STOCK MARKET TERMINOLOGIES: ANALYSIS

EDUCATIONAL PUPOSE ONLY:-

GENERAL STOCK MARKET TERMS:-

1. STOCK/SHARE: A UNIT OF OWNERSHIP IN A COMPANY.
2. EQUITY: OWNERSHIP IN A COMPANY REPRESENTED BY SHARES.
3. STOCK EXCHANGE: A MARKETPLACE WHERE STOCKS AND OTHER SECURITIES ARE BOUGHT AND SOLD (E.G., NSE, BSE).
4. IPO (INITIAL PUBLIC OFFERING): WHEN A COMPANY OFFERS ITS SHARES TO THE PUBLIC FOR THE FIRST TIME.
5. SECONDARY MARKET: A MARKET WHERE EXISTING SHARES ARE TRADED AMONG INVESTORS.

STOCK TRADING TERMS:-

1. BUY: PLACING AN ORDER TO PURCHASE SHARES.
2. SELL: PLACING AN ORDER TO SELL SHARES.
3. BULL MARKET: A MARKET CONDITION CHARACTERIZED BY RISING PRICES.
4. BEAR MARKET: A MARKET CONDITION CHARACTERIZED BY FALLING PRICES.
5. BID PRICE: THE HIGHEST PRICE A BUYER IS WILLING TO PAY FOR A STOCK.
6. ASK PRICE: THE LOWEST PRICE A SELLER IS WILLING TO ACCEPT FOR A STOCK.
7. SPREAD: THE DIFFERENCE BETWEEN THE BID PRICE AND THE ASK PRICE.
8. LIMIT ORDER: AN ORDER TO BUY OR SELL A STOCK AT A SPECIFIC PRICE OR BETTER.
9. MARKET ORDER: AN ORDER TO BUY OR SELL A STOCK AT THE CURRENT MARKET PRICE.
10. STOP-LOSS ORDER: AN ORDER TO SELL A STOCK WHEN IT REACHES A SPECIFIED PRICE TO LIMIT LOSSES.

STOCK MARKET INDICES:-

1. SENSEX: THE BENCHMARK INDEX OF THE BOMBAY STOCK EXCHANGE (BSE).
2. NIFTY: THE BENCHMARK INDEX OF THE NATIONAL STOCK EXCHANGE (NSE).
3. INDEX: A STATISTICAL MEASURE OF CHANGES IN A PORTFOLIO OF STOCKS REPRESENTING A PORTION OF THE MARKET.
4. MARKET CAPITALIZATION: THE TOTAL MARKET VALUE OF A COMPANY’S OUTSTANDING SHARES.
5. LARGE-CAP, MID-CAP, SMALL-CAP: CATEGORIES OF COMPANIES BASED ON THEIR MARKET CAPITALIZATION.

STOCK ANALYSIS TERMS:-

1. P/E RATIO (PRICE-TO-EARNINGS RATIO): A VALUATION RATIO CALCULATED BY DIVIDING A COMPANY’S CURRENT STOCK PRICE BY ITS EARNINGS PER SHARE (EPS).
2. EPS (EARNINGS PER SHARE): A COMPANY’S PROFIT DIVIDED BY THE NUMBER OF ITS OUTSTANDING SHARES.
3. DIVIDEND: A PORTION OF A COMPANY’S PROFIT DISTRIBUTED TO SHAREHOLDERS.
4. YIELD: THE DIVIDEND AS A PERCENTAGE OF THE STOCK PRICE.
5. VOLUME: THE NUMBER OF SHARES TRADED DURING A SPECIFIC PERIOD.
6. 52-WEEK HIGH/LOW: THE HIGHEST AND LOWEST PRICE A STOCK HAS REACHED IN THE PAST YEAR.

