Stocks: Also known as shares or equities, stocks represent ownership in a company. When you buy a stock, you become a shareholder and have a claim on the company's assets and earnings.
Stock exchanges: These are physical or electronic marketplaces where stocks are bought and sold. Examples include the New York Stock Exchange (NYSE) and the Nasdaq.
Stock indices: Indices track the performance of a specific group of stocks. They provide an overview of the overall market or a particular sector. Well-known indices include the S&P 500, Dow Jones Industrial Average (DJIA), and the Nasdaq Composite.
Bull market and bear market: A bull market refers to a period of rising stock prices, typically accompanied by optimism and investor confidence. In contrast, a bear market is characterized by falling stock prices and pessimism.
Stock price: The price at which a particular stock is trading on the stock market. Stock prices fluctuate throughout the trading day based on supply and demand.
Market capitalization: Market cap is the total value of a company's outstanding shares. It is calculated by multiplying the stock price by the number of shares outstanding.
Dividends: Some companies distribute a portion of their earnings to shareholders in the form of dividends. Dividends are typically paid quarterly and are often seen as a way for companies to share profits with their investors.
Stockbroker: A stockbroker is a licensed professional or firm that facilitates the buying and selling of stocks on behalf of investors. They may provide investment advice and execute trades on various exchanges.
Volatility: Volatility refers to the degree of price fluctuations in a stock or the overall market. Highly volatile stocks can experience rapid price swings, while low-volatility stocks tend to have more stable prices.
Fundamental analysis: A method of evaluating stocks by examining a company's financial statements, management, competitive position, and other relevant factors to determine its intrinsic value.