{"id":58,"date":"2023-07-18T06:51:09","date_gmt":"2023-07-18T06:51:09","guid":{"rendered":"https:\/\/equitystreet.in\/index.php\/2023\/07\/18\/eu-set-to-launch-formal-probe-into-nzivias-54bn-takeover-of-arm\/"},"modified":"2023-09-05T11:53:08","modified_gmt":"2023-09-05T11:53:08","slug":"eu-set-to-launch-formal-probe-into-nzivias-54bn-takeover-of-arm","status":"publish","type":"post","link":"https:\/\/equitystreet.in\/index.php\/2023\/07\/18\/eu-set-to-launch-formal-probe-into-nzivias-54bn-takeover-of-arm\/","title":{"rendered":"Jargons in Stock Market"},"content":{"rendered":"

The world of the share market (often called the stock market) is filled with its own set of jargons and terms. Here’s a list of some commonly used terms and their explanations:<\/p>\n

1.Bull Market:<\/b><\/strong><\/h4>\n

A market characterized by rising share prices. It typically indicates optimism about the economy and a sustained period of profitability.<\/p>\n\n\n

\"\"<\/figure>\n\n\n\n

2. Bear Market:<\/strong><\/strong><\/p>\n\n\n\n

Opposite of a bull market, it’s a market where share prices are falling, leading to a widespread pessimism.<\/p>\n\n\n\n

3. Blue Chip Stocks:<\/strong><\/strong><\/p>\n\n\n\n

Shares of well-established and financially stable companies that have a history of producing reliable returns.<\/p>\n\n\n\n

4. Dividend:<\/strong><\/strong><\/p>\n\n\n\n

A portion of a company’s earnings distributed to shareholders, typically in the form of cash or additional shares.<\/p>\n\n\n\n

5. Initial Public Offering (IPO):<\/strong><\/strong><\/p>\n\n\n\n

The first sale of stock by a company to the public. Before an IPO, a company is considered private.<\/p>\n\n\n\n

6. Portfolio:<\/strong><\/strong><\/p>\n\n\n\n

A collection of financial assets such as stocks, bonds, and cash held by an investor or financial institution.<\/p>\n\n\n\n

7. Bid:<\/strong><\/strong><\/p>\n\n\n\n

The price a buyer is willing to pay for a security.<\/p>\n\n\n\n

8. Ask (or Offer):<\/strong><\/strong><\/p>\n\n\n\n

The price a seller is willing to sell a security for.<\/p>\n\n\n\n

9. Spread:<\/strong><\/strong><\/p>\n\n\n\n

The difference between the bid and ask prices.<\/p>\n\n\n\n

10. Market Capitalization (Market Cap):<\/strong><\/strong><\/p>\n\n\n\n

The total market value of a company’s outstanding shares of stock. Calculated as: Market Cap = Stock Price x Number of Outstanding Shares<\/strong>.<\/p>\n\n\n\n

11. Limit Order:<\/strong><\/strong><\/p>\n\n\n\n

An order to buy or sell a security at a specific price or better.<\/p>\n\n\n\n

12. Stop-Loss Order:<\/strong><\/strong><\/p>\n\n\n\n

An order placed with a broker to buy or sell once the stock reaches a certain price, helping limit an investor’s loss.<\/p>\n\n\n\n

13. Broker:<\/strong><\/strong><\/p>\n\n\n\n

A person or firm that’s licensed to buy and sell securities on behalf of its clients.<\/p>\n\n\n\n

14. Index:<\/strong><\/strong><\/p>\n\n\n\n

A statistical measure of change in the stock market, representing a portfolio of stocks, like the BSE Sensex or NSE Nifty in India.<\/p>\n\n\n\n

15. Short Selling:<\/strong><\/strong><\/p>\n\n\n\n

Selling a security you don’t own, with the belief that its price will drop, allowing you to buy it back at a lower price for a profit.<\/p>\n\n\n\n

16. P\/E Ratio (Price-to-Earnings Ratio):<\/strong><\/strong><\/p>\n\n\n\n

A valuation ratio, calculated as: P\/E Ratio = Market Price per Share \/ Earnings per Share (EPS)<\/strong>. It indicates the rupee amount an investor expects to invest in a company to receive one rupee of that company\u2019s earnings.<\/p>\n\n\n\n

17. Yield:<\/strong><\/strong><\/p>\n\n\n\n

Often refers to the dividend yield, which is the annual dividend income an investor can expect from an investment, expressed as a percentage of the stock’s price.<\/p>\n\n\n\n

18. Volatility:<\/strong><\/strong><\/p>\n\n\n\n

A measure of the risk potential of a stock or an index. High volatility indicates the price moves dramatically within short periods, and low volatility indicates a stable stock price.<\/p>\n\n\n\n

19. Circuit Breaker:<\/strong><\/strong><\/p>\n\n\n\n

A system to halt trading after extreme price moves to prevent panic-selling.<\/p>\n\n\n\n

20. Book Value:<\/strong><\/strong><\/p>\n\n\n\n

The value of an asset on a company’s balance sheet, calculated by subtracting liabilities from the total assets.<\/p>\n\n\n\n

21. Face Value:<\/strong><\/strong><\/p>\n\n\n\n

The nominal or dollar value of a security stated by the issuer. For shares, it’s the original cost of the stock shown on the certificate.<\/p>\n\n\n\n

22. Leverage:<\/strong><\/strong><\/p>\n\n\n\n

Using borrowed money to amplify potential returns. However, it can also increase potential losses.<\/p>\n\n\n\n

23. Margin Call:<\/strong><\/strong><\/p>\n\n\n\n

A demand from a broker to deposit more money or securities to cover potential losses in a margin account.<\/p>\n\n\n\n

24. Rally:<\/strong><\/strong><\/p>\n\n\n\n

A sustained period of increasing stock prices.<\/p>\n\n\n\n

25. Correction:<\/strong><\/strong><\/p>\n\n\n\n

A reverse movement, usually negative, of at least 10% in a stock, bond, commodity, or index to adjust for overvaluation.<\/p>\n","protected":false},"excerpt":{"rendered":"

The world of the share market (often called the stock market) is filled with its own set of jargons and terms. Here’s a list of some commonly used terms and their explanations: 1.Bull Market: A market characterized by rising share prices. It typically indicates optimism about the economy and a sustained period of profitability. 2. […]<\/p>\n","protected":false},"author":1,"featured_media":102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,24],"tags":[11,13,14,15,17],"class_list":["post-58","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","category-trading","tag-bitcoin","tag-e-commerce","tag-economy","tag-fed-tapering","tag-obligation"],"_links":{"self":[{"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/posts\/58"}],"collection":[{"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/comments?post=58"}],"version-history":[{"count":1,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/posts\/58\/revisions"}],"predecessor-version":[{"id":149,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/posts\/58\/revisions\/149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/media\/102"}],"wp:attachment":[{"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/media?parent=58"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/categories?post=58"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitystreet.in\/index.php\/wp-json\/wp\/v2\/tags?post=58"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}