23 most important words used in the stock market Stock Market Terminology

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Posted on 27-12-2020 by Admin

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Bull market (bull): If one feels that the market will go up and the price of the shares will rise then it is said that it is in a boom. If the market continues to move upwards in a fixed time, then it is said that the market is in the bull market, or there is an environment in the market.

Bear Market (Recession): The opposite of the bullish environment is the recession. If you think that the market will go down in the coming time, then it is said that you are Bearish with that stock. Similarly, when the market is going downwards for a long time, it is said that the market is in the bare market.

Face value of a share: The fixed price of a share is called the face value or cross value. This is decided by the company and it is important for their corporate decisions, such as the basis of the face value of the share at the time of giving a dividend or a stock split. For example, if the face value of Infosys shares is Rs 5 and the company pays an annual dividend of Rs 65, then it means that the company paid 1260% dividend. (65 ÷ 5)

Equity Share: Equity shares are the shares which get franchise from the company. These shareholders are the owners of the company only in proportion to the shares held. They are not eligible for dividend distribution.

52 week high / 52 week (52 week high / low): 52 week high means the stock has the highest price in the last 52 weeks. Likewise, 52 weeks mean lowest price in 52 weeks. The 52 week high or low price indicates the stock price range. When a stock is near its 52-week high, many people believe that the stock is going to be in a boom, similarly when the stock is near its 52-week low, it is believed that the stock is in recession Going to do.

Preference Share: These are the share holders who are given preference in dividend distribution. If some dividend is left after the profit is distributed, it is distributed among the equity share holders. The holders of preference shares are not enfranchised in the company. Happens

Follow public offer: When a new company raises its authorized capital from the primary market by issuing shares, it is called FPO.

Blue Chip Company: It is a company whose shares are considered very safe to buy. An investor buying the shares of this company derives a risk-free profit.

Bonus Issue: This type of share bonus is given free of charge to the shareholders who already own the shares of that company. Such shares are also called dividend shares.


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