STOCK MARKET BASIC PARAMETERS

STOCK MARKET AND ITS PARAMETERS

  • The stock market, share market or equity market is a loose network of economic transactions. It is the aggregation of the stocks of buyers and sellers, also called shares.
  • Shares represent the ownership claims on business.
  • Stock exchanges lists shares of both other security types as well as shares of common equity.
  • Corporate bonds and convertible bonds.

Stock Exchange :-

  • It is a platform, an organisation through which, or a place where individuals and organisations can trade stocks.
  • Furthermore, many large companies have their stock listed on a stock exchange for the purpose of trading.

Stock Market Parameters :-

  • Stock Parameter is the factor or the determinant that eventually controls or determines the stock price at a stock exchange.
  • Knowing and learning about these parameters will help you to trade in stocks more easily.
  • Below are now some of the definitions of some of the most important parameters in a stock exchange :

 

  1. Face Value —> It is the nominal value of a stock that the issuer has decided to issue at.
  2. Book Value —> It is determined by dividing the net worth of the company’s stock by its number of outstanding shares.
  3. Market Value —> It indicates the last traded price of a stock at a given listed stock exchange on a given day.
  4. Volume —> Volume of stock is the average of the total traded stocks at the exchange over a period of time.
  5. 52 weeks HIGH/LOW —>. The lowest and highest point of the price of a stock at the exchange in the immediately preceding 52 weeks.
  6. Earning per share —> EPS of a company is determined by dividing the aggregate net profit of the last four quarters by fully diluted equity capital.
  7. Price to Earning ratio(P/E) —> It is determined by dividing the closing price of a stock with EPS of the stock.
  8. BETA —> It displays the sensitivity of the stock to the market. Furthermore, it indicates how much the price moves at a unit change in the market.
  9. Market Capitalisation —>. It is determined by multiplying the market price of the stock with the total number of outstanding as well as issued stock inn the market.
  10. Price to 52 Week HIGH/LOWS —> It is determined by dividing the current market price of the stock by 52 Week HIGH/LOW.

    Content credits : Pravsaran Singh Arora 

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