The Stock Market can be intimidating to beginners in investment. So here are 10 terms you should be familiar with before getting into Stock Market and share investment.
1. Buy
This refers to the act of buying shares or taking a position in a company.
2. Sell
This refers to the act of selling shares that you own. This may be done if you have no more use for them or if you are trying to cut down on losses.
3. Bull Market
A bull market occurs when investors are expecting the prices of shares to rise.
4. Bear Market
A bear market occurs when the investors are expecting the prices of shares to fall.
5. Bid
A bid is the price an investor is willing to pay for a share.
6. Portfolio
An investor portfolio is a collection of investments owned by you. It is defined by your investment needs, your goals, your risk limits, etc.
7. Volatility
Volatility describes the rapidity in change of the market condition. A volatile market is difficult to predict and prices will fluctuate quickly.
8. IPO
It is an Initial Public Offering that happens when the private company becomes a publicly trade company.
9. BSE
The Bombay Stock Exchange. It is the oldest stock exchange in India. Sensex or Sensex 30 is BSE's flagship index.
10. Broker
A broker is a third party person who buys or sells your stocks. They do so on your behalf.