Glossary, Stock Market Basic, Share Market Basic

Whether you are a beginner at investing or seasoned investor being familiar the basic term of the stock market is essential. Expanding your stock market vocabulary will enable you to be a better investor, so that you can trade successfully. Given below is a basic glossary of terms that 

you must know as an investor:-

•     Agent: In the stock market, an agent refers to a brokerage firm which buys or sells shares on behalf of the investor.
•     Ask/Offer:Lowest price at which an owner agrees to sell the shares.
•     Assets:Assets refers to the property owned by the company such as cash, equipment, land, technology etc.
•     Bear Market: It is a market situation where the stock prices fall consistently.
•     At the money:A situation at where the options strike price is same as the price of the underlying securities.
•     Beta: It is a measurement of relationship between stock price of any particular stock and the movement of whole market.
•     Bid: The highest price that a buyer is willing to pay for a particular stock.
•     Blue Chip Stock: Stock of well-established and financially sound companies that have a market capitalization in thousands of crores.
•     Board Lot:A standard trading unit which is defined by a particular exchange board. The Board lot size depends on the per share price. Some common board lot sizes are 50, 100, 500, 1000 units.
•     Bonds: It is promissory note issued by the government or a company to its buyers. It illustrates the specified amount held for a specified time period by the buyer.
•     Book: It is an electronic record that is used to manage all the pending buy and sell orders of particular stocks.
•     Bull Market: A market situation where the price of the stocks increases rapidly.
•     Call Option: It is an option given to investor the right to buy a particular stock at a specified price and time which is not an obligation.
•     Close Price:The final price at which the stock is sold or traded on a particular trading day.
•     Convertible Securities: A security (bonds, debentures, preferred stocks) by an issuer that can be converted into other securities of that issuer are known as convertible securities.
•     Debentures: A form of debt instrument which is not secured by physical assets or collateral.
•     Defensive Stock:A type of stock that provides a constant rate of dividends even in the periods of economic downturn.
•     Delta: The ratio that compares the change in the price of the underlying asset to the corresponding change in the price of a derivative.
•     Face value: It is the cash value or the amount of money the holder of a security is going to earn from the issuer of the security at the time of maturity.

    One-side