Market Hours, Tickers, and Basic Terms 📖
Before you start investing, you need to speak the language. Here's your essential glossary.
Market Hours
U.S. stock markets are open:
Regular Hours: 9:30 AM - 4:00 PM Eastern Time, Monday-Friday
Pre-Market: 4:00 AM - 9:30 AM ET (limited trading)
After-Hours: 4:00 PM - 8:00 PM ET (limited trading)
Closed: Weekends and major holidays (New Year's, MLK Day, Presidents Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas)
Time Zone Tip
If you're on the West Coast, markets open at 6:30 AM and close at 1:00 PM Pacific. Early birds get the trades!
Ticker Symbols
Every publicly traded company has a ticker symbol—a short code used to identify it.
| Company | Ticker |
|---|---|
| Apple | AAPL |
| Microsoft | MSFT |
| Amazon | AMZN |
| Google (Alphabet) | GOOGL |
| Tesla | TSLA |
| Walmart | WMT |
| Coca-Cola | KO |
Tips:
- NYSE tickers are usually 1-3 letters
- NASDAQ tickers are usually 4 letters
- Some are intuitive (MSFT = Microsoft), others aren't (KO = Coca-Cola)
Essential Terms
Price Terms
| Term | Meaning |
|---|---|
| Bid | Highest price a buyer is willing to pay |
| Ask | Lowest price a seller is willing to accept |
| Spread | Difference between bid and ask |
| Last | Price of the most recent trade |
| Open | First trade price of the day |
| Close | Last trade price of the day |
| High/Low | Highest/lowest prices of the day |
The Bid-Ask Spread
Imagine selling your car. You want $20,000 (your "ask"). A buyer offers $18,000 (their "bid"). The $2,000 gap is the "spread."
In stocks, the spread is usually tiny—often just a penny or two for popular stocks.
Order Types
| Order Type | What It Does |
|---|---|
| Market Order | Buy/sell immediately at current price |
| Limit Order | Buy/sell only at your specified price or better |
| Stop Order | Triggers a market order when price hits a level |
| Stop-Limit | Triggers a limit order when price hits a level |
For beginners: Market orders are simplest. Limit orders give you more control.
Company Metrics
| Term | Meaning |
|---|---|
| Market Cap | Total value of all shares (price × shares outstanding) |
| Volume | Number of shares traded in a period |
| Dividend | Cash payment to shareholders |
| EPS | Earnings Per Share (profit ÷ shares) |
| P/E Ratio | Price ÷ Earnings (valuation measure) |
Key Takeaways
- Markets are open 9:30 AM - 4:00 PM ET, Monday-Friday
- Ticker symbols are short codes for companies (AAPL, MSFT, etc.)
- Bid = buyer's price, Ask = seller's price, Spread = the gap
- Market orders execute immediately, limit orders wait for your price
Market Terms
| Term | Meaning |
|---|---|
| Bull Market | Rising prices, optimism (bulls charge up) |
| Bear Market | Falling prices, pessimism (bears swipe down) |
| Correction | 10%+ drop from recent high |
| Crash | Sudden, severe drop (20%+ quickly) |
| Rally | Sustained price increase |
| Volatility | How much prices swing up and down |
Position Terms
| Term | Meaning |
|---|---|
| Long | You own the stock (betting it goes up) |
| Short | You borrowed and sold stock (betting it goes down) |
| Position | Your investment in a particular stock |
| Portfolio | All your investments combined |
Beginner Mistakes
- Using market orders for thinly traded stocks (you might get a bad price)
- Not knowing what you're buying (always look up the ticker first!)
- Trading during pre-market/after-hours (wider spreads, less liquidity)
Quick Reference Card
Save this for later:
Market Hours: 9:30 AM - 4:00 PM ET (Mon-Fri)
Market Order: Buy/sell now at current price
Limit Order: Buy/sell at my price or better
Market Cap: Company's total value
P/E Ratio: Price ÷ Earnings (lower often = cheaper)
Bull = Up | Bear = Down 📉
Next up: Who are the other players in the market? Let's meet retail and institutional investors.