Basic Operations Terms in Stock Market You Should Know are provided below and this block will be especially beneficial for the students who are starting their first-ever investment in the stock market. When you are starting a new journey as an investor then you must be taking into account the basic operation that you will have to go through in this journey. You can check out the basic terms that all of the other investors will be using in the stock exchange or during their investments. Make sure that you have proper knowledge related to the stock market and trading before your first investment in any company.
List of Basic Operations Terms in Stock Market
There are a lot of different types of basic operation terms available when you are stepping your foot in the stock market and there are a lot of things that you need to learn in order to start your first investment because it is kind of complicated to start your investment when you do not have adequate education related to the matter. You can check out the list of basic operation terms available in the stock market from the pointers given below and then you can start your first ever investment from the get-go.
A share is a unit of ownership in a particular company which is provided to the shareholder.
- Demat Account
A Demat account is an electronic account which will hold your financial assets including shares and mutual funds.
- Annual Report
The annual report is an early report that the company wishes to make to impress the shareholders of the company and it consists of a lot of information about the company including the cash flow and also the management strategy.
Arbitrage means purchasing something including foreign money from one place and selling it to another place with the price of the foreign money being high.
- Averaging Down
Averaging Down means the investor will buy more stock when the price of the particular stock is down.
- Bear Market
A bear market is a market where the investor will talk about the stock market performing in a downward trend or when the price of multiple stocks is falling.
A broker is a person who will buy and sell investments on your behalf.
A dividend means when the company will earn profit and a particular portion of this earning will be distributed to the shareholders or the people who have bought the company’s stock on a quarterly or annually basis.
Sensex is the figure which will indicate the share prices which are listed on the Bombay Stock exchange.
Nifty, also known as the National Stock Exchange of India, is the primary stock market index for the equity market of India.
The Quote is the latest trading prices of a particular stock.
- Share Market
A share market is a market in which shares are sold or bought by individuals or investors.
- Bull Market
A bull market is a market when the investors are talking about the stock market performing on an upward train or when the prices of multiple stocks are increasing.
- Bid Price
A bid price is a price which you are willing to pay for a particular share.
- Ask Price
The Ask Price is the price which is asked by a company to sell a share.
Order means the purpose of buying and selling shares at a given range of prices.
- Trading Volume
Trading Volume means the number of shares that are traded on a particular day.
- Market Capitalisation
Market Capitalisation is the value of a company according to the stock market.
- Intra-Day Trading
Intra-Day trading means buying and selling the stocks on the same day before the trading hours are over.
- Market Order
A market order is the order to buy and sell shares at the market price.
- Day Order
A day order is an order that remains good till the end of the trading day.
- Limit Order
A limit order is the order to buy shares below a fixed price and sell shares above the fixed price.
The portfolio is the collection of all of the investments that a particular investor has made.
Liquidity means how fast the shares can be sold off.
IPO means when a private company is issuing its share to the public and becoming a public company.
- Secondary Sharing
Secondary Sharing means offering more stocks and gaining more money from the public.
- Going Long
Going Long means batting on a price of a stock that will increase so that you can buy at a low price and then sell at a high price.
Investors must understand that the stock market is also subjected to the risk of wealth and the money that you have invested in a particular company can go down when the shares of that particular company are going down. Entri provides stock market crash courses for the investors who are just starting their investments in particular companies or want to explore the stock exchange world so that they can make it their career. You can check out the video lessons and mock test series available on our platform that will provide you with a particular insight into this stock exchange world and will help you to do good investments in future. Enrol now!