Basic Stock Market Terms you should know
1.Agent:
An agent is a brokerage firm that buys and sells shares on the stock exchange on behalf of investors.
2.Ask/Offer:
This indicates the lowest price at which the stock owner is willing to sell the stock on the stock exchange.
3.At the money:
In this scenario, the option's strike price equals the market price of the underlying asset it represents.
4.Broker:
A person who buys and sells investments/stocks on behalf of an investor/dealer for a fee.
5.Bear Market:
It refers to the period during which stock prices continue to fall. This is typically a 20% decline in the stock price from the most recent high.
6.Bull Market:
Unlike a bear market, a bull market is one in which stock prices rise over an extended period of time. Single stocks and sectors can be bullish at one time and bearish at another.
7.Beta:
It measures the relationship between stock prices and the overall movement of the stock market. The market beta is assumed to be 1. A stock's beta greater than 1 indicates it is riskier than the market. A beta less than 1 indicates that the stock is less risky than the market or may fall relative to the market.
8.Bid:
This is the maximum price a stock purchaser is willing to pay for a particular stock.
9.Blue Chip Stock:
These are stocks in companies that are well established and financially stable. These typically have a relatively high market capitalization.
10.Board Lot:
Each exchange defines a standard trading unit based on price per share. Common PCB lot sizes include 50, 100, 500 and 1000 units.
11.Bonds:
A bond is a fixed-income investment issued by a government or corporation to a purchaser. This is a variable or fixed rate, called a coupon rate, that indicates a specific amount that an investor will lend to the bond issuer for a specific period of time.
12.Book:
This refers to the electronic record used to organize all pending buy and sell orders for a particular stock.
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