The stock market can be a complex and intimidating place, especially for beginners. There are many terms and concepts that can be confusing, making it difficult to understand how things work. This blog post aims to demystify some of the most basic stock market terms, so you can feel more confident navigating the investment world. 1. P/E Ratio (Price-to-Earnings Ratio) The P/E ratio is a metric used to compare a company's stock price to its earnings per share (EPS). It essentially tells you how much you are paying for each rupee of a company's earnings. A higher P/E ratio can indicate that a stock is more expensive relative to its earnings, while a lower P/E ratio can indicate that a stock is cheaper. However, it is important to remember that the P/E ratio is just one factor to consider when evaluating a stock, and it should be compared to similar companies within the same industry. 2. Dividends Dividends are a portion of a company's profits that are paid out to its sharehol
Candlesticks are a popular type of chart used in technical analysis to visualize the price movements of an asset. A candlestick chart displays the open, high, low, and close prices of a financial instrument for a specific period of time. There are several types of candlesticks, each with its own unique characteristics and significance. Here are some of the most common types of candlesticks: Bullish Candlestick: A bullish candlestick indicates that the price of an asset has increased during the specified time period. It is usually colored green or white, with a long body and a short lower wick. Bearish Candlestick: A bearish candlestick indicates that the price of an asset has decreased during the specified time period. It is usually colored red or black, with a long body and a short upper wick. Doji Candlestick: A doji candlestick has a small body and no or very small wicks. It indicates indecision in the market, with neither buyers nor sellers having control over the price of the ass