This is a continuation of my last video: “Stock and Cryptocurrency Investing Phrases Defined” https://www.youtube.com/watch?v=cFDdL…
In this video, I give you the quick definitions for the following:
Meme stocks: A meme stock is any stock that experiences excessive trading volume from retail investors who have targeted it on social media, especially the Reddit subgroup WallStreetBets. Examples are AMC, GameStop, BlackBerry, and Bed Bath and Beyond.
Retail investors: are simply regular people who are non-professional investors. Retail investors usually invest less than institutional investors and hedge funds. Examples are you and me.
Apes: dedicated meme stock investors. The term originated from a meme based on the movie “Planet of the Apes”.
#NotLeaving: popular hashtag with meme stock investors and the ape community. This comes from the movie “the Wolf of Wall Street”
Naked shorting: the illegal practice of short selling shares that have not been actually confirmed to be available or even exist. Normally, traders must actually borrow a stock or determine that it can be borrowed before they short sell it.
Brokerage companies: A brokerage company primarily acts as a middleman to connect buyers, like retail investors, and sellers, market makers, to facilitate a transaction. Examples are Robinhood, Webull, Fidelity, and Charles Schwab.
Market Makers: aka brokerage houses. They buy and hold large quantities of shares to sell to the market. Examples are Citadel, Goldman Sachs, Credit Suisse Securities, and Susquehanna Capital Group.
Hedge fund: a limited partnership of investors that uses pooled investment funds to utilize higher risk trading methods in hopes of making large profits. They typically require a large minimum investment to join a hedge fund. Examples are Bridgewater Associates, Renaissance Technologies, Tiger Management, and Two Sigma.
Blue-chip stocks: refers to established companies that have a long history of good earnings, stable dividend payments, and a solid balance sheet. This term is thought to have come from blue gambling chips which are generally the highest denomination of chips used in casinos.
Commodities: raw material that can be bought and sold. Examples of commodities include agricultural (wheat, soybeans), metals (gold, silver), and energy (oil).
Volatility: refers to the price movements of a stock or the stock market as a whole. Highly volatile stocks or cryptocurrencies are those with extreme shifts up and down within short periods of time.
Hopefully you have a better understanding of these popular terms and phrases. Don’t forget to like this post and leave me a comment.