Blog #12 - Basic Terminology Of Share Markets - Part II

 

Blog #12 - Basic Terminology Of Share Markets - Part II

Friends Share Market is one of the best platforms for earnings. Learn and earn.

 

 

 

In Blog #06 we saw some terminologies that frequently used in share market. In this blog we will continue to see some other terminologies that are frequently used. Let’s start.  

 

Share:

A share is a unit used share market, mutual funds, real estate business etc. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. Simply it implies that if someone has a number of shares means he/she is a part of that company. 

 

 

Shareholder:

 

A shareholder (also known as stockholder) is an individual or institution or firm (including a corporation) that legally owns one or more shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation. By law, a person is not a shareholder in a corporation until their name and other details are entered in the corporation's register of shareholders or members.

 

 

Portfolio:

 

The term “portfolio” refers to any combination of financial assets such as stocks, bonds and cash. Portfolios may be held by individual investors or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a portfolio is designed according to the investor's risk tolerance, time frame and investment objectives.

 

 

Primary Market:

 

The primary market is the part of the capital market that deals with the issuance and sale of equity-backed securities to investors directly by the issuer. Investors buy securities that were never traded before. Primary markets create long term instruments through which corporate entities raise funds from the capital market. It is also known as the New Issue Market (NIM). When a private company enters first time in share market then this platform is used.

 

 

IPO:

 

An initial public offering (IPO) or stock market launch is a public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.

 

 

Secondary Market:

 

The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.

 

 

Intraday 

 

Intraday means "within the day." In the financial world, the term is shorthand used to describe securities that trade on the markets during regular business hours. These securities include stocks and exchange-traded funds (ETFs). Intraday also signifies the highs and lows that the asset crossed throughout the day.