1. Stock exchange

Specific facility where stocks are listed for sale/purchase. All stock exchanges in India are digital, and one can access them online through a brokerage firm.

2. Market capitalization:

It is a measure of what a company is worth on the open market, as well as the market’s perception of its prospects as it reflects what investors are willing to pay for its stock.

3. Bull market

A market that is on the rise, i.e. prices of shares in the market is increasing. It also means that the economy is in a good state, and the level of unemployment is low.

4. Bear market

A market that is in the fall, i.e. prices of shares in the market is declining. The economy is in a downfall, and unemployment levels are rising.

5. Risk tolerance

Degree of unpredictability investor is willing to take in their financial planning. A conservative investor favors investments that maintain their original investment.

6. Net worth

A measure of financial health, the Net worth is the result of total assets minus the total amount you owe. Positive net worth means good financial health and negative net worth means poor financial health.

7. Liquidity

Liquidity is the measure of the accessibility of your money. If you can get your money quickly, it is called Liquid money. Cash is the most liquid your money can be because you can access it immediately.

8. Diversification

Diversification is an asset allocation plan, which appropriately allocates assets among different types of investment to protect the investments while allowing growth potential.

9. Dividend

Dividend is a part of the profit distributed by a company among its shareholders.

10. Arbitrage

The practice of making a profit from the price difference between two or more markets, striking a combination of deals that capitalize upon the imbalance

Interested in reading more about Top Finance Strategies? Check out our collection.


Swati is a Chartered Accountant with 6 years of experience working with some of the biggest global brands. While her profession demands number-crunching, she is a story-teller at heart. She loves travelling and meeting new people. Connect with her on LinkedIn for stories and more!

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