investor jargon

Top 5 Jargon Every Investor Must Know Before Investing

Investing can be an excellent way to grow your wealth, but it often feels like learning a new language. Terms like “bull market” and “dividend yield” can be confusing for beginners. At KSL, we believe that understanding these terms is crucial for making informed investment decisions.

Here’s a guide to some of the most common investment jargon you should know.

1. Asset Allocation

Asset allocation refers to the process of dividing your investment portfolio among different asset categories, such as stocks, bonds, and cash. The goal is to balance risk and reward according to your specific risk tolerance, tim, and investment goals.

2. Bull Market

A bull market refers to a period during which the prices of securities, such as stocks, bonds, or commodities, are rising or are expected to rise. This optimistic scenario typically results in increased investor confidence and a robust economy.

3. Bear Market

A bear market refers to a period during which the prices of securities are falling or are expected to fall. This pessimistic scenario usually results in decreased investor confidence and a sluggish economy.

4. Averaging Down

Averaging down involves purchasing additional shares of an investment at a lower price than the original purchase price. By doing this, an investor reduces the average cost per share of their total holdings.

5. Diversification

Diversification is the strategy of spreading your investments across various assets to reduce risk. By not putting all your eggs in one basket, you can protect your portfolio from significant losses if one particular investment performs poorly.

At KSL, we believe that understanding these key terms can empower you to make smarter investment decisions. Whether you’re a novice or an experienced investor, having a firm grasp of investment jargon is an essential step toward achieving your investment goals.

If you have any questions or need personalized advice, our team of experts is here to help.

Happy investing!

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Investor Awareness

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs) issued vide BSE notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and NSE circular no. NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 other guidelines issued from time to time in this regard.

5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Attention Investors

Prevent Unauthorized Transactions in your trading and/or demat account – Update your
Mobile Number and / or email IDs with your Stock Broker and / or Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day / information of your transactions directly from Exchange on your mobile/email at the end of the day………………….issued in the interest of investors.

“KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.”

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.”