Stock Exchange Terms and Functions

by ICFM India Stock Market Training Institute

Financial market is the most promising sector that has influence on the economy of a country as well. There are many traders and investors that are part of the market in some or the other way. Although it is a lucrative business but also involves high risk. To combat the effect, it is important to understand the concepts from the core.

ICFM or Institute of Career in financial market is a pioneer academy that focus on practical training rather than a theoretical studies. All concepts are taught on practical trading platforms. The best part, irrespective of academic background, one can enrol for the variety of courses at the academy.

Terms of stock market

Before starting the trading journey, one must be familiar with some of the widely used terminologies. These are part of most of the financial market courses in India:

· Buy and Sell – Buying of shares to be traded or invested in called buy and when the goal is achieved, it is exchanged or sold, which is the process of sell

· Bid and Ask price – Bid is the cost which a buyer is willing to pay for the stock and on a contrary ask price is the price for which a seller is willing to sell

· Exchange – It is the place where the stocks are traded or invested

· Broker – A broker is a registered entity who trades assets on your behalf

· Bull and Bear – A bull is a condition when the investors expect that prices will be increasing while a fall is expected in the bear market situation

· Volatility – it is the rate of the movement of a market

· Dividend – It is the profit share of the company received by a shareholder

· Float – is the number of shares that can be actually traded after all deductions by the insiders

· IPO – It is the short form for initial public offering that is provided when a private company becomes a public trading one

Stock Exchange functionality

Equities or securities are collective term used for stocks and shares, and a platform that allows exchange between them is known as stock exchange. ICFM is one of the best institute to learn stock market and its functionalities.

A stock exchange offers volatility and liquidity for the assets or securities art from being a trading platform. All the participants as well as the transactions are well regulated that ensures security.

A stock exchange is a building or an entity that can be completely online or with a physical presence, in either case it holds shares and stocks of multiple companies under one roof. The public is provided with all details of the shares of the companies at the exchange which will help in making buying or selling decisions.

This also ensures that the general public are made aware of the current pricing and scope of the companies share or stocks that will provide an insight to the growth of the same. All these factors do considerably influence the economy of a country. Since every country has at least one stock exchange, they are determinants of economy growth and influence.