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Equity

Trading Basics

Ownership interest in a company, represented by shares. Equity shareholders bear the highest risk but also have the potential for the highest returns.

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Related Terms

Ask Price

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

Average Price

The weighted average cost at which you purchased shares of a stock, calculated by dividing total cos...

Basis Point

One-hundredth of a percentage point (0.01%). Used to describe small changes in interest rates, yield...

Bid Price

The highest price a buyer is willing to pay for a security. Together with the ask price, it forms th...

Brokerage

The commission or fee charged by a broker for executing buy or sell orders. Discount brokers in Indi...

CMP

Current Market Price. The latest traded price of a security on the exchange. Used as the reference f...

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