Technical Analysis Course Hyderabad: About Stock Market Terminology
Stock Market : NCFM Training in Hyderabad
Awareness about the Stock Market Terminology provided by AS Chakravarthy NCFM Academy Hyderabad, Ameerpet is the leading institute training for Stock Market Courses NISM, NCFM, Fundamental and Technical Analysis courses in Hyderabad.
- COMPANY: Company is an artificial person created by Law and having separated legal entity with a perpetual succession, common seal and liability is limited.
- EQUITY SHARE: The part of something in a company is called Equity, professionals called as Share; it is having the right to receive and sharing the company’s profits in the form of Dividend.
- SHARE CAPITAL-Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. Share capital (is also called as shareholder’s capital, equity capital, contributed capital or paid-in capital) is the amount invested by a company’s shareholders for use in the business (In other words, share capital is equal to Face value of the share multiplied by the total no. of outstanding equity share o the company). A company that wishes to raise more equity can obtain authorization to issue and sell additional shares, thereby increasing its share capital.
- FACE VALUE OF SHARE – Face value is the nominal value (par value) of a Share stated by the issuer. For stocks, it is the original cost of the stock shown in the certificate.
- MARKET CAPITALISATION– It is calculated by multiplying the Market price of the company’s shares by the total no. of outstanding shares of the company.
- Initial Public Offer (IPO) is a source of collecting money from the public for the first time in the market to fund for its projects. In return, the company gives the share to the investors in the company.
- FPO– A follow-on public offer is an issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.
For example, Google’s initial public offering (IPO) included both a primary offering (issuance of Google stock by Google) and a secondary offering (sale of Google stock held by shareholders, including the founders).
- PRIMARY MARKET– Primary market provides the opportunity to the issuers of securities, both Govt. and corporations, to raise resources to meet their requirements of investments. Securities in the form of equity or debt. can be issued in domestic/international markets at the face value, discounts or premium. The primary market issuance is done either through public issues or private placement.
- SECONDARY MARKET– Secondary market refers to a market where securities are traded after being offered to the public in the primary market or listed on the stock exchange. Secondary market comprises of equity, derivative and the debt markets. The secondary market is operated through 2 mediums, namely over the counter(OTC) market and the exchange traded market.
- BROKER (TRADING MEMBER)- A member in recognized Stock Exchange is called Broker. The main activity of the Broker is providing service to Buy & Sell the shares of the investors through Stock exchanges. Taking broking card on behalf of individual name, firm name and company name is possible.
- STOCK EXCHANGE (NSE & BSE). It’s a recognized trading platform to Buy and Sell the Shares through Brokers/Sub-Brokers.
- QIP PLACEMENTS– It’s a capital-raising tool, primarily used in India and other parts of southern Asia, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified. The Securities and Exchange Board of India (SEBI) introduced the QIP process through a circular issued on May 8, 2006, to prevent listed companies in India from developing an excessive dependence on foreign capital.
- FDI– Foreign direct investment or FDI is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. In simple terms, when any organization in one nation makes an investment in any organization in abroad, it is mostly called as foreign direct investment or FDI.
- FII– A foreign institutional investor or FII is an investor or investment fund registered in a country outside of the one in which it is investing. Institutional investors most notably include hedge funds, insurance companies, pension funds and mutual funds. Foreign Institutional Investors or FII refers to investors that are from other countries and that are investing in the Indian financial market. When any organization in abroad make investment in the market related to stock of a nation then this investor is called foreign institutional investor or FII.
- DII– Domestic Institutional Investors or DII refers to the Indian institutional investors who are investing in the financial markets of India (For example Stock Market).
- HNI– High net worth individual (HNI) is a classification used by the financial services industry to denote an individual or family with high net worth.