9 Stock Market Terms You should know

stock market terms to know

Stock Book always believes in making Stock Market Investments easier and independent for investors. With reference to this goal, following are the simplified versions of stock market terms every investor should know.

  1. Initial Public Offering: A Company’s First issue of shares to general public. Also known as IPO.
  2. BullA Bull believes that prices will rises and therefore, buys shares intending to sell them when the price rises.
  3. BearA Bear believes that the prices will fall and therefore, sell shares intending to buy them when prices fall.
  4. Credit Rating Agencies: Also known as CRA are the agencies which rates the debtors ability to payback the debt by making timely interest payments and likelihood of default.
  5. Bull Market: A market in which share prices are rising
  6. Bear Market: A market in which share prices are falling
  7. Beta: Beta is a measure of systematic risk for Stocks, bonds, debt, as well as portfolio.
  8. Systematic Risk: This is risk which cannot be removed in stock market investments.
  9. Securities: Financial Instruments that represent a creditor relationship with a corporation or government. They represent agreements to receive certain amounts depending on the terms contained in the agreement. 

These are some basic terms worth knowing before making an #Investwise decision.

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