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Stock Market
See AlsoHow do Sleeper Berth Splits Work?Understanding StocksHow Does the Split Sleeper Berth Rule Work?Amazon Stock Split: Why It Matters | The Motley FoolIt is a place where shares of pubic listed companies are traded.
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Stocks
A stock is a general term used to describe the ownership certificates of any company.
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Definition: When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, price per share goes down.
Description: Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.
People often confuse bonus shares with stock split. Distribution of bonus shares only changes its issued share capital whereas stock split splits the company's authorized share capital.
Also see: Bonus Shares, Stock, Equity, Liquidity
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Stock Market
It is a place where shares of pubic listed companies are traded.
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Stocks
A stock is a general term used to describe the ownership certificates of any company.
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Related Definitions
- 52 Week High Low: Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.Description: It is an important parameter for investors (as they compare the current trAlgorithmt is Algorithm?The term "algorithm" refers to a collection of guidelines to be followed in computations or other problem-solving procedures. This sums up the algorithm definition. It is also a process for handling a mathematical equation in several iterations, sometimes using recursive operations. It is often easy or complex, depending upon the nature of the problem. What are the characteristics oAlgorithm Trading: Algorithm trading is a system of trading which facilitates transaction decision making in the financial markets using advanced mathematical tools.Description: In this type of a system, the need for a human trader's intervention is minimized and thus the decision making is very quick. This enables the system to take advantage of any profit making opportunities arising in the market much beforAlpha: Alpha is an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security.Description: In other words, it is the difference between the investment return and the bench mark return (for e.g. NSE Nifty). It is one out of the five technical risk ratios which help the investor to determine the risk reward p
- American Option: American options are derivatives contract with the option of redeeming the contract during the life of the option.Description: The unique feature of redeeming the contract before maturity or on the date of maturity gives it an added advantage of tradability. Due to this particular feature, it is the most widely traded option on trade exchanges. It is highly liquid in nature.It is to be nArbitrageArbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade. The pay-off should be Assetare things you own that you can sell for money. In accounting, an asset is any resource that a business owns or controls. It's anything that could be sold for money. The study of a balance sheet and assets and liabilities helps us to ascertain the equity value. This value can be used to value a company and understand if a company is overvalued or undervalued in the market. What is an asset?An asseAsset AllocationAsset allocation is an investment strategy by which an investor or a portfolio manager attempts to balance risk versus reward by adjusting the percentage of amount invested in an asset of a portfolio according to the risk tolerance of the investor, his/her goals and the investment time frame.Description: Financial assets vary in returns from each other depending on market conditions and user r
- Auction MarketAn auction market is the market where interested buyers and sellers enter ambitious bids and offers, respectively, at the same time. The price at which the security trade reflects the highest price the buyer is interested to pay and the lowest price at which the seller is interested to sell.The trade is executed at the price where the bid and the offer price match. It is different from an overBasis RiskBasis Risk is a type of systematic risk that arises where perfect hedging is not possible. When there is a variation between hedge/futures/relative price and cash/spot price of the hedged underlying at any given point of time, that variation is called ‘Basis’ and risk associated with it is called Basis Risk.Basis is simply the relationship between the cash price and future price of an underlyi
Related News
How stock splits affect price weighted and market-cap weighted indices?Walmart implemented a three-for-one stock split last Friday meaning the investors would now hold three shares of the US retail giant instead of one.- Amazon to be added to the Dow Jones Industrial Average, replacing Walgreens Boots AllianceThe shift was prompted by Walmart's decision to do a 3-to-1 stock split, which will reduce its stock's weighting in the index. The Dow is a price-weighted index, so stocks that fetch higher prices are given more weight.
- Walmart announces 3-for-1 stock splitWalmart said on Tuesday it will carry out a stock split of its outstanding shares at a ratio of 3:1, as part of its ongoing review of optimal trading and spread levels.
- Nestle stock split to make India's 6th highest priced stock affordableNestle said the split is being done to enhance the liquidity of the company's equity shares and to encourage participation of retail investors by making equity shares of the company more affordable. Following the split, share prices would be reduced to 1/10th of the current price.
- Nestle shares jump 5% on announcement of stock splitThe board of directors of Nestle India will consider the proposal of sub-division of shares of the company of face value Rs 10 each on October 19. This proposal will be considered along with the earnings for the September quarter.
- Smallcap multibagger stock, with over 380% returns in 3 years, announces record date for stock splitAs per Trendlyne data, the average target price of the stock is Rs 1,055, which shows an upside potential of 8% from the current market prices. The consensus recommendation from 3 analysts for the stock is a 'Strong Buy'.
- Shaily Engineering board approves 1:5 stock split. check detailsThe company further said the rationale of the split is to increase the floating number of shares in the hands of public shareholders, increase the liquidity of shares, and encourage the participation of small investors by making the price more affordable.
- Japan's Nikkei rises for third session as tech shares gainThe benchmark U.S. 10-year yield scaled a 16-year high this week, as a run of strong U.S. economic data raised concerns that the U.S. Federal Reserve could lay the foundations for higher-for-longer rates at the Jackson Hole summit this week.
- From prized startup to possible bankruptcy: WeWork's tumultuous pathFounded by Adam Neumann and Miguel McKelvey in 2010, WeWork had a tumultuous path to become a publicly-listed company. Below is a timeline of notable WeWork developments since mid-2019.
- WeWork to proceed with 1-for-40 reverse stock splitWeWork shares had lost almost 98% of its value this year, approaching near-zero earlier in the month, after the company warned it could go bankrupt.
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