Let's welcome Dinesh, a novice, to the most common terms used in the share market.
1. Stock: Stock can be described as the fundamental ownership unit of a company. It is also known by equity or share.
2. Stock Market: This market is where shares of publicly-held companies can be issued and traded on exchanges.
3. Volatility: The standard deviation of returns measures volatility. It is simply the amount of variation in a trading price range over time.
Simply put, volatality is the act of fluctuating in a stock or market.
4. Liquidity: This refers to how easy it is to buy or sell stock and convert it into cash.
5. Dividend: This is the portion of the company's profit that is distributed periodically to shareholders.
6. Bull Market: Stock prices are expected to rise in a bull market.
7. Bear Market: This market situation is where stock prices are likely to fall.