Briefly explain 20 vocabularies on stock exchange
1. Stock: A share or equity representing ownership in a company and a claim on part of the company's assets and earnings.
2. Dividend: A portion of a company’s profits paid to its shareholders, typically in cash or additional shares of stock.
3. Initial Public Offering (IPO): The first sale of a company's shares to the public, often used as a means of raising capital for growth.
4. Shareholder: An individual or entity that owns shares of stock in a company.
5. Stock Exchange: A marketplace where stocks and other financial instruments are bought, sold, and traded.
6. Market Capitalization: The total value of all the outstanding shares of a company, calculated by multiplying the share price by the total number of shares.
7. Bid Price: The price at which a buyer is willing to purchase a stock.
8. Ask Price: The price at which a seller is willing to sell a stock.
9. Order: A request made to a stockbroker to buy or sell shares on the stock exchange.
10. Market Order: An order to buy or sell shares immediately at the best available price.
11. Limit Order: An order to buy or sell shares at a specific price or better.
12. Volatility: A measure of the degree of price fluctuations of a stock or financial instrument over a given time period.
13. Bull Market: A market condition characterized by rising stock prices and investor optimism.
14. Bear Market: A market condition characterized by falling stock prices and investor pessimism.
15. Index: A benchmark used to measure the overall performance of a financial market or segment, composed of a basket of stocks or other financial instruments.
16. Blue-chip Stock: A high-quality, reliable, and well-established company with a solid financial history, often considered a safe investment.
17. Portfolio: A collection of investments held by an individual or institution, including stocks, bonds, and other financial instruments.
18. Earnings Per Share (EPS): A financial metric used to measure a company's profitability, calculated as the company's net income divided by the number of outstanding shares.
19. P/E Ratio (Price-to-Earnings Ratio): A valuation ratio calculated by dividing the market price of a stock by its earnings per share, used to determine if a stock is overvalued or undervalued compared to its peers.
20. Trading Volume: The number of shares or contracts traded in a security or market during a specific period, often used as an indicator of market activity and liquidity.