Stock Market: Essential Terms Every Beginner Should Know


A share of ownership in a company

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Index: A group of stocks used to track the performance of a market or sector

Broker: A person or firm that buys and sells stocks on behalf of clients

Bull market: A period of rising stock prices

Bear market: A period of falling stock prices

Dividend: A portion of a company's earnings paid out to shareholders

Market capitalization: The total value of a company's outstanding shares

Initial Public Offering (IPO): The first time a company's stock is sold to the public

Volatility: The degree of price fluctuation in a stock or market

P/E ratio: The price-to-earnings ratio, a measure of a company's stock price compared to its earnings per share.

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