Stock Market Vocabulary and Important Words

Stock Market Series – Part 3: Vocabulary

Here is the Stock Market Terminologies and important words you need yo keep in mind when rooting your interest in stock market. Are you thinking of comprehending the whole idea related to stock marketing? Have you ever read some topics related to stock marketing and got confused regarding certain words? It is important to have a complete idea regarding the terminologies or the vocabulary system in stock marketing.

Those who are interested in the stock market should know the basic terminologies related to the field. Basic knowledge is essential for anyone who has to make the right decisions in the field. Equip yourself to deal with the tools and technicalities before investing in the trade market. Investing in the trade market requires more excellence and wisdom. Learn the basic terminologies related to the stock market.

Basic Terminologies for Stock Market Trading

• Beta: Measurement of relationship between the stock price of any stock and market movement.
• Agent: A brokerage firm is said to be an agent when it acts on account of the customer in buying or buying shares.
• Ask/Offer: The lowest price an owner is amenable to sell the stocks.
• Assets: Everything the company owns in its name, including the resources, facilities, property, technology, etc. which shows the entire assets of the company.
• At the money: A location at which claims hit price is equal to the price of the underlying bonds.
• Bear Market: A market in which stock assessments are befalling consistently.
• Bid: It is the most crucial price a consumer is compliant to return for a stock.
• Blue Chip Stock: Funds of high, well-established, and financially sound companies that hold a record of consistently rising rates of paying dividends over decades to its stockholders. Blue-chip funds typically have a fair capitalization of thousands of crores.
• Board Lot: A regular trading unit as set by the appropriate exchange board.
• Bonds: It is a promissory note issued by companies or the government to its buyers. It speaks about the specified amount held for a specified period by the buyer.
• Book: An automatic work of handling all the pending buy and sell orders of distinct stocks.
• Broker/Brokerage Firm: A listed defenses firm is called a broker/brokerage firm.
• Bull Market: A store in which the stock price is increasing consistently.
• Business Day: Excluding public holidays Monday to Friday.
• Call Option: An alternative that is given to investors the right but not a debt to buy a selective stock at a particularized price within a detailed period.
• Close Price: The final rate at which the stock is traded on a given appropriate trading day.
• Commodities: Product used for business that is traded on a separate, approved commodities platform.
• Convertible Securities: A contract (bonds, debentures, preferred stocks) by an issuer that can be converted into other agreements of that issuer are known as equivalent securities.
• Debentures: A type of debt apparatus that is not secured by tangible assets or security.
• Defensive Stock: A stock that provides constant dividends and stable earnings even in periods of economic downturn.
• Delta: The ratio that compares the change in the price of the asset to the corresponding price of a derivative. Seldom referred to as the hedge rate. It has a series from 0 to 1.
• Derivatives: A record whose value is derived from one or more underlying assets.
• Diversification: Conquering the loan risk by purchasing shares of several businesses working in diverse divisions.
• Dividend: A part of the company’s wages decided to pay to its shareholders in return for their investments.
• Equity: Common and preferred stocks, which represent shares in the ownership of a company.
• Face value: It is the money category or the value of the property the owner of the private contract going to earn from the issuer of the contract at the point of development. It is also appreciated as par worth.
• Hedge: A policy or an effort in reducing the risk of the adverse price of assets.
• Income Stock: A security that has a solid record of dividend payments and offers dividends higher than the common stocks.
• Index: A analytical measurement of the difference in the market or bond market.
• Initial Public Offering (IPO): A company’s primary concern of parts to the global populace. IPOs are issued by poorer, fresher corporations soliciting supplies for development and extension, but large groups also follow this to become above-board traded companies.
• Internet Trading: Internet Trading is a program with the Internet as a tool. Internet trading accomplishment takes place within an order routing policy, which will conquer traders’ systems to the market speculation mode.
• Limit Order: A request to acquire or market apart at a particularized value.

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Just keep an eye on the above-mentioned words as a beginning guide to the terminology of stock marketing. Don’t let the new vocab limit your understanding of the field. But this isn’t all. You can get to know more words related to the field, with the help of the complete stock marketing study guide. Click here to know more about the stock marketing study notes and trading secrets.