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Stock Market Terms

IPO, short for Initial Public Offering, is the process through which a private company offers its shares to the public for the first time. It allows the company to raise capital by selling ownership stakes to investors.

Nifty, officially known as the Nifty 50, is a stock market index in India that tracks the performance of 50 large-cap companies listed on the National Stock Exchange (NSE).

BSE, also known as the Bombay Stock Exchange, is the oldest stock exchange in Asia and one of the leading stock exchanges in India. It provides a platform for trading stocks, commodities, and other financial instruments.

A bear market is a prolonged period of declining stock prices, typically defined as a decline of 20% or more from recent highs. It is characterized by negative investor sentiment, widespread selling, and economic slowdown.

Blue-chip stocks

Blue-chip stocks refer to shares of large, well-established, and financially stable companies with a history of reliable performance and dividends. They are considered low-risk investments and are often leaders in their respective industries.

Market capitalization

Market capitalization, or market cap, is the total value of a company's outstanding shares. It is calculated by multiplying the current stock price by the number of shares outstanding and represents the company's size in the market.

Volatility refers to the degree of variation or fluctuation in the price of a security or the overall market. High volatility indicates larger price swings, while low volatility suggests relatively stable prices.

Candlestick chart

A candlestick chart is a type of financial chart used to represent the price movement of a security. It displays the opening, closing, high, and low prices for a specific time period as individual 'candles'.

P/E ratio, short for Price-to-Earnings ratio, is a valuation metric that compares a company's stock price to its earnings per share. It is used to assess whether a stock is overvalued or undervalued.

Book value is the net value of a company's assets minus its liabilities. It represents the theoretical value of a company's equity if all its assets were sold and liabilities were paid off.

Market order depth

Market order depth refers to the level of buying and selling interest for a particular security at different price levels. It provides an indication of the liquidity and depth of the market for that security.

High-frequency trading

High-frequency trading (HFT) is a trading strategy that uses advanced technology and algorithms to execute large volumes of trades at high speeds. HFT firms aim to capitalize on small price discrepancies and market inefficiencies.

A stock split is a corporate action where a company divides its existing shares into multiple shares. It is usually done to increase the liquidity of the stock or make it more affordable to retail investors.

A bonus issue, also known as a stock dividend, is a corporate action where a company issues additional shares to existing shareholders without any cash consideration. It is often done as a way to reward shareholders or increase the liquidity of the stock.

Bearish refers to a negative or pessimistic outlook on the market or a specific security. It indicates an expectation of falling prices or a unfavorable market trend.

Moving average is a statistical indicator that calculates the average price of a security over a specific period. It is used to identify trends, support and resistance levels, and potential entry or exit points.

Support level is a price level at which a security has historically had difficulty falling below. It is considered a potential level of demand that may prevent further downward price movement.

Breakout refers to a significant price movement of a security above a resistance level or below a support level. It is often accompanied by increased trading volume and can signal the beginning of a new trend.

Day low is the lowest price at which a security has traded during a specific trading day.

Stock market index

A stock market index is a statistical measure that represents the performance of a specific segment of the stock market. It is calculated based on the prices of selected stocks and serves as a benchmark to track the overall market.