Stock Market Terms Every Indian Investor Should Know – Beginner’s Glossary 2025

Stock Market Terms Every Investor Should Know – Beginner’s Glossary (2025 Edition)

Entering the stock market can feel overwhelming—especially when you’re faced with financial jargon that seems complex and intimidating. But behind every confusing term lies a simple idea. The key to confident investing is understanding the language of the market.

This guide explains essential stock market terms every Indian investor should know in 2025. Whether you’re opening your first Demat account or starting a SIP, this glossary will help you speak the market’s language.

1. Stock / Share

A unit of ownership in a company. When you buy shares, you own a part of that company.

2. Equity

Represents ownership in a company. Equity investors benefit from rising stock prices and dividends.

3. Demat Account

A digital account used to hold your stocks and securities electronically. Mandatory for all investors in India.

4. Trading Account

Linked to your Demat and bank accounts. It allows you to buy and sell shares on the stock exchange.

5. Stock Exchange

A regulated platform where stocks are traded—such as the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

6. Bull Market

A market trend where prices are rising or expected to rise.

7. Bear Market

A market trend where prices are falling or expected to fall.

8. IPO (Initial Public Offering)

When a private company offers its shares to the public for the first time via the primary market.

9. F&O (Futures & Options)

Derivative instruments that allow investors to trade contracts based on the future price of stocks or indices.

10. P/E Ratio (Price-to-Earnings)

Valuation metric that shows how expensive a stock is compared to its earnings. A higher P/E could mean overvaluation.

11. Dividend

A portion of a company’s profit distributed to shareholders, usually on a quarterly or annual basis.

12. Stop Loss

An order that limits your losses by automatically selling your stock if the price falls below a set level.

13. Market Order

An instruction to buy/sell a stock immediately at the current market price.

14. Limit Order

An order to buy/sell a stock at a specific price or better. It won’t execute unless the price condition is met.

15. Index

A group of selected stocks representing a segment of the market. E.g., NIFTY 50, SENSEX, NIFTY Bank.

16. SIP (Systematic Investment Plan)

A disciplined method of investing fixed amounts regularly, especially in mutual funds.

17. Mutual Fund

An investment vehicle that pools money from investors to buy a diversified portfolio of stocks or bonds.

18. Volatility

The rate at which the price of a stock or market fluctuates. Higher volatility means greater price swings.

19. Liquidity

How easily you can buy or sell a stock without affecting its price. Large-cap stocks usually offer high liquidity.

20. Brokerage

The fee charged by your stockbroker for executing trades. At One Solution, equity delivery is brokerage-free.

Final Thoughts

Familiarity with these stock market terms will boost your confidence and reduce decision-making errors. Whether you’re just starting out or looking to refine your strategy, understanding the language of investing is a major step forward.

At One Solution, we make investing easy to understand—with expert guidance, real-time tools, and transparent platforms designed for every level of investor.