BULL, BEAR, IPO, FPO…what do these popular words of the stock market mean?

The discussion of the stock market goes on like this, but the recent decline in the shares of Adani Group has brought it into more discussion. This is such a market about which many times big heroes fail and many times the rank has also been seen to become the king. for this reason share market Also called an uncertain world. In this copy, we will tell you the meaning of some words used in the stock market, which can be of use to you. If you are interested in share market then you should know about these words.

• Initial Public Offer (IPO): Many private companies are active in the country. When these companies are in need of funds, they list themselves in the stock market through SEBI. With this, an investor can buy and sell these shares. IPO usually opens for three days. Those who buy the company’s IPO get a stake in the company and the fund is collected with the company. The company can spend the funds received from the investors for its progress and various other works.
• Follow up on Public Offer (FPO): FPO is also a way of raising funds from the open market like IPO, but it can be brought only by a company which is already listed in the stock market. Under this, the company issues new shares to its existing and new shareholders to raise capital. Recently the FPO of Adani Group came. It was successful in raising 20 thousand crores, but the company canceled it.
• New Fund Offer (NFO): When an investment company launches a new mutual fund scheme with the intention of raising capital from the market, it is called an NFO. The mutual fund company invests the capital raised from NFO in securities like equity, bonds and other assets. It also aims to generate returns for the investor. The process of issuing NFO is handled by the Asset Management Company (AMC).
• Market Crash: This term is used when there is a huge decline in almost all the stocks and indices in the recent few days. These are signs of stock market crash. Almost all the stocks appear with red mark. Investors distance themselves from investing new money in the stock market and the decline accelerates further.
• Share transaction: Whether you buy or sell in the share market, in simple words this is called share transaction. Needless to say that this buying and selling should happen only with the companies listed in NSE, BSE.
• BULL: This is a very popular term in the stock market. It means fast. If the players of this market say Bull Run, then definitely believe that the market is running. Many times the bull is shown as a symbol in the news media.
• BEAR: This word means decline. When the stock market is going through a period of decline, then the word Bear is used. Market players describe the condition of the market with this one word.
• SHORT SELLING: In the share market, this word means that the shares which are not available can also be sold. There should just be money in the account. It is legally valid.
• Demat Account: You can keep shares, mutual funds etc. bought from the market in this account. It also works like a bank account but you cannot keep money in it. All the shares you will keep in this account, of the company you will keep, will be visible to you in a sequential manner. Will buy new shares or sell retained shares, the accounting will be done through this account.
• Dividend: It simply means profit, which companies give to their share holders. While buying shares, you come to know that such and such company will give dividend. This amount is decided on how much the company earned. There is also a provision of dividend in mutual funds.
• Equity: Equity simply means partial participation in a company. When a company brings IPO and you invest in it, it means that you have got as much stake as the share has been bought. Suppose a company has set a target of raising one lakh rupees from the market. If you invest Rs 10,000 in it, it will be called your equity. For trading in equity, investors need to have a demat account and trading account.
• SEBI: Its basic function is to protect the interests of the investors, to operate the stock market under the rules and regulations. The SEBI Board consists of a Chairman, a number of full-time and part-time members. The chairman is nominated by the central government. The Securities and Exchange Board of India (SEBI) was established on April 12, 1992. The objective of SEBI is to ensure that the Indian capital market functions in an orderly manner and to provide a transparent environment to investors or traders for their investments.
• Sensex: This is the benchmark index of the Bombay Stock Exchange ie BSE. It is also called BSE Sensex. The word Sensex is made up of sensitive and index. In Hindi it is called sensory index. It shows the ups and downs in the shares of 30 companies of different sectors i.e. index. In this way, BSE keeps an eye on the fluctuations in the shares of top 30 companies, in the same way, National Stock Exchange i.e. NSE shows the index keeping the account of top 50 companies. It is also called Nifty 50. It is a leading market indicator. The word Nifty is made up of National and Fifty. As per the name, this index includes 50 Indian companies from 14 sectors.