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| Major trend |
Also known as a primary trend. It
usually lasts longer than one year.
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Market capitalization |
It is the total value of a companys outstanding equity shares as per its
market price. It is being computed by multiplying the total number of a
companys shares with its market price. Market capitalization tells about the
size of a company in equity market.
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Market capitalization Weighted Index |
It is a method of Index computation in which a weight is assigned to every
constituent of index according to its market capitalization. Thus a security
having the biggest market capitalization will impact the market most. Market
capitalization Weighted Index method is followed by both of the prime exchanges
of India namely NSE and BSE.
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Market depth |
It implies the depth of the market. A stock is supposed to have a good depth if
a sufficient quantity can be traded with a fraction of a difference in unit. If
one is able to sell or buy the stock with very less jobbing difference then the
stock is suppose to have a good market depth. By market depth we can know the
sentiment of market (interest level of buyers and sellers).
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Minor trend |
The minor, or near-term, trend usually lasts less than three weeks and
represents shorter term fluctuations in the intermediate trend.
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Moving Average |
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An average of a certain body of data. The most common way to calculate the
moving average is to work from the total of last ten days closing prices. Each
day the new close is added in the total and the close 11 days back is
subtracted. The new total is then divided by the number of days (ten). The
moving average is essentially a trend following device. The most commonly
averages are 5, 10, 20 and 40 days or some variation of those numbers (such as
4, 9 and 18).
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Money Market |
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The term money market is used quite often but a lot of
common people confuse it with the entire financial market. It consists of a
wide range of instruments with maturities ranging from one day to a one year,
issued by the government and by banks and corporate of different credit ratings,
and traded between brokers.
Strictly speaking it is one part of the financial markets. Some people
confuse it with bonds, some with fixed income, some with debt. Whereas Money
Markets are referred to the very short term debt securities (by short term we
mean that those securities are very liquid and are of short term nature and can
be en-cashed quickly.) We can even treat money market securities as cash
investments also.
More
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Nifty Index |
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Nifty is a group of top 50 stocks in NSE (National Stock Exchange). The
selection of these stocks is done on the basis of many factors that include
liquidity, quality of company, market capitalization etc. The Index is computed
on the basis of market capitalization weighted Index method. Nifty Future is one
of the most liquid futures in Indian Stock Market. Calls and Puts on Nifty are
European in nature that means they cant be exercised before the expiry date.
On the other hand Calls and Puts on stocks are American in nature, which means
that they can be exercised at any time after the execution of contract.
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Neckline |
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A line with a slight upward slope at the top
often used in head and shoulders patterns. It helps to determine
the completion of a pattern. When the trends trend line breaks the
neckline a downward trend in the market could be developing.
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