List of Essential Stock Market Abbreviations and Terms India

*List of Essential Stock Market Abbreviations and Terms*-

 * ADR: American Depository Receipt (shares of a foreign company traded in the US)

 * AMC: Asset Management Company (manages investment funds)

 * AMFI: Association of Mutual Funds in India

 * ATM: At-the-Money (option strike price equals the underlying asset's price)

 * BSE: Bombay Stock Exchange (India's oldest stock exchange)

 * EPS: Earnings Per Share (company's profit divided by outstanding shares)

 * ETF: Exchange-Traded Fund (basket of securities traded like a single stock)

 * F&O: Futures and Options (derivative contracts)

 * IPO: Initial Public Offering (a company's first sale of stock to the public)

 * MF: Mutual Fund (professionally managed investment pool)

 * NAV: Net Asset Value (value of a fund's holdings per share)

 * NSE: National Stock Exchange of India

 * OTM: Out-of-the-Money (option strike price is unfavorable to the current asset price)

 * P/E Ratio: Price-to-Earnings Ratio (stock price divided by earnings per share)

 * RBI: Reserve Bank of India (India's central bank)

 * SEBI: Securities and Exchange Board of India (market regulator)

Important Investing Terms

 * Ask: Lowest price a seller will accept for a security.

 * Bear Market:  Period of declining stock prices.

 * Bid: Highest price a buyer will pay for a security.

 * Blue-Chip Stock: Stock of a large, well-established company with a track record of stability.

 * Broker:  An individual or firm that executes trades on behalf of clients.

 * Bull Market:  Period of rising stock prices.

 * Capital Gain: Profit from selling an asset at a higher price than you bought it.

 * Dividend: Portion of a company's profits distributed to shareholders.

 * Index:  Benchmark that tracks the performance of a group of stocks (e.g., S&P 500)

 * Liquidity: How easily an asset can be bought or sold without affecting its price.

 * Portfolio: A collection of investments held by an individual or institution.

 * Risk Tolerance:  An investor's ability to stomach potential losses.

 * Sector:  A group of companies with similar business activities.

 * Volatility:  Measure of how much an asset's price fluctuates over time.

Additional Helpful Terms

 * Beta:  Measure of a stock's volatility relative to the overall market.

 * Day Trading: Buying and selling securities within the same trading day.

 * Diversification: Spreading investments across different assets to reduce risk.

 * Market Capitalization: Total value of a company's outstanding shares.

 * Order Types:  Instructions on how to buy or sell (market order, limit order, etc.)

 * Short Selling:  Betting on a stock's price to decline.

 * Yield:  Annual return on an investment expressed as a percentage.

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