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Glossary · PSX term

Market sentiment.

Market sentiment is the overall mood of investors toward the market, ranging from fearful to greedy.

Definition

Sentiment is driven by news, economic data, politics, and momentum, and can push prices away from fundamentals in the short term. It is hard to measure precisely but shows up in volume, volatility, and how the market reacts to news.

Worked example

If the KSE-100 rises sharply on rumours of an IMF deal before anything is signed, that is sentiment-driven buying.

Related on PSX Clarity

Fear of missing out (FOMO)

More glossary terms

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Market capitalization

Market capitalization is the total market value of a listed company. It is calculated by multiplying share price by shares outstanding and helps investors compare company size.

Market breadth measures how many stocks are rising versus falling, beyond just the index level.

A market halt is a temporary, exchange-wide pause in trading triggered by a large index move.

A market order buys or sells immediately at the best available current price.

Margin financing

Margin financing lets you buy shares using borrowed money, putting up only part of the value yourself.

A margin call is a demand to add funds when your leveraged position loses value past a limit.

A mutual fund pools money from many investors to buy a managed portfolio of assets.

Material information

Material information is any fact that could reasonably influence a stock's price or an investor's decision.

Margin of safety

Margin of safety is the gap between a stock's estimated intrinsic value and a lower price you pay.