Basic share Market terminologies
Initial Public offering (IPO) : Initial Public offering is the process by which company can go public by sale of its stock to general public. selling of securities in the primary market.
FPO : Follow on Public offer The process of FPO starts after an IPO. FPO is issue a public issue shares to investors at a large by a public listed company.
Mutual fund : A mutual fund is a professionally managed investors scheme ,usually run by an assets managed company that brings together a group of people and invest their money in stocks ,bonds and shares.
Debenture : Debentures are a debt instrument used by companies and government to issue the loan. Coupons or Interest rates are offered as compensation to the lender.
Right Share : Right shares are those shares which are issued to existing shareholders. Existing shareholders can either accept or reject this offer.
Bonus share : Bonus shares are additional shares that a company gives to its existing shareholders on the basis of shares owned by them.
Bull Market : when stock prices in a market are generally rising. it is called a bull market.
Bear Market : when stock prices in a market are generally falling. it is a called a bear Market.
Bid : your bid is the amount that you are willing to pay for a share.
Ask : Ask is the price at which you are willing to sell a share
Market capitalization : Market capitalization is simply the value of the company as per stock market. That is the current value of all its share put together.
Portfolio : Portfolio is simply the collection of all investment an investor has made .
