Stock Words

Know some stock words in use:

• Demat account - Dematerialisation of the account. Maintaining all shares in computerised form instead in the form of paper


• PAN - PAN stands for Permanent Account Number (PAN) which is a 10 digit alphanumeric number issued by the Income Tax Authority of India in the form of a laminated card. It serves as an Indian ID proof & needed to: stock investment, Demat account opening, buying real estate, opening bank account, get loan, apply visa or passport, rental income, foreign remittance, etc.


• Annual report - submitted by the company to share holders listing the details of company's last year activities


• Day trading - Buying and selling the shares on the same day


• Capital gain - The profit gained from the market


• Dividend - Investing money obtained by releasing its shares in the growth of the industry and dividing the gain obtained from such an invesment among the shareholders is dividend. There is no Tax for money gained from such investments


• E.P.S - Earning Per Share. The earnings obtained from 12 months on a share


• Book value - This value shows the compaanys profit after overcoming its loans. If the value is high then the company is good


• Bonus shares - The free shares given by the company to its shareholders


• Capital market - primary market (first to sell shares IPO) and secondary market(buy and sell the shares) forms the capital market


• Bull market - If the stock market runs profily then it is said to be Bull market


• Bear market - If the stock market goes down by 30% or is in doom for 2-3 months then its said to be bear market