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Investing in the stock market can be a hectic task for beginners, especially beignets, without knowing the terminologies involved.

Acknowledging key terms is very important for making investment decisions and navigating yourself through the dynamic trades of stocks.

In this post, we will acknowledge the fundamental stock market technologies that the share market institute in Kolkata emphasizes for beginners.

Stock

A stock is an individual’s share of a corporation. By purchasing a stock, an individual acquires a limited share of the corporation. Additionally, stocks are also referred to as shares or equity. Investors buy stocks with the potential expectation that the company’s values will increase over time.

Bull Market & Bear Market

Bull Market: Bull Market is a period of rising stock prices typically followed by investor confidence and optimism in the country’s economy.

Investors are more likely to buy in a bull market, expecting further price gains.

Bear Market: A bear market is characterized by a sustained period of declining stock prices.

It often reflects pessimism about the market and the economy. This bear market leads to decreased investor confidence and increased selling.

Acknowledging the difference between a bull and a bear market is important for beginner investors to shape their investment strategies.

Long and Sort Position

Long selling: The phrase “long position” refers to what an investor has bought when they purchase a securities or derivative in the hope that its value will increase.

Sort selling: Traders create a short position when they sell a security first, with the intent of buying it back or selling it at a lower price in the future. A trader may choose to short a security if they believe that the price of the security is likely to decline in the short term.

Dividends

Dependents are the potential distribution of a company’s profile towards shareholders. Dividends are distributed on a quarterly basis and may be cash or share options..

Companies that offer dividends are considered stable and established in their respective industry sector.

Market Capitalization

Market cap is the sum of a company’s shares outstanding. The stock price is determined by dividing the current share price by the number of outstanding shares.

Market cap classifies companies into large-cap, midcap, and small-cap, all based on size and value.

Conclusion

Making money in the stock market can be overwhelming, but gaining familiarity with these fundamental terms is an important step in becoming a good investor.

Aspiring investors in Kolkata can benefit from enrolling in a reputable share market course in India. This share market course can provide in-depth insights into these and other crucial stock market concepts.