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 :
- Face Value —> It is the nominal value of a stock that the issuer has decided to issue at.
- Book Value —> It is determined by dividing the net worth of the company’s stock by its number of outstanding shares.
- Market Value —> It indicates the last traded price of a stock at a given listed stock exchange on a given day.
- Volume —> Volume of stock is the average of the total traded stocks at the exchange over a period of time.
- 52 weeks HIGH/LOW —>. The lowest and highest point of the price of a stock at the exchange in the immediately preceding 52 weeks.
- 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.
- Price to Earning ratio(P/E) —> It is determined by dividing the closing price of a stock with EPS of the stock.
- 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.
- 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.
- 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