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Sri Lanka Equity Forum » Stock Market & Forum Help » Stock Market words - For the New Investors (Beginners)

Stock Market words - For the New Investors (Beginners)

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swan03


Vice President - Equity Analytics
Vice President - Equity Analytics
Hi guys,

I have seen so many questions in this forum regarding Stock Market Words. I guess this will help beginners to understand the meaning of some common words.

There are currently two indices in the CSE
1. ASPI- The All Share Price Index
2. MPI - The Milanka Price Index

What are the type of shares?

1.Ordinary Shares (N) - A right to vote at the company General meeting.
2.Non-voting ordinary shares (X) - These shares have the characteristics of ordinary shares except the right to vote at the company General meeting.
3. Preference Shares (P) - Most preference shares have a pre-determined dividend rate which you are entitled to receive.
4. Warrants (W) - This is certificate giving you the right to buy shares at a stipulated price at a future date.

Stock Market words

1. Allotment letter - A document showing that you have been allotted a certain number of newly issued shares.
2. Annual general meeting (AGM) - Every company must have an AGM each year, to allow shareholders to vote on the accounts, directors and dividends and question the board on the company's affairs.
3. Annual Report - The yearly independently audited report to shareholders which must be produced by all publicly quoted companies.
4. Bargain - The term for any deal on the stock exchange, purchase or sale.
5. Bear Market - Someone who thinks that the price of a share or stock market prices in general are about to fall.
6. Bid price - The price you sell your stocks or shares.
7. Blue chip - The shares of large well established companies.
8. Bull Market - Someone who thinks that the price of a share or the market in general is about to rise.
9. Dividend - The part of a company's profits distributed to shareholders, usually on a regular basis. An interim dividend is paid at the half-year stage and a final dividend at the end of the full year.
10. Earnings Per Share (EPS) - A company's profits (after payment of interest and preference share dividends) dividend by the number of shares issued.
11. Liquid Stock - is a stock with a lot of volume that is easy to buy and sell.
12. Price-earnings ratio (P/E) - This is calculated by taking the current earnings (profits after certain deductions) of the company and dividing them by the number of shares issued. This gives the earnings by share figure. It is then divided into the current share price which gives the P/E ratio. See also Earnings per share.
13. Prospectus - An independently audited document detailing a company's financial history and current situation and published ahead of a new share issue.

StocksWatch

avatar
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Great work...keep up the good work.

SL.Market

avatar
Vice President - Equity Analytics
Vice President - Equity Analytics
swan03 wrote:Hi guys,

I have seen so many questions in this forum regarding Stock Market Words. I guess this will help beginners to understand the meaning of some common words.

There are currently two indices in the CSE
1. ASPI- The All Share Price Index
2. MPI - The Milanka Price Index

What are the type of shares?

1.Ordinary Shares (N) - A right to vote at the company General meeting.
2.Non-voting ordinary shares (X) - These shares have the characteristics of ordinary shares except the right to vote at the company General meeting.
3. Preference Shares (P) - Most preference shares have a pre-determined dividend rate which you are entitled to receive.
4. Warrants (W) - This is certificate giving you the right to buy shares at a stipulated price at a future date.

Stock Market words

1. Allotment letter - A document showing that you have been allotted a certain number of newly issued shares.
2. Annual general meeting (AGM) - Every company must have an AGM each year, to allow shareholders to vote on the accounts, directors and dividends and question the board on the company's affairs.
3. Annual Report - The yearly independently audited report to shareholders which must be produced by all publicly quoted companies.
4. Bargain - The term for any deal on the stock exchange, purchase or sale.
5. Bear Market - Someone who thinks that the price of a share or stock market prices in general are about to fall.
6. Bid price - The price you sell your stocks or shares.
7. Blue chip - The shares of large well established companies.
8. Bull Market - Someone who thinks that the price of a share or the market in general is about to rise.
9. Dividend - The part of a company's profits distributed to shareholders, usually on a regular basis. An interim dividend is paid at the half-year stage and a final dividend at the end of the full year.
10. Earnings Per Share (EPS) - A company's profits (after payment of interest and preference share dividends) dividend by the number of shares issued.
11. Liquid Stock - is a stock with a lot of volume that is easy to buy and sell.
12. Price-earnings ratio (P/E) - This is calculated by taking the current earnings (profits after certain deductions) of the company and dividing them by the number of shares issued. This gives the earnings by share figure. It is then divided into the current share price which gives the P/E ratio. See also Earnings per share.
13. Prospectus - An independently audited document detailing a company's financial history and current situation and published ahead of a new share issue.


