Briefly explain 13vocabularies on stock exchange

Answer 1

1. Stock exchange: A marketplace where stocks and other financial instruments are bought, sold, and traded among investors, both individuals and institutions.

2. Stock or Share: A unit of ownership in a company, granting the holder a claim on part of the company's assets and earnings.

3. Initial Public Offering (IPO): The process through which a private company issues its first shares of stock to the public, allowing it to raise capital and become a publicly traded company.

4. Ticker Symbol: A unique abbreviation assigned to each publicly traded company in the stock market, used to identify the stock when buying and selling.

5. Market Capitalization: The total value of a company's outstanding shares of stock, calculated by multiplying the company's stock price by the number of outstanding shares.

6. Dividend: A payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock, as a distribution of its profits.

7. Volatility: A measure of the degree to which a stock's price fluctuates over a period, often used as an indicator of the risk associated with the stock.

8. Price-to-Earnings (P/E) Ratio: A valuation ratio calculated by dividing the current market price of a stock by its earnings per share, commonly used as a measure of a company's worth relative to its earnings.

9. Bull Market: A market in which stock prices are generally rising, and investor confidence is high.

10. Bear Market: A market in which stock prices are generally falling, and investor confidence is low.

11. Short Selling: A trading strategy in which an investor borrows shares of stock and sells them in the hopes of buying them back later at a lower price to make a profit.

12. Trading Volume: The number of shares of a stock that are bought and sold during a specific period, used as an indicator of investor interest in the stock.

13. Stop Loss Order: An order placed by an investor to sell a stock at a specific price, typically below its current price, in order to limit potential losses if the stock's price declines.