Subscribe to Generalknowledgetoday's Dialy Free NewsLetter !
Published On: Sun, Sep 6th, 2015

Stock Market Terms Glossary and Trivia

Stock Market 3D cube Word Cloud Concept with great terms such as exchange, risk, funds, money and more.

Here’s a glossary of stock market terms, suitable for beginners.

Stock :Ownership of a corporation indicated by shares, which represent a piece of the corporation’s assets and earnings.

Current assets : Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year.

Asset :Any possession that has value in an exchange.

Debenture: The stock that a company issues which are backed by assets.

Depreciation: The amount of money set aside for replacement of the assets.

Dividend: The part of the company’s profits which is usually distributed to company’s shareholders, normally on regular basis.

Equities: These are the ordinary shares. They are different from debenture and also from loan stock.

Ex-dividend: The share which is bought without any right for receiving the next dividend. This is usually retained by sellers.

How To Make money on the stock market ?

“If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.” – Larry Hite

Open a Stock Market Trading account with ZERODHA Now !!

Zerodha – India’s first discount broker offering the lowest, cheapest brokerage rates in the industry.

After-hours Deal: The stock market usually closes at 4:00pm. After this scheduled time, deals can also be made but the transaction is dated the next day, known as an after-hours deal.

Annual Report: An audit report to shareholders produced yearly. This report is produced by all publicly quoted companies.

Balance Sheet: The financial statement which shows the liabilities and assets of a company.

Bargain: Regarding sale or purchase in the stock market, bargain is a common word.

Bearer Stocks: This is the stock that is unregistered with the owner’s name.

Bed and Breakfast Deal: This refers to the sale of share and repurchase on another day. It’s done to set up profit or loss for the purpose of tax.

Bid Price: This term indicates the sale price of stocks or shares.

Blue Button: Refers to the stockbroker’s clerk. Only a blue button is allowed on the trading floor.

Blue Chip: These are shares of big and reputed companies.

Book Value: The net worth of the company as listed on the balance sheet.

Bull: A person who considers the share price of the stock exchange to be on the rise.

Call: An extra installment due on shares.

Capital: The amount of money used for setting up a new business.

Final Dividend: This is the dividend which is declared according to the company’s annual results.

Futures: Contracts that allow any holder the legal right to buy or sell Indexes and Commodities in the future at a price set today.

Gross: The interest paid without deducting of tax.

Hedge: This means to insure the risk.

Cash Settlement: In the stock exchange, there are certain deals like Gilts which are rendered for cash and not for account settlement. They are settled the next day of the deal.

Contract Note: This is a printed confirmation letter from any broker indicating a bargain which is carried out.

Coupon: Refers to interest amount payable only for fixed interest stock.

Cum Dividend: These are shares that are sold, allowing the buyer to receive the following dividend.

Dawn Raid: Refers to the buying of a huge amount of shares in the morning at the opening of stock market.

Dealing: This means the purchase and sale of shares.

Zerodha 60 Day Challenge, Trade more, for a lot less

Zerodha is the  India’s fastest growing, top volume contributors on NSE, BSE, MCX-SX and MCX, with average daily turnovers of over Rs 5000 crores.  Zerodha presents the 60 day challenge which gives traders on equity (stocks and F&O), currency, and commodity exchanges an opportunity to put their trading skills to test.

The challenge is open till 30st, September, 2015

Click Here to Open your Account Today

Limit Order: This is an order to any stockbroker specifying any fixed price limit.

Liquidation: Converting the prevailing assets to cash.

Loan Stock: The stock that bears a fixed interest rate. It’s different from debenture stock because it’s not required to be secured by any asset.

Nominee: The term refers to a person acting on the behalf of another in the stock market in documentary as well as financial affairs.

Offer Price: Refers to the specific price at which one can buy stocks and shares.

Options: The term means the right to purchase (call option) and sell (put option) a particular share at a particular price within a particular period.

Ordinary Share: This is a share where the dividends usually vary in the amount.

Over the Counter Market (OTC): Refers to a marketplace outside the main stock market.

PLC: This means Public Limited Company (formerly Ltd). In the stock market, some public limited companies are not always quoted.

Portfolio: A selection of shares usually held by a person or fund.

Proxy: Anybody who votes on another person’s behalf if the person is unable to attend a shareholders’ meeting.

Stock: Also referred to share or equity, stock is the basic ownership unit of a company.

Stock Warrants: An instrument that conveys the right to buy additional stock within a fixed time period at a set price. Warrants differ from stock options in the way they are exercised.

Yearlings: Bonds issued for twelve-month term, mainly by local authorities.

Yield: The gross dividend presented as the percentage of the share price.

How To Make money on the stock market ?

“If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.” – Larry Hite

Open a Stock Market Trading account with ZERODHA Now !!

Zerodha is an award winning Indian financial services company (member of NSE , BSE, MCX, MCX-SX) that offers retail and institutional broking and distribution.Zerodha is a Bangalore, India based Flat Fee Share Broker (Also known as Budget Broker / Discount Broker / Pay Per Order Brokerage) for trading in Stock.

Open a stock market trading account with Zerodha

Click Here to Open your Account Today


About the Author

ഇപ്പോള്‍ നിങ്ങള്‍ക്കും ഏറ്റവും കുറഞ്ഞ വിലയില്‍ സ്വന്തമാക്കാം ,Best Offers on Laptops, Cameras, Mobiles and Books on Flipkart; Check it Now!!!,സന്ദര്‍ശിക്കൂക .ഇവിടെ ക്ലിക്ക് ചെയ്യൂ.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>