This page specially for entry level investors and traders as "Quick reference guide" on share markets. To understand easily and quickly the stock market structure at single page. Popular terms using in capital market described here with snippet of information(meaning).
Stock Market Definitions and Meanings
Stock market : Stock market / Share market / Equity market / Capital market is a public market for the trading of company stocks & derivatives at an agreed price conducted by professional stock brokers.
Share market : Share market / Stock market / Equity market / Capital market is a public market for the trading of company shares and derivatives at an agreed share price through stock exchanges.
Stock Exchange: Exchange or transfer of shares ownership by professionally qualified stockbrokers.
Stock trading: A stock trader / stock investor who buys and sells stocks or financial instruments in the financial markets.
Investment: Financial instrument to appreciate the capital in future.
Technical analysis: Security analysis for forecasting the direction of prices through the study of historical market / stocks price data.
Fundamental analysis: Method of security valuation (stocks analysis) by examining the company's financials and operations without past performance.
Forex: Worldwide decentralized over-the-counter financial market for currency trading of various global countries.
Market capital: Market capitalization of a company by multiplying the current market price(CMP) of share by the total number of shares issued by the company.
Stock: The stock or capital stock of a business entity represents the original capital invested in the business by promoters.
Share: Part of the company or enterprise issues to public or private to rise Money.
Equity: The value of an ownership in property or business, generic term for equity is stock.
Multibagger: Company with strong fundamental values to increase investor wealth in future.
Derivatives: Derivatives is a financial instrument, an agreement between two people or two parties.
Stock broker: Regulated professional broker who buys and sells equity shares.
Intraday: Trade process of Buy and Sell within single trading day, It means square off the open positions before close of markets.
BTST: BTST is buy the stocks today to sell tomorrow, able to sell the shares before receives the delivery of shares.
STBT: STBT is different when compare with BTST, It is possible only if holding shares in account.
Demat account: In India, refers to a dematerialized account(Demat). Securities are held in electronic form instead of paper certificates bu NSDL and CDSL.
Swing trading: Swing Trading is non intraday based trading at the same time not for long-term, purely short-term means more than one day to within some weeks.
Brokerage: Brokerage gives two different meanings, first one is a firm engaged in buying and selling of stocks for clients is the business or office of a broker. Second one is fee / charge paid to broker. stock brokers charges a fee to act as intermediary between buyer and seller.
Business: A legally approved organization designed to provide goods, services, or both to consumers. also known as company, enterprise or firm.
Speculation: Generally an opinion based on incomplete evidence, purchasing risky investments in share market without proper knowledge or fundamental news that present the possibility of large profits, but including higher-than-average possibility of capital loss.
EPS: Earnings per share(EPS), using to analyze the company's earnings performance.
PE ratio: Price earning(PE), divide the share price by EPS to know the PE ratio.
Top line: Top lines of an income statement like Sales and Revenue.
Bottom line: Bottom lines of an balance statement like net profit.
Bonus share: Bonus share means an extra dividend paid to shareholders in the form of shares.
IPO: Initial public offer(IPO) of shares to public through stock exchanges.
Rights issue: Offer the shares to existing share holders at discount price.
FPO: Follow on public offer is same as initial public offer (IPO), but second time come to rise the capital.
Open offer: Same as rights issue, but cannot sell entitlement in an open offer.
More "Stock Market Definitions" will be updated time to time.
Read:
Stock Market Basics.
Stock Market Abbreviations.
Indian Stock Market Statistics.