The most important terms are given below:
A stock is a type of security that signifies ownership of a company and it is a representation of a claim on the part of the company’s earnings and assets.
A stock market is a place where shares are issued and traded through stock exchanges or over-the-counter markets. The stock market can be categorized into two parts, the Primary Market and the Secondary Market.
A stock exchange is an organization, which facilitates stockbrokers and traders for trading company stocks and other securities.
It is a decentralized market where securities not listed with an exchange are traded over the telephone, facsimile, or computer network. This type of trading is not done on a physical trading floor and there is no central exchange or meeting place for this.
It is another name of Stock Market.
The Primary Market:
The primary market deals with offering of new issues (Initial Public Offerings or IPOs).
The Secondary Market:
The secondary market deals with subsequent trading of the shares after the IPO is made.
Initial Public Offerings or the first sale of stock of a company to the public.
The word Sensex is derived from Sensitive Index. The Sensex is an index that describes the direction of the companies that are traded on the Bombay Stock Exchange (BSE).
NIFTY is the counterpart of Sensex on the National Stock Exchange (NSE).
The bull is a person who has an optimistic thinking and purchases shares in the belief that the market price of that particular company’s shares will rise. They try to profit from the rise in share prices.
The Bull Market is a financial market, which consists of a specific group of securities in which prices are going up or are expected to go up. A Bull Market is accompanied with growing investor confidence and it inspires the investors to buy stocks in anticipation of more capital gains.
The counterpart of Bull is the bear. If a person has a pessimistic thinking that stock prices are bound to go down, he is termed as a bear. Bears try to profit from a downfall in share prices.
It is a condition where the prices of securities are going down or are expected to go down. A Bear Market is always associated with far-reaching pessimism. Investors panicked by anticipation of further losses are provoked to sell stocks.
There are also some other terms that are used in the stock market like the following:
Stock Market Trading, Equity Trading, hedge fund, open outcry, commodity exchanges, auction, verbal bids, offers, bid price, bidders, askers, securities, buyer, seller, listing, brokerage firms, floor brokers, specialist, buying orders, selling orders, NASDAQ, New York Stock Exchange, NYSE, virtual exchange, market makers, price variation, securities firms, stock market crash, market trends, Primary Trends, bullish outlook, speculation, stock market bubble, overvaluation, short selling, bearish outlook, panic selling, Secondary Trends, Correction, Bear Market Rally, Secular Trends, Secular Bull Market, Secular Bear Market, squaring off, rally, crash, Bonus Shares, Dividend, 1 Year Target Estimate, Fee, Common Stocks, Deleted, Dual Listed, Long term gain, Short term gain, Maturity Date, Proprietary Trading, Principal Trading, Agency Trading, appreciation, asset allocation, asset valuation, Blue-Chip Stock, Commission Fee, Common Stock, Discount Broker, Earnings Per Share (EPS), Equity, Limit Order, margin, Market Capitalization, Price-Earning Ratio, P/E Ratio, Ticker, Amex (American Stock Exchange), derivatives, and growth stock etc.
Last Updated on : 26th August 2013