Stock Exchange Glossary of Terms for investors

vengabeats

Par 100 posts (V.I.P)
Account
When a brokerage firm admits a client, an account must be opened in the name of the client. The account will reflect activities of the client such as the buying and selling of securities.

Account Statement
A statement that includes all transactions, positions and open orders and indicates the status of a client's account with a brokerage firm.

Accumulated Dividend
A dividend due to stockholders of cumulative preferred stock that has not been paid to them. Until the dividend is paid, it is carried on the corporation's books as a liability.

Acknowledgment
Authentication of a signature on a brokerage document to ensure it is valid and has been sanctioned by an authorized individual. Acknowledgment, for example, is needed when a client wishes to transfer an account from one broker to another.

Across The Board
Movement, up or down, in the stock market that affects nearly all stocks in the same direction. That is, nearly all stocks are gainers (or losers).

Active Market
An active market occurs when a security, or the exchange as a whole, experiences heavy trading volume. The spread between the securities bid and asked price is usually narrower in an active market than in an inactive market.

Agent
"Agent" means a person appointed by a member of a Stock Exchange to act on his behalf for the purposes recognized by a Stock Exchange and includes a sub broker or head of a branch office. Source: Members Agents and Traders (Eligibility Standards) Rules, 2001

Annual Report
Formal financial statements, the Auditors' Report, together with the Directors' Report issued by a company. These financial statements are usually prepared at the close of the company's financial year.

Arbitrage
The simultaneous purchase and sale of the same security on different stock exchanges at prices which yield a profit.

Assets
What the company owns and various debts owing to it.

Balance Sheet
The Balance Sheet is a statement of the Company's financial position at a specific date.

Bear
An investor who anticipates for a decline in stock prices.

Bear Market
A market in which stock prices are declining in general. A serious decline is called a depression. A short decline in a generally rising market is looked upon as a technical correction.

Bid and Asked
The bid is the highest price anyone has offered to pay for a security at a given time; the asked is the lowest price anyone has offered to accept for a security at a given time.

Blue Chip
A large well-established company with a history of profitable operation.

Bonds
Fixed-income securities, which entitle the holder to a pre-determined return during their life and repayment of principle at maturity.

Book Closing
The closure of books by a company to determine the shareholders' rights to receive bonus, dividend, rights, etc. No transfers are recorded during this period.

Boom
Denotes greater activity on the stock exchange.

Bull
An investor who anticipates for a rise in stock prices.

Bull Market
A market in which stock prices are rising in general. If the market is recovering from a deep decline, the early stage of the up trend is called an up reversal, turnaround, rally or recovery.

A very good help for Freshiars in Share market
 
Last edited by a moderator:
Top