How great You Are.......

$$$


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Great work Swan this will be very useful to new comers Smile...keep up the good work

milanka

avatar
Vice President - Equity Analytics
Vice President - Equity Analytics
Great !! You are adding value to this forum...

http://forum.srilankaequity.com/u188

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Hi,

Many many thanks for this explanation! Now, being a newbie I have few more n00b questions Surprised

1. So, "X" shares also get the same dividend except that we don't get the right to vote. From a small scale investor's perspective, does this mean that we're better off with "X" shares? I mean it's not that we can change any company decisions with our puny little amounts of voting shares right? Or is it the case that non-voting shares experience less capital gain compared to voting shares?

2. I saw some "R" type of shares, like REEF.R000, what are those?

3. Which companies provide "P" type of shares you mentioned? Is there a way I can search? (sounds more reliable) Smile

4. For warrant shares, where can I find the amount I need to pay in order to convert them to normal shares when the date arrives?

Thanks again Smile

evarts


Stock Trader
Hi,
I have 2 questions that I need help with.

01. When the a share is trading with the abbreviation "XR" next to it what does that mean? (ie Nation Lanka XR)

02. If a company announces a rights issue ie. 1:2 what does that mean?

Appreciate if anyone can help...

Evarts.

2011_NewComer

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
This is about Rights Issue
http://forum.srilankaequity.com/t1572-rights-issue-for-new-investors?highlight=rights

Be careful when buying Rights, because you have to pay some additional amount to convert them. So learn the basics before buying rights.
-------------------------------------------------------------------------

R mean Right
X mean Non Voting Shares
N mean Voting Shares

B=BONUS
W=WARRANTS
P=PREFERENCE
U=UNITS

copied from http://forum.srilankaequity.com/t2080-share-codes

nathanfornash


Equity Analytic
Equity Analytic
How about a share called D0000? What is this? (Saw this in glass)

2011_NewComer

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I think D is for debentures (not sure)

@evarts
1)
XR - Ex Rights - Shares of stock that are trading but no longer have rights attached because they have either expired, been transferred to another investor or been exercised. The rights originally assigned to the stockholder are, for whatever reason, no longer valid or no longer applicable to the stock.

If XR is a date that means to claim rights you have to buy before the XR date.

Similarly
XD - Ex Dividend - should have shares before this date to be eligible for Dividends
XC - Ex Scrip or Ex capitalisation - should have shares before this date to be eligible for Scrip

2) If 1:2 rights issued - For every two shares you own you are given the right to purchase one new share at a discounted price

a discussion about a rights issue, might be useful to you - http://forum.srilankaequity.com/t1884-lankem-development-rights-issue-help-needed

Experts please correct if I have written something wrong.

And some one will have to answer anubis's questions

Smile

ISURU

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
2011_NewComer wrote:I think D is for debentures (not sure)

@evarts
1)
XR - Ex Rights - Shares of stock that are trading but no longer have rights attached because they have either expired, been transferred to another investor or been exercised. The rights originally assigned to the stockholder are, for whatever reason, no longer valid or no longer applicable to the stock.

If XR is a date that means to claim rights you have to buy before the XR date.

Similarly
XD - Ex Dividend - should have shares before this date to be eligible for Dividends
XC - Ex Scrip or Ex capitalisation - should have shares before this date to be eligible for Scrip

2) If 1:2 rights issued - For every two shares you own you are given the right to purchase one new share at a discounted price

a discussion about a rights issue, might be useful to you - http://forum.srilankaequity.com/t1884-lankem-development-rights-issue-help-needed

Experts please correct if I have written something wrong.

