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Let's introduce Dinesh, a newbie, to the most commonly used terms of the share market.
1. Stock: Also referred to as share or equity, stock is the basic ownership unit of a company.
2. Stock Market: This is the market in which shares of publicly held companies are issued and traded through exchanges.
3. 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 fluctation of a stock or the market in general is referred to as volatality.
4. Liquidity: Liquidity is how easily you can buy or sell a stock & convert it into cash.
5. Dividend: The part of the company’s profits, which is usually distributed to company’s shareholders, periodically.
6. Bull Market: A bull market is a market condition that means stock prices are expected to rise.
7. Bear Market: A bear market is one in which investors expect stock prices to fall.