Some simple stock market terms defined

The stock markets have a language of their own. The terminology used in the stock market could be very challenging and discouraging for a new person. So the first step to do when you intend to invest in the stock market is to begin with familiarizing yourself with the common terms. But be prepared, it is not an easy and single day process. It would take a lot of patience and time on your part. This is due to a wide variety of terms being used. Let us help you get familiar with a few terms.

• SGX NIFTY: SGX NIFTY stands for Singapore Exchange Nifty. Nifty Futures is traded on Singapore Stock Exchange. Nifty and SENSEX are impacted by other indices around the world. More so, India and Singapore being in the same sub-continent have a deeper impact on each other’s stock markets.

• 52 week low and 52 week high: The price of the securities, stocks and commodities are always fluctuating. The lowest value it reaches to in a period of 52 weeks on a rotating basis is called 52 week low. Similarly, the highest value it reaches to in a period of 52 weeks on a rotating basis is called 52 week high. This figure forms an important parameter for an investor as they can compare the current price with the lowest/highest price the stock has reached before deciding to buy or sell it.

• Top gainers and Top losers: As the price of all shares keep fluctuating, the shares that gained the maximum in a day are referred to as Top Gainers. Similarly, the ones that dropped the maximum when compared to their own opening price are referred to as Top Losers.

You could begin with understanding a few terms daily, along with reading business news and news on the stock exchanges. To be a good investor, lot of study of the market scenario, the global economic scenario and knowledge on the news releases for the intended company you decided to invest in is required. Keeping track of happenings is the key to success for profitable investing.