Stock: A unit that constitutes the capital of a corporation. Shareholders who own stocks have rights and obligations proportional to their holdings.
Sell : Selling stocks.
Buy : Buying stocks.
Opening Price : The first trading price determined at the beginning of the trading day.
Closing Price : The last price determined at the close of the stock market, serving as the reference price for the next trading day.
Simultaneous Bidding : A system where buy and sell orders received during a certain time period (8:00 AM – 9:00 AM at opening, 2:50 PM – 3:00 PM at closing) are processed simultaneously to determine a single transaction price.
Market Capitalization : The total value of all listed stocks in the market, calculated as follows:
- Individual Stock Market Cap: Number of issued shares × Stock price
- Total Market Capitalization: The sum of all listed companies’ market capitalization based on closing prices.
Bid/Ask Price : The price set in advance for selling or buying a stock.
Upper Price Limit : The maximum price a stock can increase in one trading day.
Lower Price Limit : The minimum price a stock can decrease in one trading day.
Disclosure : A system where companies disclose business activities, financial conditions, and performance to investors to ensure fair pricing in the stock market.
Stop-Loss Sale : Selling stocks at a loss to prevent further declines when no short-term recovery is expected.
Circuit Breaker : A temporary halt in trading when the KOSPI or KOSDAQ index drops more than 10% from the previous day’s closing price for at least one minute.
Trading Suspension : A mandatory halt in stock trading when a listed company meets certain conditions.
Short Selling : A strategy where investors sell borrowed stocks, expecting a price decline, to buy them back later at a lower price.
Backdoor Listing : A process where a private company merges with a publicly listed company to bypass the standard IPO process and gain public listing.
Home Trading System (HTS) : A program that allows individual investors to trade stocks online without visiting a brokerage.
Deposit for Stock Trading : Cash deposited in a brokerage account, available for stock trading.
