When they first come into the investing world, people spend lots of time searching Google for major share market terms like online share trading app. Certainly, Investopedia becomes their favorite website for learning the meaning of these varying words. Though there are thousands, probably millions of varying terminologies that, stock market traders/investors need to know, nevertheless, there are a couple of them that are utilized repeatedly. The plain domain knowledge of the terms is actually crucial if you desire to enter and be successful in the market. This article offers an elementary guide to help beginners to understand the share market’s main terms.

Share

This is the part ownership of any company and represents the share holder’s claim on the company’s earnings and assets. It goes up and comes down according to several and varying market factors and can be exchanged at stock exchange markets. As you purchase more shares, your individual ownership stake in the firm also becomes greater.

Primary market

Also called the New Issue Market (NIM) sometimes, it’s the marketplace in which new shares are issued and the public buys them directly from the company, normally via an IPO. The company gets the full amount on the sale of such shares.

Volatility

This means the speed at which the price of a stock goes up or comes down. More volatile assets are taken to be riskier than their less volatile counterparts as their price is anticipated to be a lot less predictable and could fluctuate dramatically. This is where an online stock trading app becomes truly valuable. It could help in creating a trend out of an asset’s volatility.

Secondary market

This is the platform on which securities that were formerly used are traded. The secondary market comprises indirect buying and selling of company shares among investors. Brokers are their intermediaries and investors are the ones that get the amount that is fetched by the sale of the shares.

Bull market

This term is used in describing the market scenario. It’s when the prices of shares are increasing and the public happens to be optimistic that such a price will keep rising.

Bear market

This is the opposite of the bull market. It’s when the prices of shares are decreasing and the public is pessimistic concerning the stock market. The public is afraid and feels that the market will keep falling, and so selling rises within the market.

Broker

A stockbroker is an organization/individual that’s a registered member of a stock exchange and is given an operating license to take part in the securities market on behalf of clients. They can buy and sell company stocks directly within the share market on behalf of clients then charge a commission for the service they have rendered.

Day order

This is an order that’s placed when an investor is prepared to buy/sell shares on a specific day and the order is automatically canceled when it’s not fulfilled on a specific day.

There are thousands of other terminologies such as the online share trading app that are involved in trading/investing. Nevertheless, these are the major ones that beginners should know. It’s hoped that the list is helpful.