Navigating the stock market requires clarity on essential metrics: share price, target price, and stop loss. These tools help investors make smart choices amid volatility.
At its core, the **share price** is the live price quoted for a stock on exchanges like NSE or BSE. It reflects investor sentiment and changes with news, results, or global events.
Analysts set a **target price** as a future benchmark, predicting how high (or low) the stock could go. This estimate draws from valuation models like P/E ratios and growth projections, guiding buy or sell decisions.
To safeguard investments, use **stop loss** – an automatic order to exit a position at a specific lower price. For example, purchasing shares at ₹200 with a ₹180 stop loss caps your downside risk to 10%.
By differentiating these, novice and seasoned investors alike can trade with confidence, optimize portfolios, and avoid common pitfalls in India’s bustling equity markets.
