100 Stock Market Definitions

 

1–20: Basic Market Terms

Stock – A share representing ownership in a company.
Share – A single unit of stock.
Equity – Ownership value of a company.
Exchange – Marketplace where stocks are bought and sold (NSE, BSE).
Broker – An agent who executes buy/sell orders.
Demat Account – Electronic account to store shares.
Trading Account – Account used to place trades.
IPO – Initial Public Offering; first sale of shares to the public.
FPO – Follow-on Public Offer; company issues more shares after IPO.
Market Capitalization – Total value of a company (price × shares).
Blue-Chip Stock – Large, stable, well-established company.
Mid-Cap – Medium-sized growth company.
Small-Cap – Small company with high growth and high risk.
Volume – Number of shares traded.
Liquidity – How easily a stock can be bought or sold.
Bid Price – Highest price a buyer is willing to pay.
Ask Price – Lowest price a seller is willing to accept.
Bid–Ask Spread – Difference between bid and ask prices.
Circuit Limit – Maximum daily price movement allowed.
Volatility – Degree of price fluctuation.

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21–40: Fundamental Analysis

Balance Sheet – Financial statement showing assets and liabilities.

Income Statement – Statement showing revenue and profit.
Cash Flow Statement – Tracks money entering and leaving the business.
EPS (Earnings Per Share) – Profit per share.
PE Ratio – Price/Earnings; measures valuation.
PB Ratio – Price/Book Value; compares price with asset value.
ROE – Return on Equity; profitability measure.
ROCE – Return on Capital Employed; efficiency measure.
Debt-to-Equity – Measures leverage.
Dividend – Profit paid to shareholders.
Dividend Yield – Dividend as a percentage of the share price.
Book Value – Company’s net worth per share.
Market Value – Share's current price in the market.
Enterprise Value – Company’s total value including debt.
Free Cash Flow – Cash available after expenses.
Moat – Competitive advantage of a company.
Promoters – Original founders/controllers of a company.
Shareholding Pattern – Ownership structure of a company.
Buyback – Company purchases its own shares.
Bonus Shares – Free shares given to shareholders.

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41–60: Trading & Technical Analysis

Support – Price level where buying is expected.
Resistance – Price level where selling is expected.
Breakout – Price moves above resistance with volume.
Breakdown – Price falls below support.
Trend Line – Line showing trend direction.
Bullish – Expectation of price rise.
Bearish – Expectation of price fall.
Pullback – Temporary decline in an uptrend.
Retracement – Correction within a trend.
Reversal – Change in trend direction.
Moving Average – Average price over a period.
EMA – Exponential Moving Average; faster moving average.
MACD – Momentum indicator using two EMAs.
RSI – Indicator showing overbought/oversold levels.
Bollinger Bands – Volatility indicator around moving average.
VWAP – Volume-Weighted Average Price; used intraday.
Volume Breakout – Price moves with high volume.
Candlestick – Chart showing open-high-low-close.
Gap Up – Stock opens significantly higher than previous close.

Gap Down – Stock opens significantly lower than previous close.

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61–80: Market Participants & Orders

Retail Investor – Individual trader.
FII – Foreign Institutional Investor.
DII – Domestic Institutional Investor.
Market Maker – Entity providing liquidity.
Speculator – Trader aiming for quick gains.
Arbitrager – Trader exploiting price differences.
Stop-Loss Order – Order to limit losses.
Target Price – Expected price for exit.
Limit Order – Buy/sell at a chosen price.
Market Order – Buy/sell instantly at current price.
GTT Order – Trigger-based order (Good Till Triggered).
Bracket Order – Entry with SL and target.
Cover Order – Market order with compulsory SL.
Short Selling – Selling first, buying later.
Margin Trading – Borrowed money trading.
Leverage – Amplifying trades using borrowed capital.
Square Off – Closing intraday position.
Delivery Trading – Holding stocks long-term.
Swing Trading – Holding positions for days/weeks.
Scalping – Very short-term small-profit trades.

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81–100: Advanced & Professional Terms

Beta – Stock’s volatility compared to market.
Alpha – Excess return above benchmark.
Hedge – Strategy to reduce risk.
Arbitrage – Risk-free profit from price difference.
Derivatives – Financial contracts like futures & options.
Futures Contract – Agreement to buy/sell later at fixed price.
Options Contract – Right, not obligation, to buy/sell.
Call Option – Right to buy at a set price.
Put Option – Right to sell at a set price.
Strike Price – Price at which option can be exercised.
Premium – Price paid for the option.
Open Interest – Number of active derivative contracts.
Gamma – Rate of change of delta in options.
Theta – Time decay in options pricing.
Vega – Sensitivity of options to volatility.
Implied Volatility (IV) – Expected future volatility.
Volatility Crush – Drop in IV after major event.
Index – Basket of stocks representing market (NIFTY, SENSEX).
ETF – Exchange-Traded Fund tracking an index.
NAV – Net Asset Value; unit price of a mutual fund.