Ask Price
Lowest price at which a seller is willing to sell a share.
Bid Price
Highest price a buyer is willing to pay for a share.
Spread
Difference between the bid price and ask price.
Market Order
Instruction to buy or sell immediately at market price.
Limit Order
Instruction to buy or sell at a specific price.
Stop Loss
Automatic order placed to limit potential losses.
Take Profit
Automatic order used to secure profits at a target price.
Volume
Total number of shares traded during a period.
Liquidity
Ease of buying or selling without affecting market price.
Volatility
Degree of price fluctuation in a security.
Bull Market
Market condition where prices are generally rising.
Bear Market
Market condition where prices are generally falling.
Index
Group of stocks used to measure market performance.
KSE-100 Index
Benchmark index of Pakistan Stock Exchange.
Equity
Ownership interest in a company through shares.
Share
Small unit representing ownership in a company.
Dividend
Portion of company profit paid to shareholders.
Dividend Yield
Dividend income expressed as a percentage of price.
Capital Gain
Profit earned by selling an asset at a higher price.
Capital Loss
Loss incurred by selling an asset at a lower price.
Market Capitalization
Total market value of a company’s outstanding shares.
Blue Chip Stock
Shares of large, stable, and reputable companies.
Price-Earnings Ratio (P/E)
Share price divided by earnings per share.
Earnings Per Share (EPS)
Company profit allocated per outstanding share.
Book Value
Net asset value of a company as per records.
IPO
Initial Public Offering of shares to the public.
Rights Issue
Offer to existing shareholders to buy new shares.
Bonus Shares
Free additional shares issued to shareholders.
Face Value
Nominal value printed on a share certificate.
Free Float
Shares available for public trading.
Broker
Licensed intermediary executing trades for investors.
CDC
Central Depository Company holding electronic shares.
NCCPL
Entity responsible for clearing and settlement.
Settlement
Completion of cash and share exchange.
T+2 Settlement
Trade settles two business days after execution.
Margin Trading
Trading using borrowed funds.
Collateral
Asset pledged to secure borrowing.
Leverage
Use of borrowed money to increase exposure.
Short Selling
Selling borrowed shares expecting price decline.
Hedging
Strategy used to reduce investment risk.
Diversification
Spreading investments to reduce overall risk.
Portfolio
Collection of an investor’s financial assets.
Risk Tolerance
Ability to handle investment losses.
Return
Profit or loss from an investment.
Yield
Income generated from an investment.
Bond
Debt instrument issued by company or government.
Coupon
Interest payment on a bond.
Maturity
Date when bond principal is repaid.
Mutual Fund
Professionally managed investment pool.
NAV
Net Asset Value per unit of a fund.
