Vital terms in the share market language

The stock market is of interest to millions of people out there who are willing to make money. However, the business is not simple. You have to learn a lot of things related to the market to become successful in it. You could start with knowing some of the vital terms used in the market.

Margin trading or leverage – If you are buying stocks that cost more than you could afford, the transaction is known as margin trading. In this process, the extra amount will be given by the brokerage firm. You would have to repay this amount once you are done with your trading session.

Rights issue – If there is a sudden need for capital for a publicly listed company, they could ask help from their existing shareholders. Instead of issuing a new set of shares in the market, they will allocate these shares only to the existing shareholders and ask them to buy them. It is known as a 供股, and the shares will be available at a discounted price than the current value. However, you could not buy these shares if you do not own the shares of that company.

Stock Quote – It will be a decimal number that will provide you the current value of the stock in the market along with some other information. The additional info will be the last day’s closing price, the current day’s open price, the difference between the past day’s and current price, and much more. You could also get to know the day’s maximum and minimum value of the stock. You can see this stock quote either on Google or on some applications dedicated to providing stock quotes. It is easy to handle, and you could get a lot of other information in astock app. If you are serious about investing, you must keep track of this information.

Moving Average – If the stock deviates to a maximum of 50 points in a period, the moving average of the company’s shares would be fifty. This number could be anything depending on the changes in the stock’s value with time.

Odd lot – The bunch of shares one person buys in the stock market is known as a lot. In the case of an IPO, people could buy stocks of the company only in lots. If they want more than the number of shares in the lot, they have to buy another lot and not one or two shares extra. However, if this lot contains fewer than 100 shares or shares in multiples of 100, it is known as an odd lot. If the investor is qualified and has the knowledge, he will go only for a trade of lots containing around a value of multiple of 100. However, it is just a theory. The same goes for a trade where the person sells his shares also.

Round lot – On the contrary to odd lots, round lots are the trades that contain shares in the multiples of 100.