Clear, simple definitions of common financial terms used in stock markets.
The lowest price a seller is willing to accept for a security. Also known as the "offer price."
A market condition where prices are falling or expected to fall, typically defined as a 20% or greater decline from recent highs.
The highest price a buyer is willing to pay for a security at a given time.
Stocks of large, well-established, financially sound companies with a history of reliable performance.
A market condition where prices are rising or expected to rise, characterized by optimism and investor confidence.
The profit earned when a security is sold for more than its purchase price.
A portion of a company's earnings distributed to shareholders, typically on a regular basis.
Spreading investments across various assets to reduce overall portfolio risk.
A marketplace where securities are bought and sold, such as NYSE, NASDAQ, or Bursa Malaysia.
The total value of a company's outstanding shares, calculated by multiplying share price by total shares outstanding.
Price-to-Earnings ratio. A valuation metric comparing a company's stock price to its earnings per share.
A collection of investments held by an individual or institution, including stocks, bonds, and other assets.
A group of companies in the same industry or business area, such as technology, healthcare, or finance.
When a company divides its existing shares into multiple shares, reducing the price per share while maintaining the same total value.
A measure of how much a security's price fluctuates over time. Higher volatility means greater price swings.
The number of shares traded during a specific period, indicating market activity and liquidity.
This glossary is for educational purposes only. These terms are defined in general terms for learning purposes. For detailed financial decisions, please consult qualified professionals.