owners of the company. 5. Blue Chip Stock: These are shares of large, well-established companies known for their stability, profitability, and solid track record. 6. Market Cap: Market capitalization is the total value of a company's outstanding shares of stock, calculated by multiplying the current stock price by the total number of shares. 7. P/E Ratio: The Price-to-Earnings ratio is a key metric used to evaluate a company's stock price relative to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings. Now that you have a better understanding of these stock market terms, you can navigate the world of finance with confidence!