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Do you know the meaning of words like bull, bear, upper circuit and square off (AI IMAGE)
highlights
- People’s understanding and interest in the stock market has increased significantly in the last few years.
- It is often seen that many people invest money in the stock market without complete information.
- In such a situation, when it comes to market related words or situations, they are not able to understand them properly and get confused.
In such a situation, when it comes to market related words or situations, they are not able to understand them properly and get confused. For this reason, here we are going to explain to you the meaning of some common words used in the share market in very simple language, so that it can be easy for you to take investment related decisions.
Bullish
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When the market is bullish and the prices of most of the shares keep increasing, it is called bull market. If an investor feels that the share price will increase in the future, then he considers the market to be bullish.
When there is a declining environment in the stock market and the prices of shares start going down, it is called bear market. If the market remains weak for a long time, then it is said that the market is in a bear market.
When an investor closes the deal of his bought or sold shares, it is called squaring off. In simple words, square off is closing the trade after booking profit or loss.
OHLC is made up of four words – Open, High, Low and Close. This means what price a stock started the day at, where it reached its highest and lowest and at what price it finally closed.
Volume
Volume means how much buying and selling of a share took place in a day. The higher the volume, the more activity is considered in that stock.
Upper Circuit / Lower Circuit
There is a limit for daily price increase and decrease for each share. If the stock rises as much as possible on that day, it is called upper circuit and if it falls as much, it is called lower circuit.
Face Value
Face value is the original price of the share, which is decided by the company. It is used in decisions like giving dividend and share split.
Blue Chip Stock
Shares of large, reliable and strong companies are called blue chip stocks. These companies have been performing well for a long time.
Dividend
When a company gives some part of its profits to investors, it is called dividend. This money is received separately from the share price.
Short Selling
In this, the investor first sells the shares, even though he does not own them. Later, when the share price falls, he tries to make profit by buying it cheaply.
Penny Stock
Very low priced stocks are called penny stocks. These usually cost a few rupees or less and involve high risk.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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