Why Learning Stock Market Terms Is Crucial
If you’re starting your stock investment journey, it’s easy to feel lost in the jargon. But understanding the basics makes all the difference.
Let’s decode the most important stock market terms every beginner should know in simple language.
25 Stock Market Terms for New Investors
1. Stock
A share or part ownership of a company.
2. Shareholder
An individual who owns shares in a company.
3. Nifty & Sensex
India’s major stock market indices. Nifty tracks top 50 companies; Sensex tracks 30.
4. IPO (Initial Public Offering)
The first time a company offers its shares to the public.
5. Bull Market
A market where prices are rising and investor sentiment is positive.
6. Bear Market
A market where prices are falling and investor sentiment is negative.
7. Demat Account
An electronic account where your shares are stored.
8. Trading Account
An account used to buy/sell shares on the stock market.
9. Broker
A person or platform (like Zerodha, Groww) that helps you trade stocks.
10. Dividend
A part of company profits paid to shareholders.
11. Market Capitalization (Market Cap)
The total value of all shares of a company: Price × Number of Shares.
12. Blue Chip Stocks
Shares of large, stable, and reputable companies.
13. P/E Ratio (Price to Earnings)
Tells you if a stock is overpriced or underpriced.
14. Volume
The number of shares traded during a specific period.
15. Volatility
How much a stock’s price moves up or down.
16. Limit Order
You set the price at which you want to buy/sell a stock.
17. Market Order
You buy/sell a stock at the current market price.
18. Stop Loss
A tool to automatically sell a stock to avoid large losses.
19. Portfolio
Your total collection of stocks and investments.
20. Risk Appetite
Your ability and willingness to handle investment risks.
21. Short Selling
Selling borrowed shares with the intention to buy them back cheaper.
22. Multibagger
A stock that gives multiple times returns (e.g., 2x, 5x).
23. Technical Analysis
Using charts and price data to predict stock movements.
24. Fundamental Analysis
Studying a company’s financials to judge stock value.
25. Circuit Limit
The maximum range a stock can move (up/down) in a day.
Vizzve's Quick Tip:
“Learning the language of the stock market is like learning the rules of a game. Once you know them, you’ll play smarter.”
FAQs
Q1. Do I need to know all these terms before investing?
Not all, but knowing the basics helps avoid mistakes and boosts confidence.
Q2. Where can I open a Demat & Trading account?
With platforms like Zerodha, Upstox, Groww, and through guidance from Vizzve Finance.
Q3. How can I reduce stock market risk?
By diversifying, investing in SIPs, and avoiding emotional trading.
Published on : 25th July
Published by : SMITA
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