If you're new to investing and have trouble understanding stock market terminology, we've got you covered. india Herald discusses five key stock market concepts that any newcomer should understand.

Stock Portfolio
A stock portfolio is the collection of investments made by an individual or entity. These include equities, bonds, mutual funds, and other financial instruments. Even while a portfolio includes all of your investments, they may not be housed in a single account. Building a stock portfolio is important because it allows you to diversify your assets and spread your risk among stocks, bonds, and other forms of investments that you choose to make.

Bear market and Bull market
A bear market is characterised by the expectation that prices would decrease. This signifies that key indices or equities are down by 20% or more from their recent highs. A bull market, on the other hand, is a market environment in which prices are predicted to climb and can result in gains of 20% or more.

Buyback
Buyback refers to the process by which a firm repurchases its outstanding shares in order to lower the number of shares on the market. In addition, the corporation distributes earnings to its investors, which raises the value of the remaining shares.

Day trading
When shares of stocks are bought and sold within a single day, it is called day trading.

Debt-to-equity ratio
The debt-to-equity ratio is a measure of a company's debt in relation to its equity. This indicates that it is the worth of a company's assets minus its liabilities, as determined by dividing total debt by total shareholder equity. A larger debt-to-equity ratio indicates that the corporation may have more difficulty meeting its liabilities.

మరింత సమాచారం తెలుసుకోండి:

Stock Market

G GOWTHAM

29/01/2024 11:33 AM