Posts

Showing posts with the label GLOSSARY

what is sensex?

The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular...

Stock Investing Glossary

stock investing glossary for your handy reference, 52-Week High/Low: The highest and lowest price at which a stock traded in the past 12 months or 52 weeks Annual Report: An annual publication that public corporations must provide to shareholders to describe their operations and financial conditions Bear Markets: A market condition in which the prices of securities are falling or are expected to fall Blue Chip: A nationally recognized, well-established and financially sound company Bonus Issue: An offer of free additional shares to existing shareholders Bull Markets: A financial market of a certain group of securities in which prices are rising or are expected to rise. Capital Gain: An increase in the value of a capital asset that gives it a higher worth than the purchase price Credit Risk: the risk that the issuer will default or fail to pay the debt. Cyclical Stock: A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down...

STOCK GLOSSARY

Arbitrage : Business of buying in one exchange and selling in another to take advantage of price differences. Auction : A mechanism used by the Stock Exchange to fulfill its obligation to the buyer of a security. It is done when the seller is unable to deliver the scrips sold by him. The security in question is offered by a member who has ready possession of the scrips. Top Bear : An operator who expects the share price to fall Bear Market : A weak and falling market where buyers are absent Blue Chips : Shares of financially sound, well established companies with a track record of good growth and regular payment of dividends. Bonus Shares : Shares allotted to the existing shareholders by capitalising the reserves into additional capital. When market expects a company to come out with a Bonus Issue, the price of the shares normally goes up. Book Closure : A company closes its register of members for updating the records to facilitate payment of dividends or issue of rights of bonus shar...