Most commonly used terms. I hope this will be useful for beginners.
Bear and Bull markets
A bear market is one in which prices are low or declining; a bull market
is one in which prices are high or rising.
Open
The first price at which the stock opens when market opens in the morning.
High
The stock price reached at the highest level in a day.
Low
The stock price reached the lowest level in a day.
Close
The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day.
Volume
Volume is nothing but quantity.
Bid
The Buying price is called as Bid price.
Offer
The selling price is called offer price.
Bid Quantity
The total number of stocks available for buying is called Bid Quantity.
Offer Quantity
The total number of stocks available for selling is called Offer Quantity.
Transaction
One complete cycle of buying and selling of stocks is called One Transaction.
Squaring off
This term is used to complete one transaction. Means if you buy then have to sell (means square-off) and if you sell then you have to buy (means square-off).
Limit Order
In limit order the buying or selling price has to be mentioned and when the stock price comes to that price then your order will get executed with the mentioned price by you
Market Order
When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order get immediately executed at the current available price.
Stop Loss Trigger Price
Stop loss and trigger price are used to reduce the losses. This is very important term especially if you are doing day trading (intraday). Stop Loss as the name indicates this is used to reduce the loss.
Rolling Settlement Cycle (RSC)
RSC means when you will get your stocks in your demat account or in physical form. In a rolling settlement, each trading day(T) is considered as a trading period and trades executed during the trading day(T) are settled on a T+2 basis i.e. trading day plus two working days.
Earnings Per Share (EPS)
The portion of a company’s profit allocated to each outstanding share
of common stock.
Price/Earnings ratio (price-to-earnings or P/E ratio)
The price of a share of a stock divided by earnings per share (EPS), usually
calculated using the latest year’s earnings. The P/E ratio is also
called the "multiple."
Blue-chip stocks
A term generally applied to stocks of well-established companies that
are known for their track records of solid management, and which have
excellent records of consistent profits and paying dividends to stockholders.
Generally, dividends of blue-chip stocks are relatively moderate
in nature.
