Trading
Buying and selling securities or commodities on a short-term basis, hoping to make quick profits.
An oral (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered "done" or final. To buy or sell an asset, frequently with only short intervals of ownership
Trading Account
1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.
2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.
Stock market:
A stock market may be a physical place, sometimes known as a stock exchange, where brokers gather to buy and sell stocks and other securities.
The term is also used more broadly to include electronic trading that takes place over computer and telephone lines. In fact, in many markets around the world, all stock trading is handled electronically.
Stock:
Stock is an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets.
Equity
Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value. In real estate, it is the difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house). In the context of a futures trading account, it is the value of the securities in the account, assuming that the account is liquidated at the going price. In the context of a brokerage account, it is the net value of the account, i.e. the value of securities in the account less any margin requirements.
share
Certificate representing one unit of ownership in a corporation, mutual fund, or limited partnership.
shareholder
One who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors. also called stockholder.
Shareholder rights
Although ownership of 50% of shares does result in 50% ownership of a company, it does not give the shareholder the right to use a company's building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This is important in areas such as insurance, which must be in the name of the company and not the main shareholder.
Broker
An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission. For securities and most other products, a license is required.
Asset
Any item of economic value owned by an individual or corporation, especially that which could be converted to cash.
Bid
The highest price any buyer is willing to pay for a given security at a given time; also called bid price. Quoted bid is a maximum price that a market maker will pay for a security.
you sell at the bid price
Ask
The lowest price that any investor or dealer has declared that he/she will sell a given security or commodity for. (also known as offer)
you buy at the offer price.
Trading Volume
The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. Also called volume.
Stock Split
Whenever a company believes that the price per share of its stock has risen to a point where investors may erroneously perceive it as expensive, they will split the stock, reducing the price but increasing the number of shares outstanding.
For example, if a company trades at RS.60 a share with 3 million shares outstanding and decides to split its stock two-for-one (2:1), this means that each share will now trade at RS.30 but there will be 6 million shares outstanding.
Circuit Filter
Circuit Filters or daily circuit filters sets the limit to fluctuations of stock prices. Circuit Filters are set by stock exchanges to stop any unduly rising or falling of a stock price.
They are numeric percent limits set on individual scripts. circuit filters in 5 categories including 2%, 5%, 10%, 20% and no circuit filter.
Circuit Filters works in either ways. I.e. if circuit set for equity is 10%, stock price cannot move further +10% to lower then -10%.
Circuit Filter changes every day and stock keeps moving between one circuit filter categories to other based on previous day’s closing price.
Daily trading limit (circuit limit):
The highest and lowest prices that a commodity or option is permitted to reach in a given trading session. Once reached, no trading occurs on that commodity or option until the following session. also called fluctuation limit or daily price limit.
NA (Not applicable)
N/A = Not applicable (because trading had not yet started)
A "N/A" reported in a stock's price-to-earnings ratio(P/E), can mean one of two things. The first, and simplest, would be that there is no data at time of reporting to calculate this ratio. This will be the case with a newly listed company that has yet to release its earnings. The second reason that a stock would report "N/A" as its P/E ratio could be that the number is negative. Negative P/E ratios are mathematically possible, but because they are generally not accepted by the financial community, they are usually reported as "N/A," or not applicable.
Price/earnings ratio
price/earnings ratio. The most common measure of how expensive a stock is. The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period.
Portfolio
A collection of investments, real and/or financial. A group of investments. The more diversified the investments in a portfolio, the more likely the investor is to earn the same return as the market.
Gamble
To engage in any activity in which money is put at risk for the purpose of making a profit, and which is characterized by some or most of the following (in approximately descending order of importance): little or no research has been conducted; the odds are unfavorable; the behavior is risk-seeking; an unsystematic approach is being taken; emotions such as greed and fear play a role; the activity is a discrete event or series of discrete events not done as part of a long-term plan; the activity is significantly motivated by entertainment or compulsion; ownership of something tangible is not involved; no net economic effect results.
Dividend
A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (stock dividend) or other property. Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends. The companies that offer dividends are most often companies that have progressed beyond the growth phase, and no longer benefit sufficiently by reinvesting their profits, so they usually choose to pay them out to their shareholders. also called payout.
K
Used frequently in the financial literature as a symbol for 1,000.
08.00k volume = 8000 volume
M
Used frequently in the financial literature as a symbol for 1,000,000.
08.00m volume = 8,000,000 volume.
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