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Basic Terms of the Stock Market Every Beginner Should Know

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Flat-style educational banner showing stock market elements like bullish trends, charts, and beginner-friendly icons for terms like shares, IPO, and indices.

📘 Basic Terms of the Stock Market Every Beginner Should Know

“Learn the language of the markets, and you’ll never feel lost again.”

When you're just starting your stock market journey, all the strange-sounding words can feel overwhelming. But don’t worry — once you understand these basic terms, the whole picture starts becoming clear. 👇

📚 Let’s Understand These Terms One by One:

  1. Stock (or Share) – When you buy a stock, you're buying a tiny piece of a company. It’s like owning 1 slice of a big pizza 🍕 — if the pizza is tasty (profitable), your slice becomes more valuable.
  2. Equity – Just another fancy word for stocks. It means ownership in a company.
  3. IPO (Initial Public Offering) – When a company sells its shares to the public for the first time — like making a private shop into a public mall. 🏬
  4. Stock Exchange – This is the marketplace where people buy and sell shares — in India, the two main ones are NSE and BSE. Like D-Mart for stocks!
  5. Broker – A middleman (like Zerodha, Groww, Upstox) who helps you buy or sell shares online.
  6. Demat Account – A digital locker where your shares are stored safely — no physical papers anymore!
  7. Trading Account – This is the account you use to place orders — like buying or selling shares.
  8. Bull Market – When prices of shares keep rising — like the market is “charging ahead” like a bull 🐂.
  9. Bear Market – When prices keep falling — like the market is going to sleep like a bear 🐻.
  10. Market Capitalization (Market Cap) – The total value of a company’s shares. Big companies like Reliance have a huge market cap.
  11. Blue Chip Stocks – Top-quality, reliable companies that perform well even during tough times — like Tata, Infosys, HDFC, etc.
  12. Dividends – A part of the company’s profit shared with shareholders — like bonus pocket money 💰.
  13. Portfolio – Your collection of investments — all the shares you own.
  14. Volatility – How fast or how much the prices are going up and down. A rollercoaster market = high volatility 🎢.
  15. Liquidity – How easily you can buy or sell a stock without affecting its price. Higher liquidity = smoother trading.
  16. Intraday Trading – Buying and selling the same stock on the same day — like trading in a flash ⚡.
  17. Delivery Trading – Buying a stock and holding it for more than a day.
  18. Sensex / Nifty – Indexes that show the performance of top companies in the market — like a market scoreboard 🧮.
  19. P/E Ratio (Price-to-Earnings Ratio) – Used to find if a stock is cheap or expensive. It compares the price of a share to the company’s earnings.
  20. Volume – The number of shares bought or sold during a time. High volume means high interest in that stock.

✅ Why These Terms Matter

If you know what these words mean, you won’t feel lost in the market. You’ll read news, analyze stocks, and understand trades better. Knowledge = power. 💪

📚 Join my Telegram channel for educational stock market insights and research:
👉 https://t.me/Investtrade_by_Ankit

⚠️ This is for learning purposes only. Please do your own research before making any investment decisions.

Author: @nkit

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