Top 10 Stock Market Terminologies in India

In reality there are more than 100 stock market terminologies but here we are covering top 10 terminologies which are commonly used.

1. Stock: Also known as shares or equity, stocks represent ownership in a company. When you own stocks of a company, you are considered a shareholder and have the potential to benefit from the company’s profits and growth.
2. Stock Exchange: It is a marketplace where stocks, bonds, and other securities are bought and sold. In India, the two main stock exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
3. Sensex: The Sensex, also known as the S&P BSE Sensex, is a stock market index of the Bombay Stock Exchange (BSE) that represents the performance of the top 30 companies listed on the BSE based on market capitalization.
4. Nifty: The Nifty, also known as the Nifty 50 or NSE Nifty, is a stock market index of the National Stock Exchange (NSE) that represents the performance of the top 50 companies listed on the NSE based on market capitalization.
5. Market Capitalization: Market capitalization, often referred to as “market cap,” is the total value of a company’s outstanding shares of stock. It is calculated by multiplying the stock’s current market price by the total number of outstanding shares.
6. Bull Market: A bull market is a period of time when stock prices are rising and investor sentiment is generally optimistic, indicating positive market trends.
7. Bear Market: A bear market is a period of time when stock prices are declining, and investor sentiment is generally pessimistic, indicating negative market trends.
8. IPO: IPO stands for Initial Public Offering, which is the process by which a company goes public and offers its shares to the public for the first time. This allows the company to raise capital by selling shares to investors.
9. Dividend: Dividend is a portion of a company’s profits that is distributed to its shareholders as a form of reward or return on investment. It is usually paid out in cash or additional shares of stock.
10. Blue Chip Stocks: Blue chip stocks are shares of large, established companies with a history of stable earnings, reliable dividends, and a strong market presence. They are considered to be relatively less risky compared to other stocks.