Stock Market Terms Flashcards
(20 cards)
‘A’ Group Shares
The stock which fall in category of ‘A’ group are the most liquid counters among all the stocks listed in BSE and NSE.
Stocks in group A have a high trading volume and fulfils the compliances of the exchange
Group A shares are considered safe for investing and trading purposes
What are the groups classication in BSE ?
All shares listed on BSE are classified into different groups like A,B,M,T and Z groups
Which stocks are not included in group A?
Companies with a poor compliance record are not included in group A
What are group A stocks?
Group A represents companies that have high liquidity and are traded actively on the exchange
Ad-hoc margin
Adhoc margins refer to additional margins that can be imposed by exchanges on market participants/brokers on an ad hoc basis
spot market
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
The other market is the futures market
Arbitrage
Arbitrage is a function of generating income from trading particular currencies, securities, and commodities in two different markets. The arbitrageurs reap a margin from the varying price of the same commodity in two different exchanges or markets
Ask price
also known as offer price
it is the lowest price that a seller is willing to accept for selling his shares
Auction
when a seller who is not in a position to deliver securities he has sold, the exchange purchases the requisite quantity of the same securities In the auction market and delivers them to the buyer. This process by which the securities are procured on behalf of the defaulter is known as auction.
bear market
sometimes a market goes through a period of months or even years when prices of securities keep going down . Such a downward market is known as bear market
Bid price
It is the highest price what a buyer is willing to pay for buying shares
Beta
Beta is the numberic value which measures the volatility of a security or a portfolio in comparison to the market index.
Bid-ask spread
difference between bid price and ask price
the bid ask spread of a stock is largely dependent on the liquidity - the more liquid a stock , the tighter will be its bid ask spread
what does it mean when we say a stock is more liquid
When we say a stock is more liquid, it means that the stock can be easily bought or sold in large quantities without significantly affecting its market price
Blue chip stocks
Blue chip stock refers to shares of well known established companies. Such companies have a strong history of financial performance. They hold a high level of marketability and liquidity
Book value
Book value of a company is total value of the companies assets , minus the companies outstanding liabilities.. It basically shows the worth of the company if it liquidated all its assets and paid back all its liabilities. Book value is normally expressed on a per share basis.
Breakdown
when a falling stock moves below a support levels, then it is known as a breakdown.
breakout
when a rising stock moves above a resistance levels, then it is known as breakout
Brokerage
commision or fee charged by a stock broker for purchase or sale of securities
Bubble
in market, bubble resfers to a situation where price of a particular stock, sector on entire market rises sharply followed by sudden fall in prices.
