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Glossary of Stock Market Terms

Equity

In the stock market, Equity refers to the ownership interest represented by ordinary shares in a company. This concept is fundamental to understanding how companies raise capital and how investors can participate in a company’s growth and profitability. Key Aspects… Weiterlesen »Equity

nterpretation: A higher dividend yield indicates that a company pays a substantial dividend compared to its stock price, offering more income for the investment made.

Dividend Yield

In the stock market, the term „Dividend Yield“ is a key financial metric used by investors to evaluate the attractiveness of a stock as an income-generating investment. It represents the amount of a company’s annual dividend relative to its current… Weiterlesen »Dividend Yield

Understanding Dividend Cover Definition: Dividend Cover is calculated by dividing a company’s net income by the total dividends paid to shareholders. The formula is:

Dividend Cover

Dividend Cover is a vital financial metric used in stock market analysis to gauge a company’s ability to pay dividends out of its current earnings. It is an essential indicator for both investors and analysts, as it not only reflects… Weiterlesen »Dividend Cover

Discount

In the stock market or stock exchange, the term discount refers to a situation where a stock is trading below its nominal or face value, which is known as its „paid-up value.“ Understanding this concept is crucial for investors and… Weiterlesen »Discount

Cum

In the stock market, the term Cum is a prefix used to describe certain entitlements that come with a share at the time of its purchase. It’s a Latin term meaning „with“ and is commonly used in the context of… Weiterlesen »Cum

Contract Note

In the stock market, a „Contract Note“ is an essential document issued by a broker to their client, confirming the execution of a trade, whether it’s the purchase or sale of shares. It serves as a formal record of the… Weiterlesen »Contract Note

Company

In the stock market, a Company refers to a separate legal entity that is incorporated and conducts business or trade. The nature and structure of a company are governed by specific legislation, such as the Companies Act 1965 in some… Weiterlesen »Company

Companies Act 1965

The Companies Act 1965 refers to a significant piece of legislation that was enacted to govern and regulate the formation, operation, and management of companies. Although the specifics of the Act can vary from country to country, as different nations… Weiterlesen »Companies Act 1965

Closing Session

In the stock market, the Closing Session is a specific part of the trading day designated for determining the closing price of stocks. This session plays a crucial role in the stock market as it establishes the final trading prices… Weiterlesen »Closing Session