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.
