This basic domain knowledge of some of these terminologies is really important. If you want to enter the stock market to transform yourself into a profitable trader.
In this blog, we are going to present an elementary guide for beginners to help them understand the basic key terms used in the share market. And also make their journey smoother.
WHAT IS THE NEED FOR STOCK TERMINOLOGY?
Stock market terms are share market-specific terms or jargon used by experts to discuss trading techniques, stocks, and their volatility. Also, they use these technical terms to specifically ponder upon strategies, graphs, patterns, indices of the trading industry.
QUICK GLOSSARY FOR SOME STOCK TERMINOLOGY
- Capitalization – This is the company’s value from the market’s point of view.
- Volatility –Term used to determine the upward or downward movement of a stock
- Bull-It is a market condition where investors are expecting the market to rise
- Bear – It is a market condition where investors are expecting the market to fall.
- Bid: The bid is the amount that you are paying to buy a share.
- Beta-A proper calculation of the relationship between the price of a stock with comparison to the flow of the entire market.
Blue Chip Stocks- Blue-chip stocks offer a stable and reliable track record of significant dividend payments and have a reputation for their management. And the expression has been originated from blue gambling chips. It is the highest denomination of chips highly appreciated in casino royals.
Close -The NYSE and Nasdaq close at 4 p.m, with after-hours trading continuing until 8 p.m. And it simply implies the time at which a stock exchange closes its trade.
Day Trading-It is the activity of buying and selling the stocks within the same trading day, before the closing of the markets of that day, is called day trading. And traders who practice in day trading are popularly known as “active traders” or “day traders.”
- Market breadth– It is a ratio used by technicians to compare the total number of stocks that are rising in comparison to the total number of stocks that are falling. And the whole and sole purpose of these techniques are to observe the overall flow. And momentum in which the stock market is heading.
- Buy/sell/hold -This is one of the easiest jargon in the entire glossary.
Buy implies buying of stocks in exchange of money. Sell refers to the selling of the shares to attain money. On the other hand, Hold means to keep a hold on the stock in your portfolio
I hope these terms can provide you great assistance in your investment journey.