• Stock (Share)

A unit of ownership in a company. Owning a stock entitles you to a portion of the company’s profits and assets.

• Bull Market

A market condition characterized by rising stock prices and general investor optimism.

• Bear Market

A market condition where stock prices are falling and investor sentiment is pessimistic.

• IPO (Initial Public Offering)

The process by which a private company offers shares to the public for the first time to raise capital.

• Dividends

A portion of a company’s earnings distributed to shareholders, usually in cash or additional shares.

• Market Capitalization (Market Cap)

The total value of a company’s outstanding shares, calculated by multiplying the current stock price by the total number of outstanding shares.

• P/E Ratio (Price-to-Earnings Ratio)

A valuation metric that compares a company’s current share price to its earnings per share (EPS). It indicates how much investors are willing to pay per dollar of earnings.

• EPS (Earnings Per Share)

A company’s profit divided by the number of outstanding shares. It measures the profitability of a company on a per-share basis.

• Volume

The number of shares traded during a specific period. High volume can indicate strong interest in a stock.

• 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 for a stock.

• Spread

The difference between the bid price and the ask price. It represents the transaction cost of trading a stock.

• Dividend Yield

The annual dividend payment divided by the current stock price, expressed as a percentage. It indicates the return on investment from dividends alone.

• Blue Chip Stocks

Shares of large, well-established, and financially sound companies with a history of reliable performance and dividend payments.

• Sector

A group of stocks that operate in the same industry or market segment. Common sectors include technology, healthcare, financials, and energy.