Jargon Wagon: 20 Common Stock Market Terms to Know

If words like “bullish market,” “P/E ratio,” or “volatility” have left you scratching your head, this video is just what you need! Join us as we cover 20 essential stock market terms for every aspiring investor.

First, we’ll introduce the basics of the stock market—what it is, how it works, and the role of stock exchanges like NSE and BSE. Then, you’ll get a grip on terms like bull and bear markets, market indices, and how market prices fluctuate based on demand and supply.

Next, the video will take you through how trading works. We start with SEBI—the regulator and move to important facilities like demat and trading accounts. We'll also break down terms like bid/ask prices, and brokers. You’ll also get to know about how market orders and limit orders are different.

Finally, we’ll help you make sense of key financial indicators such as portfolio, market cap, dividends, volume, and the P/E ratio. These concepts could help you evaluate companies better and build a more balanced portfolio.

Whether you’re a curious beginner or someone brushing up on the basics, this glossary-style guide could simplify the stock market for you. Stay tuned to Academy for more investment insights.

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Key Takeaways

The stock market is a platform where buyers and sellers trade shares for potential returns and capital growth

NSE and BSE are India’s two main stock exchanges where most stock trading takes place

Bullish markets usually show rising prices and optimism, while bearish markets tend to reflect falling prices and cautious investing

SEBI is India’s market regulator, ensuring transparency and fair practices in the financial markets

A demat account stores your shares digitally, while a trading account enables you to buy and sell them

Market orders execute trades instantly at current prices, while limit orders let you set your preferred price

Terms like market cap, P/E ratio, and dividends help investors could help analyse a company’s size, value, and profitability

Frequently Asked Questions
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A bull market is when stock prices rise steadily, showing investor confidence and optimism. A bear market is the opposite. It’s when prices fall over time, often due to economic pessimism or weak market sentiment. These terms reflect how the market behaves overall. Be aware of such market trends as they could impact your investing decisions and strategies depending on the phase.
Yes, both are needed. A demat account stores your shares digitally, just like a bank holds your money. A trading account lets you buy or sell those shares in the market. When you place a trade, it goes through the trading account and the shares are held in your demat account. Both accounts work together for smooth investing.
A market order buys or sells a stock immediately at the best available price, ensuring quick execution. A limit order lets you set a specific price at which you want to buy or sell. The trade will only go through if the market reaches your set price. So, you could say that market orders are faster, but limit orders offer more control over price.
Liquidity shows how easily a stock can be converted into cash without affecting its price. Higher liquidity could refer to easier buying or selling. Volume indicates how actively a stock is being traded. High volume usually means more interest and smoother trades. Both are important to know if you want to avoid delays or major price changes during market transactions.
The Price-to-Earnings (P/E) ratio compares a company’s current share price to its earnings per share. It helps you understand if a stock is overvalued or undervalued. A high P/E might mean the stock is expensive or has strong growth potential, while a low P/E could indicate value or slower growth. It’s useful for comparing companies within the same sector.
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