1.

Stock/Share

 A stock (or share) represents ownership in a company. When you buy a stock, you own a
part of that company, which entitles you to a portion of its profits (dividends) and gives
you voting rights (for common shares).

2. Market Capitalization (Market Cap)

 The total value of a company’s outstanding shares, calculated as the stock price
multiplied by the number of outstanding shares. It indicates the company's size and
overall market value.

3. Initial Public Offering (IPO)

 The process by which a private company offers its shares to the public for the first time.
Investors can buy shares in the company, giving it access to capital for expansion.

4. Dividend

 A portion of a company’s profits paid to shareholders, usually on a quarterly basis.

Companies with steady profits may distribute dividends as a way to reward shareholders.

5. Bull Market

 A period in which stock prices are rising or expected to rise. Bull markets often indicate
investor confidence and are associated with economic growth.

6. Bear Market

 A period in which stock prices are falling or expected to fall. Bear markets often indicate
investor pessimism and may be associated with economic downturns.

7. Bid and Ask Prices

 Bid Price: The highest price a buyer is willing to pay for a stock.
 Ask Price: The lowest price a seller is willing to accept. The difference between the bid
and ask prices is known as the “spread.”

8. Volume

 The number of shares traded during a specific period. High trading volume can indicate
strong interest in a stock, while low volume may indicate less interest or liquidity.

9. Blue-Chip Stocks
  Shares of well-established, financially sound companies with a long history of stable
earnings. Examples include large corporations like Apple, Microsoft, and Coca-Cola.

10. Penny Stocks

 Low-priced stocks (often below $5 per share) with high volatility. They carry high risk
and are often issued by smaller companies.

11. Earnings per Share (EPS)

 A measure of a company's profitability, calculated by dividing net earnings by the

number of outstanding shares. Higher EPS generally indicates greater profitability.

12. Price-to-Earnings (P/E) Ratio

 A valuation metric calculated by dividing the stock’s price by its earnings per share. It
shows how much investors are willing to pay for each dollar of earnings. A high P/E
might mean the stock is overvalued, while a low P/E could indicate undervaluation.

13. Price-to-Book (P/B) Ratio

 A ratio that compares a stock’s market value to its book value (assets minus liabilities). It
helps investors determine if a stock is undervalued or overvalued.

14. Return on Equity (ROE)

 A measure of a company's profitability relative to shareholders' equity. It shows how well

a company is using its equity to generate profit.

15. Market Order

 An order to buy or sell a stock immediately at the current market price. Market orders are
executed quickly but may be at a less favorable price due to rapid price changes.

16. Limit Order

 An order to buy or sell a stock at a specified price or better. Limit orders give investors
more control over the price at which the trade is executed.

17. Stop-Loss Order

 An order to sell a stock once it reaches a specific price, used to limit an investor's loss.
This helps protect against excessive losses during market declines.

18. Capital Gains

  The profit made from selling a stock for more than its purchase price. Capital gains are
typically subject to taxation.

19. Yield

 The income return on an investment, usually represented as a percentage. For stocks, it

generally refers to the dividend yield, which is the annual dividend divided by the stock
price.

20. Volatility

 A measure of how much a stock's price fluctuates over a period. High volatility stocks
have significant price swings, while low volatility stocks have more stable prices.

21. Index

 A group of stocks representing a segment of the stock market. Popular indices include the
S&P 500, Dow Jones Industrial Average, and FTSE 100. Indices give an idea of the
overall market trend.

22. Sector

 A grouping of companies that operate in the same industry or market. Examples include
technology, healthcare, finance, and consumer goods.

23. Short Selling

 The process of borrowing shares to sell them, hoping to buy them back later at a lower
price to profit from the difference. It’s a risky strategy because losses are theoretically
unlimited if the stock price rises.

24. Liquidity

 The ease with which a stock can be bought or sold without affecting its price. Highly
liquid stocks can be traded quickly and efficiently, while illiquid stocks may be harder to
sell.

25. 52-Week High and Low

 The highest and lowest price a stock has traded at in the past 52 weeks. This range gives
insight into a stock’s performance over the past year.