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The meaning of the word used in the share market in simple language

The meaning of the word used in the share market in simple language


The meaning of the word used in the share market in simple language

In today's post, I am going to tell you about some of the words used in the stock market and their meaning, which are mostly heard at the beginning of investment.

And those who do not know the meaning will be very useful for beginners and you must know the basic word so that you know what it is?

And these stock market terminology is going to give you a lot of knowledge which will help you in trading. 

What Is Intraday Trading

Intra-day i.e. the day we buy the stock and when you buy the share, you will get to see that option. But if you select Intra-Day, then you will have to buy and sell it at the time of the market. Right now the market opens at 9:15 am and closes at 3:30 pm.

And the shares you buy will have to be sold at 3:30 pm. If you have selected Intra-Day. But this does not happen in delivery. Remember that everyone has charges.

Intra-day, delivery trading futures and options, call & tread charges all have different charges. Which is used in both buy and sell.


 (What Is Delivery Trading?)

Delivery trading means that you are buying a stock today and selling tomorrow, day after tomorrow, a month later, a year later is called delivery trading. If you hold it for more than a day, then it is delivery trading. Buying today and selling anytime after today is delivery trading.


What Is Commodity?

Commodity means that we buy everyday useful goods such as grains, gold, oil, spices, and it is also bought and sold in the lion market, it is called commodity. Commodity means any commodity. The Government of India allows about 120 commodities. It is also a different platform for trading.


What is a broker?

Broker means a company or a person who is registered and is eligible to buy and sell stocks or any instrument.

He is a broker. Who is NSE/NSE? It is worth buying from BSE and selling to the public and it takes some momentum, which is called brokerage.

What Is Demat Account & Trading Account ?)

Demat account and trading account are necessary to trade in stocks and that is the first step.

Just as we keep money in the savings account in the bank in demat account, we have to keep money to invest. So that we can buy anything.

In a trading account, what we buy is the store from which we can trade. What we buy comes in a trading account that we can sell at any time.

GrowwOpen Demat Account (100Rs GIFT)
UpstocksOpen Demat Account (1 Month Free)
Open Your Demat Account'

What Is Portfolio ?

Portfolio means all the investments of different types. If you have bought shares of 10 companies, then it is your portfolio. Therefore, it is said that the portfolio should be made good and which is the best portfolio. What is the portfolio of successful inverters? Shows all the investments that are held in the portfolio.

What Is Margin Trading ?

Margin trading means if you have 1000 rupees and you have to buy 2000 lions and the broking company lends you to buy a lion, it is called margin trading. Many broking companies offer this facility.


What Is Sensex & Nifty ?

There are many companies listed on BSE and NSE, so you can not see the data of all the companies that are going on in the market, then Sensex and Nifty are a type of index.

Sensex is a short form of sensitive index. which represents BSE. Which tells the index of the top 30 companies. Which tracks the top companies of every sector.


Nifty i.e. National 50 Company Index which represents NSE, which tracks the top 50 companies.

What Is BSE & NSE ?

  • BSE Full Form : Bombay Stock Exchange
  • NSE Full Form : National Stock Exchange

Both of these are stock markets in which the company is listed and the public can take a stake in the company from there by taking shares.

Whatever shares are available in the market, they are available through them. The company lists itself on NSE or BSE and launches an IPO, then it reaches the general public from the broker.

  • BSE's index is Sensex and it creates an index of 20 companies of the top companies in all sectors.
  • Nse's Nifty index is also called Nifty 50 which looks at the index of 50 companies.

What Is Square Off?

Square Off means selling the shares we have bought in the stock market i.e. square off. It is said to square off your position.

What is a Bull? 

Bull /Bullish means if someone thinks that the market is going to go up, or the price is going to increase, then it is called bull thinking.

It is on the thinking of every human being, if someone says this, then he is going to buy shares and then the shares are bought a lot because there are chances of profit.

What Is Bear ?

Beer means when someone thinks that the market is going to fall, that means the price is going to decrease, then he is called beer. People sell shares because there is no loss when they are scared. But some people take advantage of it and buy it at a lower price. And if the price is increasing continuously

So they hold that they do not buy at that heavy price. Because you have to pay more money. And when the market starts falling a little, then sell and make profits.

What Is Market Order ?

Market order means you are buying a stock at the same price that is running in the market.

When you buy shares, there are two options at which price you want to buy! If at the market price, then at the same time you will get the stock at the price that is running. It is used both while buying and selling.