TECHNICAL ANALYSIS TERMS:-

1. CANDLESTICK CHART: A CHART USED TO REPRESENT PRICE MOVEMENTS OF A STOCK.
2. SUPPORT LEVEL: A PRICE LEVEL AT WHICH A STOCK TENDS TO STOP FALLING.
3. RESISTANCE LEVEL: A PRICE LEVEL AT WHICH A STOCK TENDS TO STOP RISING.
4. MOVING AVERAGE: AN AVERAGE STOCK PRICE OVER A SPECIFIC PERIOD, USED TO IDENTIFY TRENDS.
5. RSI (RELATIVE STRENGTH INDEX): A MOMENTUM INDICATOR MEASURING THE SPEED AND CHANGE OF PRICE MOVEMENTS.
6. MACD (MOVING AVERAGE CONVERGENCE DIVERGENCE): A TREND-FOLLOWING MOMENTUM INDICATOR.

STOCK MARKET PARTICIPANTS:-

1. RETAIL INVESTOR: INDIVIDUAL INVESTORS WHO BUY AND SELL STOCKS FOR PERSONAL ACCOUNTS.
2. INSTITUTIONAL INVESTOR: ENTITIES LIKE MUTUAL FUNDS OR INSURANCE COMPANIES INVESTING LARGE SUMS OF MONEY.
3. BROKER: A LICENSED INDIVIDUAL OR FIRM THAT EXECUTES BUY AND SELL ORDERS ON BEHALF OF INVESTORS.
4. TRADER: SOMEONE WHO BUYS AND SELLS STOCKS FREQUENTLY FOR SHORT-TERM GAINS.
5. MARKET MAKER: AN ENTITY THAT PROVIDES LIQUIDITY BY BUYING AND SELLING STOCKS.

KEY REGULATIONS AND BODIES:-

1. SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA): THE REGULATORY AUTHORITY FOR THE STOCK MARKET IN INDIA.
2. DEPOSITORY: AN ORGANIZATION THAT HOLDS SECURITIES IN ELECTRONIC FORM (E.G., NSDL, CDSL).
3. BROKERAGE: THE FEE CHARGED BY A BROKER FOR EXECUTING TRADES.
4. DEMAT ACCOUNT: AN ACCOUNT FOR HOLDING SHARES IN ELECTRONIC FORM.
5. TRADING ACCOUNT: AN ACCOUNT USED TO BUY AND SELL SHARES ON THE STOCK EXCHANGE.

MARKET RISKS AND EVENTS:-

1. VOLATILITY: THE DEGREE OF VARIATION IN A STOCK’S PRICE OVER TIME.
2. LIQUIDITY: THE EASE WITH WHICH A STOCK CAN BE BOUGHT OR SOLD WITHOUT AFFECTING ITS PRICE.
3. CIRCUIT BREAKER: A MECHANISM TO TEMPORARILY HALT TRADING IN CASE OF SIGNIFICANT MARKET MOVEMENT.
4. BLUE-CHIP STOCK: SHARES OF A LARGE, REPUTABLE, AND FINANCIALLY STABLE COMPANY.
5. PENNY STOCK: LOW-PRICED STOCKS WITH HIGH RISK AND LOW MARKET CAPITALIZATION.

TAXATION:-

1. CAPITAL GAINS TAX: TAX ON PROFITS FROM THE SALE OF STOCKS.
2. STCG (SHORT-TERM CAPITAL GAINS): GAINS FROM SELLING STOCKS HELD FOR LESS THAN A YEAR, TAXED HIGHER.
3. LTCG (LONG-TERM CAPITAL GAINS): GAINS FROM SELLING STOCKS HELD FOR MORE THAN A YEAR, TAXED LOWER.
4. SECURITIES TRANSACTION TAX (STT): TAX LEVIED ON TRANSACTIONS IN LISTED SECURITIES.

COMMON TERMS IN GLOBAL MARKETS:-

1. NASDAQ: AN AMERICAN STOCK EXCHANGE KNOWN FOR ITS TECH-FOCUSED LISTINGS.
2. DOW JONES: A STOCK MARKET INDEX IN THE UNITED STATES.
3. FOREX: FOREIGN EXCHANGE MARKET, WHERE CURRENCIES ARE TRADED.
4. ETF (EXCHANGE TRADED FUND): A FUND THAT TRADES LIKE A STOCK ON STOCK EXCHANGES.
5. ADR (AMERICAN DEPOSITORY RECEIPT): A WAY FOR INVESTORS TO BUY SHARES OF FOREIGN COMPANIES IN THE U.S.

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