Stock Market Terms

Stock Market Terms

Stock Market - A place where equity shares of companies are bought and sold by participants.

Shares - They are the individual units of ownership.

Buy - To buy shares

Sell  - To sell shares

Bull - A market condition where people are expecting prices to rise.

Bear - A market condition where people are expecting prices to fall.

Bid - Price that buyers are willing to pay for a stock.

Ask - Price that sellers are looking to get for their stock.

Bid-Ask Spread - Difference between what people want to spend and what people want to get.

Volatility -Rate at which price of the securities increases or decreases

Dividend - Part of earnings paid to shareholders.

Long- Betting on stock price to buy low and sell high.

Short - Betting on tock to sell high and buy low.

Broker - Person who gives you a platform to buy or sell stocks.

Exchange - Place where different types of investments are traded.

IPO - Initial public offering which happens when the privately traded company wants to become public by offering shares.

Portfolio - Collection of financial assets by an individual.

Sector - Group of companies with similar business activities.