25 stock market terms you should know
25 stock market terms you should know
Understanding the stock market can be seen as a challenging task. Some confusing terms and concepts will frustrate you, but knowing these terms will surely help you.
These stock market terms will improve your stock market vocabulary and help you become a better and more successful investor.
So let’s understand these 25 essential stock market terms that every investor should know:
An annual report is an annual report that every company prepares to impress its company’s shareholders. The annual report contains a lot of information about a company, from cash flow to management strategy.
Several people read the annual report to look at the company’s solvency and assess their financial situation.
Arbitrage means buying something like foreign money in one place and selling it to another place where the price of the foreign money is higher than the place of purchase.
Example: If stocks are trading for $20 in one market and $21 in other markets, the trader must buy stocks for $20 in one market and sell them for $21 in the other market, taking the difference between the prices of both markets.
A decrease in average value means that the investor buys more shares when the price of a particular stock decreases. This reduces the average purchase price of your specific stock.
Several investors use this strategy when they believe that the consensus about a particular company is wrong, so they expect the stock price to rise again and generate profits.
It is a market in which investors talk about the stock market being in a downward trend, or it is a specific period in which the prices of several stocks are falling.
A broker is a person who buys and sells investments on your behalf and in return receives a certain amount of money, called a commission or fee.25 stock market terms you should know
A dividend means that when the company generates profits, a certain part of the profit is distributed quarterly or annually to the shareholders or the owners of the company’s shares. Not every company pays dividends, and if you’re into penny stocks, you probably won’t receive dividends.
Sensex is a number that indicates all relative share prices listed on the Bombay Stock Exchange.25 stock market terms you should know
The Nifty 50 Index, also called the National Stock Exchange of India, is the main Brad-based stock market index for the Indian stock market.
The Nifty 50 consists of 50 Indian company stocks across 12 different sectors and is one of two stock indices primarily used in the stock market.
The current trading prices of the stock contain information contained in an offer. Sometimes the listing is delayed by 20 minutes unless you are a stock broker working on an existing trading platform.25 stock market terms you should know
A stock market is a market where shares of a particular company are bought and sold. The stock market is a clear example of a stock market.
It is a market in which investors talk about the stock market being in an upward trend, or it is a specific period during which the prices of several stocks are rising.25 stock market terms you should know25 stock market terms you should know
An offer price is nothing more than the amount you are willing to pay for a particular stock.
Ask for price
The asking price is a specific price at which you want to sell a stock.
An order is the purpose of buying and selling stocks within a certain price range. For example, you have placed an order to purchase 200 shares of Company A at a maximum price of Rs 50 per share.
Trading volume is the number of shares traded on a particular day.25 stock market terms you should know
This simply means the value of a company on the stock market. This is the current value of all shares in a company combined.
Intraday trading is buying and selling your desired stocks on the same day so that before trading hours end, all your trading positions are closed on the same day.
A market order is an order to buy and sell stocks at the market price. Several investors do not opt for this order because the trading price in the market order remains volatile.
A daily order is an order that remains valid until the end of the trading day. If the order is not executed by market close,25 stock market terms you should know