Stock Market Glossary

Ask Price

The lowest price at which a seller is willing to sell a security. Also known as the offer price.

Bear Market

A market condition characterized by falling prices, typically defined as a decline of 20% or more from recent highs.

Beta

A measure of a stock's volatility relative to the overall market. A beta of 1 indicates the stock moves with the market.

Higher beta means more volatility; lower beta means less.

Bid Price

The highest price a buyer is willing to pay for a security at a given time.

Blue Chip Stocks

Shares of large, well-established companies with a history of stable earnings and reliable performance.

Bursa Malaysia

The stock exchange of Malaysia, formerly known as Kuala Lumpur Stock Exchange (KLSE).

Bull Market

A market condition characterized by rising prices and optimistic investor sentiment.

Capital Gains

The profit earned when an investment is sold for more than its purchase price.

Capitalization

See Market Capitalization

Diversification

A risk management strategy that involves spreading investments across various assets to reduce exposure to any single investment.

This doesn't guarantee profits or protect against losses.

Dividend

A portion of a company's earnings distributed to shareholders, typically on a quarterly basis.

Dividend Yield

The annual dividend payment divided by the stock price, expressed as a percentage.

EPS (Earnings Per Share)

A company's profit divided by the number of outstanding shares, indicating profitability on a per-share basis.

Exchange

A marketplace where securities are bought and sold, such as NYSE, NASDAQ, or Bursa Malaysia.

Fundamental Analysis

A method of evaluating a stock by examining related economic, financial, and other qualitative factors.

Index

A statistical measure of changes in a representative group of stocks, used to gauge market performance.

Initial Public Offering (IPO)

The first time a company offers its stock to the public, transitioning from private to public ownership.

Limit Order

An order to buy or sell a stock at a specific price or better.

Liquidity

The ease with which an asset can be bought or sold without significantly affecting its price.

Long Position

An investment where the investor owns the security, anticipating price appreciation.

Market Capitalization

The total market value of a company's outstanding shares, calculated by multiplying share price by number of shares.

Market Order

An order to buy or sell a stock immediately at the best available current price.

P/E Ratio

Price-to-Earnings ratio. The stock price divided by earnings per share, indicating how much investors pay per dollar of earnings.

Portfolio

A collection of investments held by an individual or institution.

Rebalancing

The process of realigning portfolio weights by buying or selling assets to maintain the desired asset allocation.

Securities Commission Malaysia (SC)

The regulatory body overseeing the Malaysian capital market.

Share

A single unit of ownership in a company or financial asset.

Short Selling

An advanced strategy where an investor sells borrowed shares, hoping to buy them back at a lower price.

Involves significant risk and is not suitable for beginners.

Stock Split

When a company divides its existing shares into multiple shares, proportionally adjusting the price.

Stop-Loss Order

An order to sell a stock when it reaches a specified price, designed to limit potential losses.

Technical Analysis

A method of evaluating securities by analyzing statistical trends from trading activity, such as price and volume.

Volatility

A statistical measure of the dispersion of returns, indicating how much a security's price fluctuates.

Volume

The number of shares traded during a specific period, indicating market activity.

Yield

The income return on an investment, typically expressed as an annual percentage.