5 Essential Terms Every Stock Market Beginner Should Know

1. 5 Essential Terms Every Stock Market Beginner Should Know ******************************************************************************** Stepping into the world of the stock market can feel like learning a new language, one filled with unfamiliar terms, acronyms, and jargon that can be overwhelming at first. But there’s nothing to worry about; every seasoned investor once stood where you are. Whether you’re planning to invest for the long term or try your hand at trading, mastering the basics is non-negotiable. In this blog, we have mentioned the essential terms every stock market beginner must understand, equipping you with confidence to navigate charts, news, and investment platforms like a pro. Before diving in, we highly recommend enrolling in a professional stock market course; especially if you are investing in the stock market for the first time. Basic Stock Market Terminology Learning these key terms equips you to invest wisely and build long-term wealth. Share A share, also known as an equity share, represents a portion of ownership in a company. When you buy the shares of a company, you effectively become a part-owner of the company and gain certain shareholder rights. This includes the right to vote in shareholder meetings and a claim to the company’s profits. Bid and Ask Another important term that you should know after completing the online stock investing courseis ‘bid and ask.’ The term ‘bid’ here means the highest price a buyer is willing to pay for a stock at any given moment in time. www.bullspree.com

2. On the other side, the term ‘ask’ means the lowest price a seller is willing to sell the stock at. The bid- ask spread refers to the gap between the bid price and the ask price. Broker A broker acts as a platform provider for the purchase and sale of equity shares and other securities. Stockbrokers typically charge a brokerage fee in return for granting you access to their trading platform. Apart from facilitating the buying and selling of securities, brokers also provide a range of stock market research tools and value-added services to enhance your trading experience. Volume Volume represents the total shares traded during a set period. High volume indicates active trading and market liquidity, while low volume points to limited investor engagement. Liquidity Liquidity is another key term you’ll often come across after completion of thecourse for investment in the stock market. It represents how easily an asset can be purchased or sold in the market without any major changes to its price. Highly liquid stocks can be sold quickly at or near your desired price, while low-liquidity stocks may take longer to sell or might require you to settle for a lower price. Conclusion In the end, learning these basic stock market terms lays the groundwork for smart investing and confident decision-making. Source : 5 Essential Terms Every Stock Market Beginner Should Know www.bullspree.com