List of Essential Stock Market Abbreviations and Terms India

*List of Essential Stock Market Abbreviations and Terms*-

 * ADR: American Depository Receipt (shares of a foreign company traded in the US)
 * AMC: Asset Management Company (manages investment funds)
 * AMFI: Association of Mutual Funds in India
 * ATM: At-the-Money (option strike price equals the underlying asset's price)
 * BSE: Bombay Stock Exchange (India's oldest stock exchange)
 * EPS: Earnings Per Share (company's profit divided by outstanding shares)
 * ETF: Exchange-Traded Fund (basket of securities traded like a single stock)
 * F&O: Futures and Options (derivative contracts)
 * IPO: Initial Public Offering (a company's first sale of stock to the public)
 * MF: Mutual Fund (professionally managed investment pool)
 * NAV: Net Asset Value (value of a fund's holdings per share)
 * NSE: National Stock Exchange of India
 * OTM: Out-of-the-Money (option strike price is unfavorable to the current asset price)
 * P/E Ratio: Price-to-Earnings Ratio (stock price divided by earnings per share)
 * RBI: Reserve Bank of India (India's central bank)
 * SEBI: Securities and Exchange Board of India (market regulator)

Important Investing Terms

 * Ask: Lowest price a seller will accept for a security.
 * Bear Market:  Period of declining stock prices.
 * Bid: Highest price a buyer will pay for a security.
 * Blue-Chip Stock: Stock of a large, well-established company with a track record of stability.
 * Broker:  An individual or firm that executes trades on behalf of clients.
 * Bull Market:  Period of rising stock prices.
 * Capital Gain: Profit from selling an asset at a higher price than you bought it.
 * Dividend: Portion of a company's profits distributed to shareholders.
 * Index:  Benchmark that tracks the performance of a group of stocks (e.g., S&P 500)
 * Liquidity: How easily an asset can be bought or sold without affecting its price.
 * Portfolio: A collection of investments held by an individual or institution.
 * Risk Tolerance:  An investor's ability to stomach potential losses.
 * Sector:  A group of companies with similar business activities.
 * Volatility:  Measure of how much an asset's price fluctuates over time.

Additional Helpful Terms
 * Beta:  Measure of a stock's volatility relative to the overall market.
 * Day Trading: Buying and selling securities within the same trading day.
 * Diversification: Spreading investments across different assets to reduce risk.
 * Market Capitalization: Total value of a company's outstanding shares.
 * Order Types:  Instructions on how to buy or sell (market order, limit order, etc.)
 * Short Selling:  Betting on a stock's price to decline.
 * Yield:  Annual return on an investment expressed as a percentage.
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