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Shares Made Simple: A beginner's guide to the stock market by Rodney Hobson

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Chapter 19: Jargon Busting

Every way of life has its own language and the stock market is no exception. I have tried in this book to keep explanations as simple as possible but there are some often used expressions that are worth learning about.

In particular, you will see name tags attached to shares:

  • Blue chips. The largest companies on the stock market. The term is often used about any company in the FTSE 100.
  • Recovery stocks. Shares that have taken a battering but could be turning the corner, perhaps because of new management or improving markets.
  • Cyclical stocks. Companies that see their fortunes rise and fall with cycles in the economy. As the economy slows, theirs are the products that consumers can most easily manage without. ...

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