stock market for beginers - 3

Stock market for beginners - 3


Share holder - 

Any individual, corporation or any institution buys one or more shares in a private or government company, it is called share holder.

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Broker -. 

A Broker is an individual or an organization who is a registered member of the stock exchange. , They can buy and sell share market on behalf of their clients, and in return they charge commision.


Bluechip stocks -. 

These are reputated companies, which have been in the market for a long time. These companies are fundamentally strong companies. These companies survive well even on bad days. Their growth return is quite good, and the risk in these companies is also low.

Demat and trading account -


Demat account is also like a bank saving account, the way we keep money in the bank, in the same way the shares are kept in the demat account. The share is in the buying and selling trading account. Demat and trading account in india is zerodha kite, 5 paisa, kotak securities, upstox etc.

Volatility-. 

How much the share price goes down is called volatility.


Enterprises value -. 


This is a very important concept, it shows you the take over of the company. enterprises value formula is
Ev = market cap + debt - cash & cash equivalents

By an example, if we want to buy a company, then we will have to buy all the stocks of that company, all the loans and debts of the company will be ours. We have to fill all the debts. Similarly, the company's cash and cash equivalents (which can be easily converted into cash) will also belong to you. Enterprises value is also important because debt is also added to it, so that we know the true condition of the company.

Face value - 


When a company starts, the owner of the company decides the price of the share, the same price is called face value.

Dividend yield -.


 How much dividend a company is paying on current is called dividend yield.
Suppose the current share price of the company is 100 rupees and if the company is giving a dividend of 5 rupees then the formula is
Div. Yield = dividend / market price


Bid - 


bid means bid. Bid on something The price at which the buyer wants to buy shares is called bid.

Ask -

. Ask means the price at which the seller wants to sell, it is called ask.

Trade -. 

From 9.15 am to 3.30pm on the whole day, shares of a company were bought and sold, it is called trade.

Share market beginners


Previous high -

 In the past day, the high price that a company's stock or index had, we will call the previous high.


Previous low - 

In the past day, the low price of a company's stock or index, we will call it previous low.


Margin -. 

Whichever demat account you use, your broker gives you a limit, gives you some extra money, so that you can trade. The money the broker gives you is called margin.

Trade -. 

From 9.15 am to 3.30pm on the whole day, the quantity of shares of a company bought and sold is called trade.

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