Stock Market For Beginners Terms With C

Stock Glossary - C

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Capital Gain

Capital gain is an economic concept that refers to the profit made on the sale of an asset that has increased in value over the holding period. Capital gain is generally calculated through taking the sale price of an asset and subtracting its base cost and any incurred expenses. Watch On YouTube

Ceiling

A word used to describe a horizontal upper resistance line. Also known as a resistance level. For a ceiling to be valid, the touches of two or more price high are required.

Circuit breaker

When the stock market index jumps or falls by more than a predetermined percentage, the Stock Exchange authorities implement a procedure to prevent excessive speculation. Trading is then postponed by the authorities for a period of time to allow the market to settle down.

Cash Ratio

A liquidity ratio that measures a company’s cash and marketable securities in relation to its liabilities.

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