Stock Exchange Terminology:
- Stock: Refers to ownership in a company and represents a claim on part of the company's assets and earnings.
- Stock Exchange: A marketplace where securities, such as stocks, bonds, and commodities, are bought and sold.
- Stock Market Index: A measure that tracks the performance of a specific group of stocks or the entire stock market.
- Broker: An individual or firm that acts as an intermediary between buyers and sellers of securities.
- Bull Market: A period of rising stock prices and investor confidence.
- Bear Market: A period of falling stock prices and pessimism among investors.
- Dividend: A payment made by a company to its shareholders, usually as a distribution of profits.
- Market Capitalization: The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding.
- Initial Public Offering (IPO): The first time a company sells its stock to the public, raising capital by issuing new shares.
- Volume: The number of shares traded in a stock or the market as a whole during a given period.
- Blue Chip Stocks: Stocks of well-established, financially sound companies with a history of stable earnings and dividend payments.
Understanding these stock exchange terminologies is essential for investors to navigate the complexities of the financial market and make informed decisions when buying and selling stocks.