Part of learning about investing involves understanding key investment terms. Common terms include: ​​Ask. The price that someone looking to sell stock wants to fetch. Bid. The price that someone is willing to pay for stock. Buy. To acquire shares and thereby take a position in a company. Sell. To get rid of shares whether because you’ve reached your goal or to prevent losses. Bull market. Market conditions in which investors expect prices to rise. Bear market. Market conditions in which investors expect prices to fall. Dividend. A portion of a company’s earnings paid to shareholders. Blue-chip stocks. Shares of large and well-recognized companies that have a long history of solid financial performance. Hedge fund: A hedge fund is composed of multiple investors' money, which is invested in different commodities in the hopes of making a profit. Hedge funds require relatively high minimums, so the investors are typically institutions or wealthy individuals. Earning per share. A company’s net profit divided by the number of outstanding common shares. Mutual fund. A collection of investments — stocks, bonds, commodities, and more — bundled together and held in common by a group of investors. For more, see our full list of investing terms everyone should know.