What Is Limit Order?

Limit order means that if you write down the price at which you want to buy or sell a lion, then your order will be confirmed as soon as that price is.

If you want to buy a share in 355, then you will place a 345RS order and if it is 345 then you will get that lion. That's how it sells. That's the limit order.

What Is Correction ?

Correction means if the lion price has gone down and it is slowly coming up, that is, the market is taking a little position back, then the process that is going well is called correction.

What Is Short Selling?

Short selling means selling the shares we don't have! So this would seem strange to you, wouldn't it? How can we sell shares that we don't have?

So in short selling, the share is borrowed from the broker for the purpose that the price is going to decrease in the future.

So we will borrow it from the broker and sell it now and buy it when the price is low. So there is also a time limit. And by selling lions at a higher price and buying at a lower price, we earn a middle profit. But we will have to buy those shares later.

  • Example: Infosys shares are currently running at Rs 100 and you are short selling 10 shares. And when that share is worth Rs 90, then you will take it. So you will get a profit of 10 lions on 10 lions i.e. a profit of 100 rupees.

Short selling is not always beneficial. Sometimes you will have to suffer a lot of losses due to the increase in prices.

What is call trade?

Call trade means you do it with the help of a trading call. That is, if you want to buy or sell something, then you can buy or sell by calling the broker. But there are different extra charges that the broker tells in advance.

What is a crash?

Crash means a large drop in price. You must have heard that the market crashed and we were ruined. That is, there was a huge decline in the market. Which takes time to recover. But that happens sometimes.

What is an IPO?

IPO stands for Initial Public Offering. When the company needs more funds, it is listed on the stock exchange and releases its IPO for the public.

Which makes him take more money. Those are shares, whoever invests in it is called a shareholder of the company. That is, even if there is a profit, the investor has to suffer and if there is a profit, the investor benefits.

This is not a loan or obligation, so there is no interest in it. But if the company makes a profit, then it gives a dividend and sometimes gives bonus shares.

The IPO does not mean that when the company will declare a profit, then it will be beneficial, you can sell those shares at any time and take back your stake. With the help of a broker in the open market, you can do it anytime.

    Example: If you trade with Grow and Upstox applications, then there is an option to apply for an IPO in that application and sell anytime.

    What is bonus share?

    Bonus share means if you have a lion in any company, then that company sometimes gives bonus shares in the form of dividends for free. This will benefit you by increasing the shares, so that you can sell and take a profit or keep investing, which happens that you get more shares in less money.

    Just like the Tata company gave 3 bonus share to its shareholder for 1 lions, then if you have 300 lions, then you get 100 shares for free. Without any extra investment. If Tata's lion price is running at Rs 50, then you can take advantage by selling 5000 lions for Rs 100. Otherwise, you can also hold it.

    What is a shareholder?

    The shareholder i.e. whoever has bought shares of a company is a shareholder of that company. For that, he needs to have a lion, there is no ESA, you bought it and sold it. If you hold the lion of the company in the current, then you are the shareholder of that company.

    What is dividend?

    Dividend means that the company whose shares you have taken gives dividends from its profits. You do not get interest on investing on taking shares, you get dividend. Which is not necessary that every company has to pay every year, that company can give whenever it wants, even if it does not want to give, but if a company does not give dividend, its price keeps decreasing in the market, then no one invests, so it has to keep its performance good.

    What is public float?

    Public float means the shares of a company that you can buy or sell at any time. It's called public float.

    What is Market Capitalization?

    Market capitalization refers to the value of the total shares of a company currently running in the market. Market capitalization is also called market cap. With the help of market cap, the company is divided into three parts. Large cap, mid cap and small cap. Those whose size is large are in large and those who are small come in small cap. And in the medium mid-cap. In large caps, risk is low, so profit is also average. In small, the risk is high and the probability of growth is high and if this happens then the profit is also high.

    What is blue chip stock?

    Blue chip stocks are the shares of a company that has a large cap in the market, and their record is very good, in which the risk is low and is the first choice of the investor. Whose market capitalization is large. Which also gives more dividends. There is a lot of fluctuation in their share price. Everyone's first choice is blue chip stocks.

    These were some of the simple meanings of the word very much used, which you must have heard many times.

    So to start, you should know this basic so that you know what you have to invest in and how to do it? If you have any questions, you can ask in the comment and comment about which you want to know in detail.

    If you find something wrong in this, then definitely comment and you can also give topic suggestions.

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