What Is the Stock Market?

The stock market is an exchange that allows people to sell and buy stocks and companies to issue stocks to masses. A stock represents the organizationʹs value, and shares are pieces of the organization.

At the point when individuals talk about purchasing and selling stock, they imply that theyʹve purchased or sold at least one or more shares of a specific stock. The reason for the trader is to make a profit.

What Do Stock Trading Terms Mean?

Stock market terms are an industry-specific language for the securities business. Whenever specialists and amateurs talk about exchanging stocks, they utilize these stock market terms to talk specifically about systems, charts, patterns, files, and other components of the stock trading industry.

Learning stock market terms will enable you to quicken the learning procedure. Some stock market terms, for example, bull and bear, which will be covered below additionally apply to other investment vehicles, for example, real estate. These terms and stock tips can prove to be useful.

Key Basic Stock Market Terms

Let’s look at the absolute most essential stock exchange terms youʹll experience as you figure out how to exchange trade stocks.

Annual Report

A yearly report is a report arranged by an organization that is planned to inspire shareholders. It contains huge amounts of data about the organization, from its income to its management methodology. When you read a yearly report, youʹre making a decision about the organizationʹs dissolvability and monetary circumstance.

Read More: Stock Tips that should be followed by New Investors

Averaging Down

At the point when an investor purchases more of a stock as the cost goes down. This makes it so your normal price tag decreases. You may utilize this strategy in the event that you trust that the general consensus about an organization isnʹt right, so you anticipate that the stock cost should bounce back later.


An estimation of the connection between the cost of a stock and the movement of the whole market. In the event that stock XYZ has a beta of 1.5, that implies that for each 1 point move in the market, stock XYZ moves 1.5 focuses, and the other way around.

Blue Chip Stocks

The stocks behind vast, industry-driving organizations. They offer a steady record of significant profit instalments and have a reputation for sound financial management. The expression is thought to have been derived from blue gambling chips, which is the highest denomination of chips utilized in the club.

Read More: Ways to Learn Share Market Trading as a Newbie


This stock market term is somewhat murky. Actually, itʹs simply one more name for the stock market and originates from a house in which rich men accumulated to trade shares. However, when you hear it in the present discussions about the stock market, it for the most part either refers to the Paris stock trade or to a non-U.S. stock exchange.


A person who sells and buys an investment for you in exchange for some amount of a fee or commission is a broker.


The offer is the measure of cash a trader is eager to pay per share for a given stock. Itʹs balanced against the asking price, which is the thing that a seller wants per share of that equivalent stock, and the spread is the contrast between those two costs.

Day Trading

The practice of purchasing and selling within a similar trading day, before the close of the markets on that day, is called day trading. This is my essential trading strategy, in spite of the fact that I have a long-term portfolio, also. Traders who take an interest in day trading are frequently called "active traders" or "day traders"


A bit of an organizationʹs profit that is paid to investors, or individuals that possess that companyʹs stock, on a quarterly or annual basis. Not all companies pay profits. For example, in the event that you exchange penny stocks, youʹre likely not after profits.


At the point when an order to purchase or sell has been finished, the broker has executed the transaction. In the event that you put in a request to sell 100 shares, this means every one of the 100 shares has been sold.


The price movements of a stock or the stock market keep changing. Very unstable stocks are those with extraordinary daily up and down movements and wide intraday exchanging ranges. This is frequently basic with stocks that are thinly exchanged or have low trading volumes.

Read More: The Golden Rules of Investing


The number of shares of the stock traded during a specific timeframe, normally estimated in average daily trading volume. Volume can likewise mean the number of offers you buy of a given stock. For example, purchasing 2,000 shares of a company is a higher-volume buy than purchasing 20 shares.

Realizing your stock market terms will make you a much better trader. It requires investment to get a handle on the complexities of securities trading, yet once you do, the stock market terms above will turn out to be a piece of your everyday vocabulary.

Taking the test yourself on stock market terms until youʹre highly acquainted with them all. You can likewise investigate other financial exchange terms as they spring up in your examination so you donʹt get confused.

In case youʹre keen on figuring out how to trade stocks, consider applying and attending our seminars on stock and trade by Aryaa money, learn share market by one of the best and experienced share market trader.

Author's Bio: 

Aryaa Money is Investment consultancy and Training Institute engaged in Stock, Commodity, Forex market trading, training and consultancy services. Aryaa Money : Trading & Training Institue Is ISO 9001:2015 Certified ISO 9001:2015 is a globally perceived standard for Quality Management Systems (QMS)