Share Market Jargon Buster: Key Terms Every Investor Should Know
The share market is a complex and dynamic environment filled with various terms and jargon that can be overwhelming for new investors. Understanding key terms are essential for navigating the share market and making informed decisions. To help you on your investment journey, here is a jargon buster of key terms every investor should know.
Stock: A stock represents ownership in a company. When you buy shares of a company, you become a partial owner and have a claim on the company’s assets and share market earnings while checking NSE Holidays 2024.
IPO: IPO stands for Initial Public Offering. It is the first sale of a company’s shares to the public. Companies go public to raise capital and allow investors to buy and sell their shares on a stock exchange.
Bull Market: A bull market refers to a period when share prices are rising, and investor confidence is high. It is characterized by optimism, increasing demand, and positive market sentiment as you check NSE Holidays 2024.
Bear Market: A bear market is the opposite of a bull market. It refers to a period when share prices are falling, and investor confidence is low. It is characterized by pessimism, decreasing demand, and negative share market sentiment.
Blue Chip Stocks: Blue chip stocks are shares of well-established, financially stable companies with a history of reliable performance. These companies are typically leaders in their industries and are known for their stability and long-term growth potential with NSE Holidays 2024.
Dividend: A dividend is a portion of a company’s earnings that is distributed to shareholders. Dividends are usually paid in cash on a regular basis, such as quarterly or annually. They are a way for companies to share profits with their shareholders.
Market Order: A market order is an instruction to buy or sell a security at the best available price in the share market. It guarantees execution but does not guarantee a specific price.
Limit Order: A limit order is an instruction to buy or sell a security at a specific price or better. It allows investors to control the price at which they buy or sell shares but does not guarantee execution if the specified price is not reached with NSE Holidays 2024.
P/E Ratio: The price-to-earnings (P/E) ratio is a valuation metric that compares a company’s share price to its earnings per share (EPS). It is used to assess the relative value of a company’s stock and determine if it is overvalued or undervalued.
Volatility: Volatility refers to the rate at which the price of a security or the overall share market fluctuates. High volatility indicates sharp price movements, while low volatility indicates stability. Volatile markets can present both opportunities and risks for investors with the help of knowing NSE Holidays 2024.
Portfolio: A portfolio is a collection of investments, such as stocks, bonds, and other securities, held by an individual or an institution. Diversifying your portfolio by investing in a variety of assets can help spread risk and enhance potential returns.
ETF: ETF stands for Exchange-Traded Fund. It is a type of investment fund that holds a basket of securities, such as stocks or bonds. ETFs are traded on stock exchanges like individual stocks and provide investors with exposure to a diversified portfolio of assets with NSE Holidays 2024.