20+
20+STOCK
20+
20+ MARKET
20+
TERMS:
EVERY INVESTOR
MUST KNOW
Rahul Saxena
STOCK:
A Share is the ownership of a company,
representing a claim on part of the
company’s assets and earnings.
DIVIDEND:
A portion of a company’s earnings is
distributed to its shareholders, usually
in the form of cash or additional shares.
BULL MARKET:
A market characterized by rising stock
prices and positive investor sentiment.
Rahul Saxena
BEAR MARKET:
A market characterized by falling stock
prices and negative investor sentiment
(fear).
INDEX:
A measurement of the performance of a
group of stocks, representing a specific
market or sector, often used as a
benchmark.
VOLATILITY:
The degree of variation of a trading
prices series over time, indicating the
level of risk and uncertainty.
Rahul Saxena
PORTFOLIO:
A collection of financial assets such as
stocks, bonds, and other investments
held by an individual or institution.
MARKET CAPITALIZATION:
The total value of a company’s
outstanding shares of stock, calculated
by multiplying the share price by the
number of shares.
IPO:
INITIAL PUBLIC OFFERING, The first sale
of a company’s stock to the public,
allowing it to raise funds by issuing
shares.
Rahul Saxena
BLUE CHIP STOCKS:
Shares of large, well-established, and
financially stable companies with a
history of reliable performance.
DIVERSIFICATION:
Spreading investments across different
assets or assets classes to reduce risk.
BROKER:
A person or firm that facilitates the
buying and selling of financial securities
on behalf of investors.
Rahul Saxena
MARKET ORDER:
An order to buy/sell a security
immediately at the best available price.
LIMIT ORDER:
An order to buy/sell a security at a
specified price or better.
ETF:
Exchange Traded Fund. A type of
investment fund and exchange-traded
product, representing a basket of assets
like stocks or bonds.
Rahul Saxena
ARBITRAGE:
Arbitrage means purchasing something
like foreign money from one place and
selling it to another place where the
price of the foreign money is higher than
the buying place.
SENSEX:
Sensex is a figure that indicates all the
relative share prices that are listed on
the Bombay Stock Exchange.
NIFTY:
Nifty 50 Index, called the National Stock
Exchange of India, is the primary and
brad based stock market index for the
equity market of India.
Rahul Saxena
LIQUIDITY:
The ease with which an asset can be
bought or sold in the market without
affecting its price.
TRADING VOLUME:
Means the number of shares that are
traded on a particular day.
MARKET CORRECTION:
A decline of at least 10% in the price of a
financial instrument, often used to
describe a temporary reversal in an
upwards trend.
Rahul Saxena
P/E RATIO:
Valuation ratio calculated by dividing
the market price per share by the
earnings per share, indicating how much
investors are willing to pay for each
rupee of earnings.
AVERAGING DOWN:
Means the investor buys more stock
when the price of a particular stock goes
down. This decrease the average
purchase price of your specific stock.
Rahul Saxena
QUOTE:
The Stock’s latest trading prices contain
information that is given in a quote.
Sometimes, the quote is delayed by 20
minutes unless you’re an actual
stockbroker working in an existing
trading platform.
Rahul Saxena
Thank You for
Reading!!
Rahul Saxena
Follow for more
such content.
Like Comment Share
Save it for Later
