The Stock Market Tycoon board game uses a number of common stock market related expressions that might not be clear to children playing the game. Here is a list of the expressions and their meanings:

The closing bell – This is a Wall St stock market tradition where a bell is rung to signify the end of a days trading. The honor of ringing the bell is usually given to the management of a newly listed company.

Day trading – This term applies to people who trade on the stock market on a full time basis but do it with their own money.

Capital gains tax – This is a tax the government charges on the profit people make when they sell an asset, like shares or houses.

Stock options – A stock option is a contract that lets you buy shares at a pre-arranged price no matter what the current price.

Stock dividends – A share is ownership of a small part of a company. When that company makes a profit, the profit is often divided up between the owners. The payment is called a dividend.

A round lot – A nice round number like 100 shares is called a round lot. Some people might end up with “odd lots” when they receive shares from an inheritance like 100 shares divided between 3 people. With the invention of computer trading, round lots are no longer relevant.

EPA – The Environmental Protection Agency

Signing bonus – This is a one off cash payment to executives to get them to join a company.

Buying on the dip – This means you buy shares when they go down.

Taking a profit – This means selling shares after they have gone up.

Analysts and their expectations – Analysts are people that study companies for a living. Because they spend so much time studying companies, their expectations are supposed to be very accurate.

Whisper numbers – Whisper numbers are rumor numbers about the profit or loss a company is expecting. Some people think the rumors are started by executives in the company itself.

Resistance level – This is when the price of a share will not go above a certain point. It is caused by the owners of a stock who sell it when the price rises to that point. These people are sometimes taking a profit.

Support level – This is when the price of a share will not go below a certain point. It is caused buyers of a stock who buy it when the price gets down to that point. These people are sometimes buying on the dip.

Sector is consolidating – Sector consolidation happens when the number of companies in one sector, like banking or retail, reduces because they merge together or a bought out by another company in the same sector.

Stock split – When the value of a stock increases by so much that just one share is in the hundreds or thousands of dollars area a company might chose to split each share into two or more pieces. The total number of shares is doubled but there has been no change in the value of the company meaning that each new share is worth half what the old one was.

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