Investment terms One should know. Before investing in stocks,every investor should know some basic terms so that he/she can trade efficiently and maximise his/her profits from his/her portfolio.Stock market terminology relates to industry-specific jargons which are used in the stock markets regularly. The terms are as follows: i) Turnover : Turnover is an accounting concept that calculates how quickly a business conducts its operations.Turnover in accounting is how much a business makes in sales during a period. Formula:Cost of Goods Sold/Average Inventory. Image Courtesy: Unknown ii) Market Capitalisation : Market capitalization, commonly called market cap, is the market value of a publicly traded company's outstanding shares. Market capitalization is equal to the share price multiplied by the number of shares outstanding. Formula:Price of stock ×No.of shares in market. Image Courtesy: Investopedia iii) P/E R...
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