Get to know the A-Z of stock markets under 5 mins!

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Get to know the A-Z of stock markets under 5 mins!

Stock market gyaan on the internet, can seem outrageously boring, cringe-worthy, and even scary. That’s why we broke all the #stockskagyaan into bite-size tidbits.

#SachhiBaat Disclaimer: What you read ahead may not be as entertaining as A for Apple, B for Bada Apple, and C for Chhota Apple. But by the end of it, you will get a panoramic view of stock markets. Bole toh, A for Assets, B for Bulls, and C for Capital.

So, without much ado. Let’s get into the A-Z.

A for Annual Report: You may think of annual reports as an Insta story - all the good stuff, none of the bad ones (except maybe for some footnotes in the teeny weeny font). These TLDRs provide information about a company's financial performance, initiatives, and vision. Want to know whether to invest in a stock and how much to? Check out the annual report of a company.

B is for Bull, Bear, and even Broker: Bulls are like your hyped friend, everything's going up! Bears, on the contrary cause downward spirals. Your Broker is your financial gym buddy - helps you navigate the market.

C stands for Capital & Candlestick: Capital is your moolah, the cash you bring to the stock party. Those fancy charts that look like forgotten birthday candles on a chart are Candlesticks! They tell the story of a stock's price movement. Kinda like emojis for finance peeps.

D is for Dividend: Once you invest in a few shares, dividend is basically like a "thank you" gift from the company. They share some of their profits with you, the awesome investor!

E is for Earnings: How much moolah the company is actually making. Think of it like your report card - good grades (high earnings) mean the stock price might go up!

F is for Fundamental Analysis & Fiscal Policy: Analysing a company's financial health is like stalking their social media - gotta see if they're the real deal, ahem! Fiscal policy is like the government's financial report card - it can affect the whole market. So good investors keep an eye out on that one too!

G for GDP: Basically the country's economic report card. You may hear GDP often these days. It is short for Gross Domestic Product (GDP) which measures the total value of goods and services produced within a country's borders over a specific period.

H is for Holding period: Basically, holding period refers to the duration that somebody can hold before selling a share unit. It seems simple but it does affect your tax, profits and risk management strategies. If you are a cricket follower, it’s like playing a test match.

I stands for IPO: A company's grand debut in the stock market, like your fave band's first concert! IPO is like the first time a private company goes public - similar to somebody putting that cute-couple status.

J is for Junk Bond: Basically, a risky loan to a company that might be a little "shady". Invest in these only if you're feeling adventurous, like trying that funky fusion food that everyone's talking about. FYI, junk bonds may seem lucrative because these are issued by companies with lower credit ratings. So, beware, there's a higher risk of default here.

K is for KYC: Your "Know Your Customer" badge. Gotta show the authorities you're not some shady character before you start investing. KYC is a mandatory rule and everyone must adhere to it.

L is for Leverage: Borrowing money to invest more (high risk, high reward…or high loss!). Psst! L also stands for Liquidity which means how easy it is to buy or sell a stock (don’t get stuck holding onto something you can’t get rid of!).

M stands for Margin: Basically, the loan you take from your broker to buy stocks. Margin is what an investor deposits with their broker (trusted friend) to cover a portion of potential loss from trades.

N stands for Net Asset Value (NAV): It is the per-share value of a mutual fund or exchange-traded fund (ETF) calculated by subtracting liabilities from assets and dividing by the total number of shares outstanding.

O stands for Options: Fancy investment contracts that can be a bit complex. But hey, who doesn't love options in life, right? But more complex can also mean more profits, that’s why there’s a beeline of investors here.

P is for Portfolio/Penny Stock/PE Ratio: Your Portfolio is your investment basket - gotta have a good mix to balance things out. Penny Stocks are super cheap stocks, like that last slice of pizza you debate over. PE Ratio = A fancy way to value a company's stock (like a price tag, but with math involved).

Q stands for Quick ratio: Basically, how easily a company can pay off its short-term debts (think of it like having enough cash for that weekend trip). Risk = Duh! Every investment has some risk, so be smart and don't gamble your rent money.

R is for Risk: Remember Risk hai to Ishq hai? Risk is the uncertainty or potential for loss in stock markets.

S is for Stock Split & Stop Loss: Stock Split is a company dividing its shares to make them more affordable (like getting extra fries because the regular portion is just too small). Stop Loss is an order to automatically sell your stock if the price falls below a certain point (like having a fire extinguisher handy, just in case).

T is for Target Price & Technical Analysis: Target Price is the price you HOPE a stock will reach (think of it like your dream vacation budget). Technical Analysis = Studying charts and patterns to predict stock movements (like reading palms, but with squiggly lines).

Now that you’ve come so far. Let's wrap the rest in a jiffy.

U stands for Upward trend: When the stock price is going up, up, and away!

V stands for Volatility: How much the stock price fluctuates (don't get seasick on this roller coaster!)

W refers to Withdrawal plan: How you'll access your moolah when you need it (retirement goals, anyone?).

X stands for XIRR: Got irregular cash flows? This financial metric will be used to calculate the annual rate of return.

Y is for Yield: The return you get on your investment (like interest).

And finally, Z stands for Zero risk investment: Of course, this is also the biggest hoax in the stockverse. Zero risk means that there is no risk of loss. But it is is virtually impossible and as misleading as someone showcasing Photoshopped images on their Instagram.

Now that you've read the A-Z of stock markets, go ahead, with the right research, advice, and patience you too can build a good future for yourself.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.

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