Market Value

Market value of a market stock is the price at which it is currently traded in the market. If Bharti Airtel trades at say, Rs. 800/-, its market value is said to be Rs. 800/-.

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Market Order

A trading order which is to be sold at the bestt possible price when it is executed at the exchange.

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Liquidity

The type of assets that can be converted into cash in case of need quickly without much loss of value.

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Limit Order/Price

A trading order of stocks and securities which specify that the trade be executed only at a pre-determined price or higer.

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Stock Index

A collection of securites which is used to determine the stock market trends. Example is Sensex and Nifty, which tracks price of 30 large company stocks and 50 stocks in BSE and NSE respectively.

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Growth Fund

Mutual fund that invests in stocks showing potential for capital appreciation.

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Equity Investing

Becoming an owner or part owner of a company or a piece of property through investments such as stock, growth mutual funds, or real estate.

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Dividend Reinvestment Plans (DRIPs)

This option lets investors reinvest what they get in the form of dividends back into the share market.

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Dividends

Companies pay shareholders a part of the profit from investments as a gesture of supporting the company called dividends.

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Direct Purchase Plans (DPPs)

The stocks of a company from the first share which can be bought directly from the company, instead of buying through a broker.

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