There are a few phrases that every equities stock market investor should be aware of. Beginners, however, don’t always possess this information. In this blog, we will discuss some of the investment jargon.
The commonly used equities and share trading market terms are as follows:
- Stock, often known as a share or equity, is the basic ownership unit of a corporation.
- The stock market is where the shares of publicly traded corporations are sold and bought on exchanges.
- Volatility, in a nutshell, is the variation of a stock or the market as a whole. The standard deviation of returns, which measures the degree of change in a trading price series over time, is known as volatility.
- Liquidity refers to the ease with which you can acquire, trade, and turn stock into cash.
- The dividend is part of an organization’s gains, generally distributed to company shareholders.
- A Bull Market is a market situation that indicates stock prices might see a rise.
- A Bear Market is a market situation in which investors expect stock prices to sink.
- Averaging down denotes the investor buying more stock when the cost of a particular stock sees a decline.
- Sensex is a figure that signifies all the comparative share prices listed on the Bombay Stock Exchange.
- The Nifty 50 Index, or the National Stock Exchange of India, is the primary and broad-based share market index for the equity market of India.
- A bid price is a price you desire to pay for a particular stock.
- Ask price refers to the specific amount which you are expecting to get upon selling a share.
- Trading volume represents the number of shares traded on a respective day.
- IPO implies a private company is turning into a public company by allocating its stakes to the masses for the first time.
- A broker is a person that purchases and sells acquisitions on your behalf and receives a commission or fee in return.
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