COMMON TERMINOLIGIES OF STOCK MARKET | பொதுவான பங்குச் சந்தை சொற்கள்

 

To have a clear understanding of the stock market, it is better to know about the basic stock market terminologies which you may come across in your trading journey. In this post, we are going to see some of the basic and important terminologies in the stock market in detail.

STOCK MARKET TERMINOLOGIES

BID PRICE: 

It is the maximum price a buyer is willing to pay for a single share of a company.

ASK PRICE:

It is the minimum price a seller is willing to take for a share of a company.

BID-ASK SPREAD:

The difference between the bid price and ask price is called the bid-ask spread.

Bid-Ask Spread signifies the lack of liquidity in the market.

High Liquidity = Low Bid-Ask Spread

Low Liquidity = High Bid-Ask Spread

TICK SIZE: 

Tick size is the smallest price movement a stock will make in the market when it trades.

Eg: if the tick size of a stock is ₹1, then the price of the stock will move up by ₹1 or go down by ₹1 for every trade.

MARKET SENTIMENT TRACKERS:

1. Open Price: The First price of stock upon opening of the exchange at 9:15 AM of a day.
2. Closing Price: The closing price is not the last traded price at the closing of the market at 3:30 PM of a day. It is calculated as the weighted average of all prices during the last 30 minutes of the trading hours.
3. High Price: It is the Highest price traded during a particular trading session.
4. Low Price: It is the Lowest price traded during a particular trading session.

In short, they are known as the OHCL concept, which is applicable for the technical analysis of a stock.

An intraday trader normally looks at a 15-minute OHCL chart whereas an investor or a swing trader looks at the daily or the weekly chart.

1. Volume: The total no. of shares that are traded in a particular time period. If the volume is high then it indicates active participation of traders, if it is low then it indicates poor participation of traders.
2. Delivery: The price of a stock is determined by the Demand-Supply chain in the stock. If the demand is high, and the company's performance is positive, more people buy its stock and the delivery percentage gives a positive note. Suppose if the supply is high, more people sell their stock and the price of the stock goes down, resulting in the negative delivery result.
3. 52 week High/Low: It is the measure of the highest and lowest price at which a stock is traded during the last 1 year / 52 weeks.

There's a good chance that a stock will rise to higher levels if it breaches its 52-week high with high volumes. Stocks that break their 52-week lows on good volumes are weak units.

FIIs & DIIs:

FIIs & DIIs both play an important role in the stock market. They have the ability to change the trend of any stock since they own the majority of the stocks after the retail investors in the market.

1. FIIs: Foreign Institutional Investors (i.e. Investors from other countries ).

    Eg:-

1. International mutual funds.
2. Commercial banks.
3. Hedge funds.
4. Individual investors, etc...

2. DIIs: Domestic Institutional Investors (i.e. Indian Institutional Investors).

    Eg:-

1. Indian Mutual Funds,
2. Banks,
3. Pension systems,
4. Insurance companies, etc...

   

BULK DEAL, BLOCK DEAL & INSIDER TRADING:

1. Bulk Deal: When a single investor buys/sells 0.5% of the company's shares through single or multiple transactions, then it is called a bulk deal.

2. Block Deal: It is a single transaction that involves a minimum of Rs.10 crores. Block deals occur at a separate window provided by the exchange. This window is open for only 35 minutes.

3. Insider trading: These are usually trades done by the promoters or employees of the company. The general public is not a participant in this trading.

Apart from these terminologies, there are more and more terminologies are there, we will see one and one in the upcoming posts. Till that, enjoy this post, see yaa...

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.