Stock Market Terminology Every Trader Must Know- By Rayner Teo

Stock Market Terminology Every Trader Must Know- By Rayner Teo

Understanding key stock market terms is essential for informed trading and decision-making. Equity represents ownership in a company, while bull and bear markets indicate rising and falling trends, respectively. An IPO (Initial Public Offering) refers to a company’s first public stock offering, and dividends are profits distributed to shareholders. A portfolio is a collection of investments, and volatility measures price fluctuations in the market. Market capitalization indicates the size of a company based on its stock value, while a stop loss helps limit potential losses by pre-setting an exit point. The P/E (Price-to-Earnings) Ratio compares a stock’s price to its earnings, and liquidity refers to how easily an asset can be bought or sold. Knowing these terms empowers traders to analyse markets effectively and execute trades with confidence.