10 Basic Terms Stock Market Beginners Must Know

Zee Media Bureau
Mar 16, 2024

1. Intraday Trading

Intraday or day trading refers to when you buy and sell shares on the same day.

2. Buyback

Buyback is a condition when the company decides to repurchase shares from the investors. This results in an increase in the share price of the remaining market shares.

3. Bull Market

The bull market is opposite to the bear market. In a bull market, the price of the stocks is rising continuously.

4. Blue-Chip Stocks

The shares which are known for their quality and growth history are known as Blue-chip stocks. These stocks are the shares of famous companies.

5. Bid-Ask Spread

The bid-Ask spread is the difference between the price of what the seller is demanding and what the buyer wants to pay for the assets.

6. Beta

Beta is the term that defines the weightage of fluctuation of assets in comparison to the market.

7. Bear Market

When the market is on a downward momentum then the condition is called a bear market. But it comes with certain terms like the share price decreases by a minimum of 20 percent.

8. Averaging Down

Sometimes it happens that you purchase shares at a higher price but after that, the price gets reduced. The common strategy is to buy more shares at a fallen price so that the average purchase cost can be lowered. This is called averaging down.

9. Ask

An ask is a selling price at which traders want to sell their shares.

10. Arbitrage

One of the most common terms used in the stock market is arbitrage. It refers to buying an asset from one market and selling it to another at higher prices.

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