15 Basic Terms of the Stock Market (Part-3) 

1. Bullish

Refers to general uptrend in a stock or the general market. 

2. Bearish

Refers to the general downtrend in a stock or the general market. 

3.Volume

Number of share transactions done in a timeframe. 

4. Liquidity

High demand and supply readily available for a stock means there is a high liquidity. 

5. Charts

Graphical representation of the price movement of a stock. 

6. Weeks High/Low

The highest price made in the last 52 weeks(1 year) and the lowest price made in the last 52 weeks. 

7. Upper Circuit (UC) 

•An upper level for price movement in a stock to prevent huge movements & manipulation. 

•Upper circuit of F&O stocks is at +10% and it will be opened after a while. Next upper circuit will be +15% , +20% and so on. 

•For non -F&O stocks, upper circuit is fixed at pre-set levels like +5%, +10% and so on. 

8. Lower Circuit (LC) 

• A lower level for price movement in a stock is to prevent huge movements and manipulations just like upper circuit. 

• Lower circuit of F&O stocks is at -10% and it will be opened after a while. Next lower circuit will be at -15% , -20% and so on. 

• For non F&O stocks, lower circuit is fixed at pre-set levels like -5%, -10% and -20%.

9. Gap-up and Gap-down opening

• Between 9:00am -9:08 am, orders are taken by the exchange. 

• Order matching is done based on normal demand and supply and opening price is discovered. 

10. Closing Price

• Closing price of a stock might be different from the last traded price of the day. 

• Closing price of day is average price of last 30mins of trading , with weightage given to the volume. 

11. Record Date

Is the date on which all those who are on record as shareholders of the company get the benefits of corporate actions of that company. 

12. Stock Exchange

• The stock exchange provide a platform for the investors to buy or sell securities from each other. 

• Three national stock exchanges in India are :

1. NSE

2. BSE

3. MSEI

13. Issuers

Are the companies and their entities, that seek admission for their securities to be listed on the stock exchange. 

14. OCDs

• Stands for : Optionally Convertible Debentures

• Allows a bondholder to convert the bonds to equity. 

• This conversion takes place at a predetermined prize. 

• The conversion is optional - the bondholder may choose to hold the bond till maturity. 

15. Nifty 50 and Sensex

•Nifty 50 is a group of 50 largest stocks by the market capitalisation. 

• Sensex is the group of 30 largest stocks.