Basic Terminologies of Stock Market

1. Agent: A brokerage company is said to be an executive when it performs on behalf of the customer in buying or purchasing of stocks. At no point of time in the whole transaction, the mediator will own the shares.

2. Ask/Offer:  The lowest value an owner is prepared to sell the stocks.

3. Assets: Everything the company owns on its name, contain the cash, equipment, land, technology etc. which demonstrate the total wealth of the corporation.

4. At the money: A state at which options hit price is equal to the price of the essential securities. Options trading movement tends to be elevated when options are at the money.

5. Bear Market: A market in which stock prices are declining constantly.

6. Beta: It is a calculation of the relationship between the stock price of any special stock and the fluctuation of the whole market.

7. Bid: It is the maximum price a buyer is prepared to pay for a stock. It is conflicting of ask/offer.

8. Blue Chip Stock: Stocks of big, well-established and financially-sound companies which grasp a record of constantly rising rate of paying the dividends over decades to its share holders. Blue chip stocks naturally have a market capitalization in thousands of crores.

9. Board Lot: A normal trading unit as definite by the special exchange board. Board lot size frequently depends on the per share price. General board lot size is 50, 100, 500, 1000 units.

10. Bonds: It is promissory details issued by companies or government to its buyers. It speaks about the particular amount held for a particular time period by the trader.

Here we are showing basic terms of share trading with Free Stock Trading Tips, so that trader can make