And some one will have to answer anubis's questions

Smile
Yes D means debenture
An Excellent work.. Thanks a lot

$$$


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Hi ,

Explanations have been given .....Google any stock terminology that you don't know the meaning of and you get many answers on board....For new comers read the business section of the daily papers.....go through the entire CSE....look at Financial statements....If time and Money permit enrol in some Seminars on the subject.... actively get involved in forums such as these Smile

Of course if you google terminology and can not still understand we will all be more than willing to help out Smile

Happy Hunting!

swan03


Vice President - Equity Analytics
Vice President - Equity Analytics
$$$ wrote:Hi ,

Explanations have been given .....Google any stock terminology that you don't know the meaning of and you get many answers on board....For new comers read the business section of the daily papers.....go through the entire CSE....look at Financial statements....If time and Money permit enrol in some Seminars on the subject.... actively get involved in forums such as these Smile

Of course if you google terminology and can not still understand we will all be more than willing to help out Smile

Happy Hunting!

Good advice. One rep from me Smile

tkc

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@swan good article my friend....here is (+) rep. from me..... Smile

mark

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
swan03 wrote:Hi guys,

I have seen so many questions in this forum regarding Stock Market Words. I guess this will help beginners to understand the meaning of some common words.

There are currently two indices in the CSE
1. ASPI- The All Share Price Index
2. MPI - The Milanka Price Index

What are the type of shares?

1.Ordinary Shares (N) - A right to vote at the company General meeting.
2.Non-voting ordinary shares (X) - These shares have the characteristics of ordinary shares except the right to vote at the company General meeting.
3. Preference Shares (P) - Most preference shares have a pre-determined dividend rate which you are entitled to receive.
4. Warrants (W) - This is certificate giving you the right to buy shares at a stipulated price at a future date.

Stock Market words

1. Allotment letter - A document showing that you have been allotted a certain number of newly issued shares.
2. Annual general meeting (AGM) - Every company must have an AGM each year, to allow shareholders to vote on the accounts, directors and dividends and question the board on the company's affairs.
3. Annual Report - The yearly independently audited report to shareholders which must be produced by all publicly quoted companies.
4. Bargain - The term for any deal on the stock exchange, purchase or sale.
5. Bear Market - Someone who thinks that the price of a share or stock market prices in general are about to fall.
6. Bid price - The price you sell your stocks or shares.
7. Blue chip - The shares of large well established companies.
8. Bull Market - Someone who thinks that the price of a share or the market in general is about to rise.
9. Dividend - The part of a company's profits distributed to shareholders, usually on a regular basis. An interim dividend is paid at the half-year stage and a final dividend at the end of the full year.
10. Earnings Per Share (EPS) - A company's profits (after payment of interest and preference share dividends) dividend by the number of shares issued.
11. Liquid Stock - is a stock with a lot of volume that is easy to buy and sell.
12. Price-earnings ratio (P/E) - This is calculated by taking the current earnings (profits after certain deductions) of the company and dividing them by the number of shares issued. This gives the earnings by share figure. It is then divided into the current share price which gives the P/E ratio. See also Earnings per share.
13. Prospectus - An independently audited document detailing a company's financial history and current situation and published ahead of a new share issue.


good one akki..................... Smile Smile Smile Smile Smile Smile

swan03


Vice President - Equity Analytics
Vice President - Equity Analytics
Thanks Malli, And thank you everyone for giving me a strength.

$$$


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Smile

swan03


Vice President - Equity Analytics
Vice President - Equity Analytics
$$$ wrote:Smile

Yeah... Still Im learning..

nathanfornash


Equity Analytic
Equity Analytic
Dear all,

What is the share type called S0000?

ssuni

avatar
Manager - Equity Analytics
Manager - Equity Analytics
swan03 wrote:Thanks Malli, And thank you everyone for giving me a strength.

Hey,
If u can plz help like these words tooo... ex: BULLISH

2011_NewComer

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
ssuni wrote:
swan03 wrote:Thanks Malli, And thank you everyone for giving me a strength.

Hey,
If u can plz help like these words tooo... ex: BULLISH

Some links you could use
http://www.buzzle.com/articles/stock-terms-glossary-of-stock-market-terms-and-definitions.html
http://www.sportstradinginvestor.com/sports_trading/glossary/
http://www.mudraa.com/trading/10945/0/coomonly-used-words-in-share-marketpriyangshu.html
http://www.investmentguide.co.uk/shares17.htm

And I think many are using investopedia - http://www.investopedia.com/

Smile

Redbulls

avatar
Director - Equity Analytics
Director - Equity Analytics
Good one for beginners.
Thanks

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