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Everyone should know 19 financial terms before any investment... Stock: A security that represents the ownership of a fraction of the issuing corporation. IPO: The first sale of the company's share to the public allowing it to raise capital by listing on the stock exchange. Blue-Chip Stock: Stokes of stable, reputable and established companies. Penny Stock: Low priced highly volatile stocks, often with the small market capitalization. Like Bull Market: A market smart where prices are rising, signaling investor optimism and economic growth. Bear Market: A market where bases are falling, reflecting and potential economic downturns. Dividend: A portion of companies profits distributed to shareholders. Payout Ratio: The percentage of companies profit debt is distributed to shareholders in the form of dividends. Bonus Shares: Additional shares given to existing shareholders at no extra cost increasing share count. Stock split: A corporate action dividing shares to increase liquidity making them more affordable to investors. Buyback: When a company buys its own shares on reducing supply and increasing the value of remaining shares. NAV: Missionary value of mutual funds calculated as (total assets total liabilities)/ total number of MF units. Payout Ratio: The percentage of a company's profit that is distributed to shareholders in the form of dividends. NFO: A mutual funds first time offer of units, similar to an IPO stock. Fund of Funds: Mutual fund investing in other mutual funds, ex Motilal Oswal Nasdaq 100 FOF. Lock in period: The mandatory upholding an investor can redeem a mutual fund common in tax saving funds. Liquid Fund: A mutual fund investing short term debt for liquidity offering safety but lower returns. Capital Gain: The profit made from selling assets like stocks or mutual funds. Capital Loss: The loss made from selling assets like stocks or mutual funds.