realanubhav
KF Rookie
Here are some important stock terms understanding these terms can help you navigate the world of stocks more effectively.
Stock: A share in the ownership of a company.
Ticker Symbol: A unique combination of letters representing a company's stock on the stock exchange.
Market Capitalization: The total value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares.
Dividend: A portion of a company's earnings distributed to shareholders on a regular basis.
Earnings Per Share (EPS): A company's profit divided by its number of outstanding shares, indicating its profitability on a per-share basis.
P/E Ratio: Price-to-Earnings ratio, which compares the stock price to its earnings per share, helping assess valuation.
Bull Market: A market characterized by rising stock prices and optimism.
Bear Market: A market characterized by falling stock prices and pessimism.
Blue Chip Stocks: Stocks of large, well-established, financially stable companies with a history of reliable performance.
Volatility: The degree of variation in a stock's price over time, indicating risk.
Liquidity: The ease of buying or selling a stock without causing significant price changes.
Index: A collection of stocks representing a particular market segment, used as a benchmark for market performance (e.g., S&P 500).
Portfolio: A collection of investments, which can include stocks, bonds, and other assets.
Diversification: Spreading investments across different assets to reduce risk.
Market Order: An order to buy or sell a stock immediately at the current market price.
Limit Order: An order to buy or sell a stock at a specific price or better.
Short Selling: Selling borrowed shares in the hope of buying them back at a lower price to make a profit.
Stock Split: A division of existing shares into multiple shares, often to lower the stock price and make it more accessible.
Initial Public Offering (IPO): The first sale of a company's stock to the public, transitioning from private to public ownership.
Stock: A share in the ownership of a company.
Ticker Symbol: A unique combination of letters representing a company's stock on the stock exchange.
Market Capitalization: The total value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares.
Dividend: A portion of a company's earnings distributed to shareholders on a regular basis.
Earnings Per Share (EPS): A company's profit divided by its number of outstanding shares, indicating its profitability on a per-share basis.
P/E Ratio: Price-to-Earnings ratio, which compares the stock price to its earnings per share, helping assess valuation.
Bull Market: A market characterized by rising stock prices and optimism.
Bear Market: A market characterized by falling stock prices and pessimism.
Blue Chip Stocks: Stocks of large, well-established, financially stable companies with a history of reliable performance.
Volatility: The degree of variation in a stock's price over time, indicating risk.
Liquidity: The ease of buying or selling a stock without causing significant price changes.
Index: A collection of stocks representing a particular market segment, used as a benchmark for market performance (e.g., S&P 500).
Portfolio: A collection of investments, which can include stocks, bonds, and other assets.
Diversification: Spreading investments across different assets to reduce risk.
Market Order: An order to buy or sell a stock immediately at the current market price.
Limit Order: An order to buy or sell a stock at a specific price or better.
Short Selling: Selling borrowed shares in the hope of buying them back at a lower price to make a profit.
Stock Split: A division of existing shares into multiple shares, often to lower the stock price and make it more accessible.
Initial Public Offering (IPO): The first sale of a company's stock to the public, transitioning from private to public ownership.
