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15 Stock Trading Terms You Must Know - Part 1

11 Jan 2016 | 16:00PM

Let’s introduce Dinesh, a newbie, to the most commonly used terms of the share market.

Stock:

  Also referred to as share or equity, stock is the basic ownership unit of a company.

Stock Market:

  This is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets.

Volatility:

  Volatility is the degree of variation of a trading price series over time, as measured by the standard deviation of returns. Simply put, the fluctuation of a stock or the market in general is referred to a volatility

Liquidity:

  Liquidity is how easily you can buy or sell a stock & convert it into cash.

Dividend:

  The part of the company’s profits, which is usually distributed to company’s shareholders, periodically.

Bull Market:

A bull market is a market condition that means stock prices are expected to rise.

Bear Market:

A bear market is one in which investors expect stock prices to fall.

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