Familiarise with Some Basic Terms of Stock Marketing


Stock marketing is a complex concept and everybody cannot be successful at it. If you are a neophyte, it is really important that you take professional help. If you have any idea about stock marketing, you might know that you have to rely on brokers for your stock deeds. There are two types of brokers: Discount broker in india and full time brokers. It is your personal choice to pick one as per your need and affordability.

You know, the young individuals who have the interest and zeal for stock trading generally lack the basic domain knowledge of market. Though trading does not need a lot of time and money, it is still necessary to equip oneself with some general tools and essential training to take the correct decisions. Before you get out into too many technicalities and complexities, it would be good if you acquaint yourself with some glossaries. Have a look at some terms and you might feel little informed and empowered.

  • Agent: A brokerage company is said to be an agent when it acts on the behalf of client in purchasing or selling of shares. At no point of the time in the whole transaction the agent is going to own the shares.
  • Assets: Everything the firm owns on its name, including the cash, land, Equipments, technology etc. these show the complete wealth of the firm.
  • At the money: it means a situation wherein an options strike cost is equal to the price of the underlying securities. Options trading activity inclines to be high when alternatives are at the money.
  • Ask-Offer: it means the lowest price an owner is willing to vend the stocks.
  • Beta: It is a dimension of relationship between stock price of any specific stock and movement of entire market.
  • Bear Market: it means a market wherein stock prices are dropping consistently.
  • Blue Chip Stock: Stocks of huge, well-established and financially-sound firms that hold a record of consistently increasing rate of paying dividends over decades to its stock holders. Blue chip stocks characteristically possess a market capitalization simply in thousands of crores.
  • Bid: It is the top most prices a buyer is willing to pay for a stock. It is opposite of offer/ask.
  • Book: it is an electronic record of managing all the pending purchase and sell orders of specific stocks.
  • Board Lot: it is a standard trading unit that is defined by the specific exchange board. Board lot size generally depends on the per share price. The common board lot size is fifty, one hundred, five hundred, one thousand units.
  • Bonds: It is promissory note issued by firms or government to its buyers. It talks about the particular amount held for a stated time period by the purchaser.
  • Broker-Brokerage Firm: it is a registered securities firm. Broker’s work as an advisor for buying and selling of listed stocks, they do not own the securities at any turn of the time. But they do charge a commission for the service they cater.

Conclusion

Thus, since you know so many terms of stock marketing now, it would be little easier for you to get into the world of stock marketing.

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