Understanding key stock market terms is crucial for investors to make informed decisions and navigate the complexities of financial markets.
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A share in the ownership of a company, representing a claim on part of the company’s assets and earnings.
A payment made by a corporation to its shareholders, usually in the form of cash or additional shares, representing a portion of the company’s profits.
A market characterized by rising prices and investor confidence. Investors in a bull market are optimistic about the future and expect continued price increases.
A market characterized by falling prices and pessimism among investors. In a bear market, investors expect prices to continue declining.
A statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. Common indices include the Bse Sensex, Nifty 50, etc.
The collection of financial assets (stocks, bonds, etc.) held by an investor.
Shares of large, well-established, and financially stable companies with a history of stable performance.
A measure of the degree of variation of a trading price series over time. Higher volatility often indicates greater risk.
The total value of a company’s outstanding shares of stock, calculated by multiplying the share price by the number of outstanding shares.
A valuation ratio calculated by dividing the market price per share by the earnings per share. It helps investors assess the relative value of a stock.
Spreading investments across different asset classes or securities to reduce risk.
The ease with which an asset can be bought or sold in the market without affecting its price. Stocks with high liquidity are easily traded.
An order to buy or sell a security immediately at the best available current price
An order to buy or sell a security at a specific price or better.
Optimistic or positive about the direction of the market or a particular investment.
Pessimistic or negative about the direction of the market or a particular investment