Stock market terms

Agent:

Agent is those who acts on behalf of the client in buying or purchasing of shares.

Ask/Offer:

The lowest price an owner is willing to sell the stocks.

At the money:

This is a situation at which an options strike price is identical to the price of the underlying securities.

 Options trading activity remains to be high when options are at the money.

Bear Market :

A market in which stock prices are falling consistently.

Beta:

It is a measurement of relationship between stock price of any particular stock and the movement of whole market. High beta stocks are more volatile.

Bid:

It is the highest price a buyer is willing to pay for a stock.

Bull Market:

A market in which the stock price are increasing consistently.

Call Option:

An option that is given to investor the right but not obligation to buy a particular stock at a specified price within a specified time period. It is also represented in NSE as CE.

Close Price:

The final price at which the stock is traded on a given particular trading day.

Defensive Stock:

even in the periods of economic downturn or critical situations of the stock market these companies continue to pay the dividends with earning at a constant rate Known as Defensive stock.

Delta:

The ratio that compares the change in the price of the underlying asset to the corresponding change in the price of a derivative.

Equity:

Common and preferred stocks, which represents shares in the ownership of a company.

Face value:

It is the cash denomination or the amount of money the holder of the individual security going to earn from the issuer of the security at the time of maturity.

Hedge:

A strategy for reducing the risk of adverse price movements of assets.

Index:

Indices have their own calculation methodology and are usually measured as a percentage change in the base value over the time.

Initial Public Offering (IPO):

A company's first issue of shares to general public for seeking funds for expansion and growth.

Limit Order:

A limit order sets a minimum price the seller is willing to accept and maximum price the buyer is willing to pay for it.

Portfolio:

This is basket of stocks, A portfolio may include various type of securities of different companies operating in different sectors.

Pre-opening Session

The pre-open session is for duration of 15 minutes i.e. from 9:00 AM to 9:15 AM. In pre-open session order entry, modification and cancellation takes place.

Position:

Long (Buy)or short ( Sell)position.

Price Spread:

Difference between bid and ask price on security

Put Option:

An option that is given to investor the right to sell a particular stock at a stated price within a specified time period. Put option is purchased by those who believe that particular stock price will go down the stated price.

Short:

When you have not soldsecurities you are said to be short of the market and will benefit if price will fall.

Spot Price: The current value of an asset.

Spread:

Difference between buying price and and the selling price on which stock will be sell.

Strike Price: The price at which the holder of an option can buy (in case of call option) or sell (in case of put option) the securities they hold when the option is executed.

Stock Split: This is an attempt to increase the number of outstanding shares of a company by splitting the existing shares. It is usually done to increase the availability of shares in the market.

Trading session: The period of time from 9:15 AM to 3:30 PM is open for trading for both sellers and buyers, within this time frame all the orders of the day must be placed By Any exchange( NSE or BSE).

Yield:

The return on an investment