Key terms of Stock market

February 11, 2021
Alok Kumar
Key terms of Stock market

EaseMytrade invested a lot of time finding these key terms that every investor or Trader must know if they want to succeed in the field of the stock market. The basic knowledge of these terms is important for both Beginner or pro Traders who invest in Stock market.

So today we are going to help you understand these key terms that you need to Get your Own financial freedom.

Key terms of Stock market

Stock (Stock market)

A share represents part ownership of a company by which you can also claim on company earnings. But the share value fluctuates up or down depending on the market scenarios and you can sell or buy them on exchanges.

Intraday (Stock market)

Intraday trading is the trading in which you purchase stock, not for long-term investment but to book a profit by harnessing the movement in the market. In intraday, the share is bought and sold on the same day.

Delivery (Stock market)

When you buy and hold a stock for more than 24 h (one day). Then, it is known as Delivery.

Bull market (Stock market)

The bull market is the market when the stock prices keep rising and the public also feels that the stock price will keep rising then this scenario is known as the Bull market.

Bear market (Stock market)

A bear market is a market when stock prices keep on falling and the public also gets fearful full and starts selling Stock then it is said to be a Bear market.

Key terms of Stock market

Key terms of Stock market

IPO

IPO(INITIAL PUBLIC OFFERING) when any Pvt. ltd company offers its stock to the citizens of the country then it is known as IPO.

Blue-chip stocks (Stock market)

Blue-chip stocks are the stocks of reputed and financially strong companies with a Tremendous track record of consistent growth in past years these stocks are less risky compared to mid-cap and small-cap Stocks.

Stock Exchange

Stock Exchange is a Digital market where one can buy or sell Stock. Stock exchange works as a bridge between Stock buyer and seller the two biggest Stock Exchange of India is BSE, NSE exchange.

Trading volume (Stock market)

The total number of stocks traded in a particular period is known as Trading volume. When securities get to trade more actively then it is said to be high trade volume. Higher the volume higher the Liquidity.

Liquidity (Stock market)

Liquidity means to say that how easily one can buy or sell stock without affecting The price of the stock. High liquidity when shares can easily buy or sell. Low liquidity means when buyers and sellers are difficult to find.

Demat account

Demat account is similar to the normal bank accounts, but it is digital and to buy or sell Stocks you need a Demat account.

Market capitalization

It is referred to as the total value of a particular company share one can calculate it by multiplying the total number of shares by the current stock price of the company. Furthermore, according to that companies are categorized into small medium, and large-cap companies.

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