Basic terms used in Share Market
- Stock/share: The Share or stock means owning some percentage of a particular company through investing some amount in it. Which means if the company makes a profit, then you will have a profit amount based on your investment percentage.
- Stock exchange: Stock exchange is an institute where investors or trader hold or trade their stock. In India, there are two stock exchanges BSE - Bombay stock exchange & NSE National stock exchange.
- IPO: IPO stands for Initial Public Offering, where a company offers its share for the first time in the market.
- Demat Account: Demat is a type of Account used by investors to hold their shares in an electronic form. The stocks in the demat account are in dematerialized form. Dematerialization is the process of converting physical shares into the electronic format.
- Face Value: Face value is the value written above the stock/share or currency. Every stock has a particular price which does not change regularly and it is almost fixed, this fixed price is known as Face Value.
- Day Order: Day order is valid for the full day.
- Market Order: This means that you want to buy shares at the current market price
- Limit Order: In this order, you define at the minimum which price you want to buy and at a maximum which price you want to sell.
- Dividend: The dividend is the profit given to the shareholder of the company when the company makes a profit. Sometimes it also uses as an investment to retain earning.
- Broker: A broker is that person who completes the order to sell and buy the shares of the trader or investor into the Market for which it takes fees or commission.
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