Master essential terms and concepts to navigate the stock market confidently
📜
Ownership unit in a company
🎪
Initial Public Offering - first sale of stock
💰
Portion of profit distributed to shareholders
💼
Collection of all your investments
📊
Price fluctuation rate of a stock
💧
Ease of buying/selling without price impact
🔵
Highest price buyer willing to pay
🔴
Lowest price seller willing to accept
↔️
Difference between bid and ask price
⚡
Buy/sell immediately at current price
🎯
Buy/sell only at specified price or better
🛡️
Automatic sell order to limit losses
📈
30 largest companies on BSE
📊
50 largest companies on NSE
🏦
Top 12 banking sector stocks
💻
Leading IT sector companies
📊
Price to Earnings - stock valuation metric
Formula: Market Price / EPS
📚
Price to Book - asset valuation metric
Formula: Market Price / Book Value
💹
Return on Equity - profitability metric
Formula: Net Income / Shareholder Equity
⚖️
Company leverage indicator
Formula: Total Debt / Total Equity
💵
Earnings Per Share
Formula: Net Income / Outstanding Shares
💰
Annual dividend return
Formula: Annual Dividend / Stock Price
⏱️
Buy and sell on same day
📦
Buy for long-term holding
💵
Cash and Carry - delivery trading
🔄
Margin Intraday Square-off
🐂
Bulls
Optimistic investors who expect prices to rise
🐻
Bears
Pessimistic investors who expect prices to fall
🐷
Pigs
Greedy investors who take excessive risks