Share Market Dictionary: A Comprehensive Guide to Stock Market Investing

Share Market Dictionary (Stock Market Investing Books English)

by A. Sulthan

4.2 out of 5

Language	:	English
File size	:	2227 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	114 pages

FREE

The stock market, a dynamic and complex financial ecosystem, presents a myriad of terms and concepts that can be daunting to navigate for beginners. This Share Market Dictionary aims to alleviate this learning curve by providing a comprehensive glossary of essential definitions and explanations. With this guide, you will gain a solid understanding of the fundamental principles and jargon of stock market investing, empowering you to make informed decisions and maximize your financial potential.

Glossary

A

• Annual General Meeting (AGM): A yearly meeting held by publicly traded companies to present their financial performance, elect directors, and engage with shareholders.
• Asset: Anything of value that a company owns, such as cash, inventory, or real estate.
• Bear Market: A period of sustained decline in stock prices, typically characterized by pessimism and a lack of investor confidence.

B

• Blue Chip: A well-established and financially stable company with a strong track record of profitability and dividend payments.
• Bond: A debt instrument issued by a company or government that pays regular interest payments and returns the principal amount at maturity.
• Broker: A licensed individual or firm that executes trades on behalf of clients in exchange for a commission.

C

• Capital: Funds used by a company to finance its operations and growth, such as equity and debt.
• Capital Gains: The profit realized when an asset is sold for a higher price than the purchase price.
• Company: A legal entity that conducts business and issues shares of stock to investors.

D

• Dividend: A distribution of profits paid by a company to its shareholders, typically in cash or additional shares.
• Diversification: The practice of investing in a variety of assets or markets to reduce risk.
• Dow Jones Industrial Average (DJIA): A stock market index that tracks the performance of 30 large, blue-chip companies.

E

• Earnings per Share (EPS): The net income of a company divided by the number of outstanding shares.
• Equity: Ownership interest in a company represented by shares of stock.
• Exchange-Traded Fund (ETF): A type of investment fund that tracks a basket of stocks, bonds, or other assets and trades on stock exchanges like individual stocks.

F

• Financial Statement: A report that provides a snapshot of a company's financial health, including income statement, balance sheet, and cash flow statement.
• Fundamental Analysis: The study of a company's financial performance, management team, and industry to assess its intrinsic value.
• Futures Contract: A standardized agreement to buy or sell a specific asset at a specified price and date.

G

• Growth Stock: A company with high growth potential and earnings, often associated with emerging industries and innovation.
• Gross Domestic Product (GDP): The total value of goods and services produced by a country in a specific period.
• Growth Rate: The percentage change in a company's or economy's output over a specific period.

H

• Hedge Fund: A type of investment fund that uses complex strategies and often high leverage to generate returns.
• Historical Price: The past prices of a stock or asset, used for technical analysis and charting.

I

• Initial Public Offering (IPO): The process by which a private company sells its shares to the public for the first time, raising funds for growth.
• Insider Trading: Buying or selling stocks based on non-public information, which is illegal and unethical.
• Interest Rate: The cost of borrowing money, which affects the returns on bonds and other debt instruments.

J

• Joint Stock Company: A company whose ownership is divided into shares that can be bought and sold by shareholders.

L

• Leverage: The use of borrowed funds to increase investment returns, also referred to as gearing.
• Liquidity: The ease with which an asset can be bought or sold.
• Long Position: A trading strategy in which an investor buys a stock with the expectation that its price will increase.

M

• Market Capitalization: The total value of a company's outstanding shares, calculated as the share price multiplied by the number of shares.
• Mutual Fund: A type of investment fund that pools money from multiple investors and invests it in a diversified portfolio.

N

• Net Asset Value (NAV): The value of the assets in a mutual fund or ETF divided by the number of outstanding shares.
• NYSE (New York Stock Exchange): The largest stock exchange in the world.

O

• Offering: The sale of new shares of a company to the public, either through an IPO or a secondary offering.
• Option: A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price and date.

P

• Portfolio: A collection of investments held by an individual or institution.
• Price-to-Earnings (P/E) Ratio: A valuation metric that compares a company's stock price to its earnings per share.
• Profit Margin: A measure of a company's profitability, calculated as净利润 divided by revenue.

Q

• Quantitative Easing (QE): A monetary policy by central banks to stimulate economic growth by increasing the money supply.

R

• Return on Equity (ROE): A measure of a company's profitability, calculated as net income divided by shareholders' equity.
• Return on Investment (ROI): The profit or gain achieved from an investment relative to the cost.
• Risk Tolerance: An investor's ability and willingness to withstand losses or volatility in their investments.

S

• Secondary Offering: The sale of additional shares of a company's stock after an initial public offering.
• Short Position: A trading strategy in which an investor sells a stock with the expectation that its price will decrease.
• Small Cap: A company with a relatively small market capitalization.

T

• Technical Analysis: The study of historical price data to identify trading trends and patterns.
• Ticker Symbol: A unique abbreviation used to identify a stock or asset on stock exchanges.
• Trade: The buying or selling of an asset, such as a stock or bond.

V

Share Market Dictionary (Stock Market Investing Books English)

by A. Sulthan

4.2 out of 5

Language	:	English
File size	:	2227 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	114 pages

FREE