Glossary of stock market terms
Average Also known as an index, it is Stok mathematical calculation that indicates the value of a group of securities. Average Life An estimate of the time to maturity for a pool of mortgage-backed securities. Average Maturity The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with a longer average life. Average Volume Average volume is calculated by dividing the total volume for the previous three months by the number of trading days in the period. Compare this number to the daily volume to see if interest in the security has increased or decreased.
The issuer has to pay fees to be listed in the stock exchange and abide by the regulations of the stock exchange to maintain listing privilege.
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Market Capitalization: It is calculated by multiplying all the outstanding shares with the current market price of one share. Mutual Fund: A pool of money managed by experts by investing in stocks, bonds and other securities with the objective of improving their savings. These experts will create a diversified portfolio from these funds. Odd Lot: A number of shares which are less than or greater than but not equal to the board lot size.
About the Glossary
For example, if the board lot size is shares, an odd terjs would be 95 or shares. Usually odd lots are difficult for trading and it is not accepted easily in the market. One-sided Market: A market that has only potential sellers or only potential buyers but not both. For call options, this means the stock price is below the strike price. For put options, this means the stock price is above the strike price. Holding of any individual or institution. A portfolio may include various type of securities of different companies operating in different sectors.
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Positions Limit: Maximum number of futures and options contract that any individual investor can hold at any given point of time. Pre-opening Session: The pre-open session is for duration of 15 minutes i. In pre-open session order entry, modification and cancelation takes place. A valuation of companies last traded share price to its latest reported 12 months earnings per share. Put Option: An option that is given to investor the right to sell a particular stock at a stated price within a specified time period.
Put option is purchased by those who believe that particular stock price is going to fall down than the stated price. A probable chances Stpck investments actual returns will be reduced then as calculated. Risk is usually measured by calculating the standard deviation of the historical price returns. Standard deviation is directly proportional to the degree of risk associated. The amount by which an investment's selling price exceeds its purchase price. The total value of the company in the stock market.
Capital loss: The negative difference between the selling price of the stock and purchase price of the stock. Capital Market: Find out more Fibonacci retracement definition A Fibonacci retracement is a key technical analysis tool, used to gain insight into when to place and close trades, or place stops and limits. Find out more Fill definition Fill is the term used to refer to the satisfying of an order to trade a financial asset. However, it is worth noting that there is no guarantee that every trade will become filled. Find out more Financial instrument definition A financial instrument is a monetary contract between two parties, which can be traded and settled.
The contract represents an asset to one party the buyer and a financial liability to the other party the seller.