In order to be a successful stock investor, you need to know all about the market – beginning with basic terminology.
Some basic Stock Market Terms
We all come across these terms every now and then, but making sense of them can be really tough if you don’t really know what each term implies. Even if you are not actively involved with trading, these basic stock market terms will help you get a better understanding of all those business channels which monitor the day’s trading activities. Share market trading isn’t so tough to grasp, it only takes some learning and t skilled techniques to make money out of.
Here are some basic stock market terms:
– Stock : This an entity of business which is the amount of money invested by promoters in a particular business.
– Share: Every stock is further subdivided into shares. Shareholders can dispose of whichever share they hold in various stock exchanges.
-Equity: The value of what an owner’s interest amounts to in a business is what is called as am equity.
– Market: An arrangement where buyers meet sellers and trade of goods occurs.
-Bull: This is an investor who has purchased those shares which will increase when the market does well. Bulls are content when the market does well.
-Bear: A bear is an investor who is just the opposite of the bull. Bears are content when the market doesn’t perform well.
-Investment: When one puts in funds into an asset expecting good returns that fund is said to be an investment.
– Trade: The selling and buying of goods is what defines trade.
Derivatives: It is a contract/agreement which exist between 2 parties. The instrument of finance has a certain value which is associated with its future purchase price.
Stockbroker: This professional is the person who makes sales and purchases via firms on part of the traders.
Intraday: The act of selling and buying in one day of trade is called as Intraday.
These basic stock market terms are used quite often and will help other non-traders to gain insight into how the stock market works and what it really is about. With the above terms, one gets clarity about these common terms of the stock market trade.
1) Stocks are the basic units of business.
2) If the market does well, the bulls rejoice; if not then the bears do.
3) If one manages a purchase and a sale in a single day, it is called as Intraday.