Share market terms you should be aware of

What is the stock market all about? It is an exciting place where you create a corpus at a faster rate than other investment instruments. If you do your research and familiarise yourself with well-performing stocks, you can make a profit of thousands or lakh within months and earn massive returns. For this to happen, you should know the share market basics such as the terms and jargons concerning trading.

How to invest in the market?

Today, you can invest in the share market through online mediums like a trading app, wherever you are. This is possible only if you have a Demat and trading account in place. You purchase the shares of a company at a given price and sell them whenever you want, after booking profits. Apps and websites also have the provisions of keeping track of the investments, enabling you to sell them at the right time. Similarly, you must know when to buy stocks and sell them, even it means incurring a loss.

Basic terminologies, you should know:

•    Buy

Buying in the stock market means availing share units of a company. When you buy stocks from a specific company, you are taking a position in that firm.

•    Sell

Whether you want to get rid of the stock upon achieving your financial goals or seek to cut down the losses, sell the stocks. The stock selling gets by other investors who are interested in buying them.

•    Ask

When you decide to sell shares, you must find buyers who want to purchase it at the price you quote. This is called ask.

•    Bull market

The prices in the share market are not always consistent. On some days, they fall, and on other days they rise. A bull market means where the investors expect the stock prices to rise, i.e. the entire market seems to be performing optimally and can book a profit during this time.

•    Bear market

It is when the share prices fall drastically. When you talk about investing in the share market, learn that buying stocks by investing in the bear market is profitable. You can buy stocks at the lowest price and book profit when the bull trend arrives.
•    IPO

When a private company decides to go public, it lists itself in the primary market. This gets done through Initial Public Offering, where the interested investors can buy stocks of the private company before they appear on the stock exchanges.

•    Secondary market

Once the company appear on the stock exchange, you can buy and sell the shares seamlessly. This gets done in the secondary market.
You can learn these terms on the trading app as well nowadays, apart from catching up on the latest market trends.

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