stock market for beginers - 5

Basic terms in stock market

Trend - 

Trend tells us the movement of a share or index whether the share or index is uptrend or down trend.

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Promoters - 

Promoters are the owners of the company.  promotors shareholding means that the owner of the company holds a stake in the company.  Why is this important now?  If there is more shareholding company of promoters then this is a good sign because if you trust your company then people will also trust you.  But if the share holding of promoters is less, then it is a clear indication that the owner of the company does not trust the company, then people will not trust either.

 Pledged - 

Pledged means mortgaging something.  The owners of the company pledge their shares for their personal or company, so that they take loans when they need money.  And the deal between promoters and the bank is that if we are unable to pay, then you will sell the share and complete your money.  When the company pledged its shares, the share prices fall, causing them a lot of loss and sometimes the company goes bankrupt.

 Retail investor -

 retail investor is individual like you and me.  These are very small investors. Retail investors buy shares for their personal accounts.

 Institutional investor - 

institutional investor means an institution.  Such as mutual fund, pension fund, insurance company.  Those who invest for their portfolio or logo. Institutional investors buy larger shares as compared to retail investors because they have fund of logo.  And it is an entire institution. The institutional investor has his own research team which invests in a company after doing all the analysis.

 Fii– foriegn institutional investor.  

Those who invest in other countries' institutional, ie India, are called foreign institutional investors.  fii invest in large capital When they invest in India, the shares of that company pick up fast.  So investors keep a close watch on the activity of fii.

 Dii - domestic instituitonal investor.  

When India invests in the institutional Indian market, they are called domestic institutional investor.

 Insurance company - 

insurance company in share holding means how many shares the insurance company has bought in that share.  The company in which the insurance company has bought more shares means that they have a lot of confidence in that share that it will give good returns in future.

 Mutual fund -

 share holding, mutual fund means that the fund manager of the mutual fund has shown how many% trust in that company.  The fund manager who is very experienced takes money in a stock after doing all the research.

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