It is the price of a stock at the closing bell. Trading is not allowed after the close.
For example, the closing price of TCS on 24th April was ₹1,821.00
Tag: stock dictionary
Bid
It is the maximum price that a buyer is willing to pay. A seller will not accept the bid price if it is lower than his offer price.
For example, a seller may quote the offer price as ₹100. This means that the buyer has to quote a bid price greater than ₹100 or the seller will not be interested in selling.
Broker
A broker is an intermediary between an individual and the stock market. It can be an individual or a firm. Brokers charge a commission for their services and can also recommend stocks to their customers.
ICICI Securities, Motilal Oswal, Kotak Securities, etc. are some of the prominent brokers in India.
Bull Market
A bull market is the one in which prices are steadily rising and there is optimism. It is named so, as the market participants are very aggressive in this phase.
For example, Indian stock markets have enjoyed a bull phase between 2003 and 2008 which ended due to the Subprime Crisis.
Bourse
Bourse is another name for an exchange where securities and other assets are bought and sold.
For example, NSE and BSE are two of the biggest bourses in India.
Blue Chip Stocks
These are the stocks of well-established companies which enjoy a competitive advantage and are profitable in the long run.
For example, when it comes to the Indian Stock Market, ONGC, ITC and Asian Paints are a few examples of Blue Chip stocks.
Beta
It is the measure of the change of the price of a stock with respect to the change in the market. Beta helps to know how volatile a stock is.
A beta of more than 1 means that the stock is volatile.
For example, a stock with a beta of 2 would fall twice as much as the fall in the market.
Averaging down
It is the practice of bringing down the purchase price of a stock by buying more unit at a lower price. Traders do this when the price of a stock has fallen considerably.
Let’s say – an investor buys 100 shares of a company at ₹10 / share. Now if the price falls to ₹ 5/ share, he can buy 100 more shares and bring down the cost per share to ₹ 7.50
Assets
In accounting terms, an asset is a tangible or intangible resource that a company can use to produce value.
For example, Plant and Machinery are classified as tangible assets while Goodwill is an intangible asset for companies.