Basic Terms Of Stock Market

1. Initial Public Offer (IPO) - When a company first offers its shares to the public instead of owning them.

2. Promoters - Promoters are people who persuade people to invest money when a company is founded.

3. Earnings per share (EPS) - The total net income of a company is obtained when divided by the total no. The remaining parts. The higher the profit, the higher the EPS, the better the company's profitability.

4. Dividend - A portion of a company's earnings distributed among shareholders. Calculated at face value.

5. Volume - no average Shares sold on the market on a certain day or at a certain time.

6. Daily Trading - When a particular script is bought and sold on the same day.

7. Nominal value - The nominal value of the share specified in the share certificates.

8. Stock Market Price (MPS) - The price at which shares are currently traded on the stock exchange.

9. Market value - The market value of the company by multiplying the MPS by the total no. shares.

10. P / E ratio - Price Profit ratio is the ratio of a company's current share price (MPS) to earnings per share (EPS).

11. Industry P / E - The sum of the P / E ratios of all companies when divided by No. From companies. The industrial P / E ratio is obtained. Helps determine if a company's share is currently valued or underestimated.

12. Bonus Shares - The issue of bonus shares is called a bonus share issue or a bonus issue. The bonus issue is usually based on the number of shares that shareholders already own.

13. Divided Shares - The procedure by which a company decides to divide its existing shares into a large number. shares. The nominal value of the shares changes, but the market value changes. remains the same.

14. Right Shares - Shares are issued to existing shareholders to purchase additional shares of the company at a certain price that is generally lower than the current market price of the shares.