The highest and lowest prices at which a stock has traded during the past 52 weeks (one year). Stocks near 52-week highs may indicate strength; near 52-week lows may indicate weakness or value.
Section 80C of the Income Tax Act allows deductions up to Rs 1.5 lakh per year for investments in ELSS mutual funds, PPF, EPF, NPS, and other specified instruments.
Asset Management Company. A firm that invests pooled funds from investors into securities such as stocks and bonds. Examples in India include SBI MF, HDFC AMC, and ICICI Prudential AMC.
Assets Under Management. The total market value of investments managed by a mutual fund or portfolio manager. Larger AUM generally indicates investor confidence.
The lowest price at which a seller is willing to sell a security. Also called the offer price. The difference between ask and bid price is the spread.
The weighted average cost at which you purchased shares of a stock, calculated by dividing total cost by total quantity. Used for P&L calculations in UseMoney.
Bombay Stock Exchange. India's oldest stock exchange, established in 1875, located in Mumbai. Its benchmark index is the Sensex.
One-hundredth of a percentage point (0.01%). Used to describe small changes in interest rates, yields, or expense ratios. 100 basis points = 1%.
A market condition where prices are falling or expected to fall, typically defined as a decline of 20% or more from recent highs.
A measure of a stock's volatility relative to the overall market. Beta of 1 means the stock moves with the market; above 1 means more volatile; below 1 means less volatile.
The highest price a buyer is willing to pay for a security. Together with the ask price, it forms the bid-ask spread.
Large, well-established companies with a history of reliable performance, strong financials, and consistent dividends. In India, companies like Reliance, TCS, and HDFC Bank are considered blue chips.
Free additional shares given by a company to existing shareholders in a fixed ratio (e.g., 1:1 means one free share for every share held). The stock price adjusts proportionally.
The net asset value of a company, calculated as total assets minus intangible assets and liabilities, divided by number of outstanding shares.
The commission or fee charged by a broker for executing buy or sell orders. Discount brokers in India typically charge flat fees (e.g., Rs 20 per order) or zero for delivery trades.
A market condition where prices are rising or expected to rise, characterized by investor optimism and sustained upward trends.
When a company repurchases its own shares from the market, reducing the number of outstanding shares. Often signals that the company believes its stock is undervalued.
Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how an investment would have grown if it grew at a steady rate.
Current Market Price. The latest traded price of a security on the exchange. Used as the reference for real-time P&L calculations.
Cash Reserve Ratio. The percentage of deposits that banks must keep with the RBI as liquid cash. Changes in CRR affect liquidity in the banking system and indirectly impact stock markets.
A derivative contract that gives the buyer the right (but not obligation) to buy an underlying asset at a specified strike price before or on the expiry date.
The profit realized when a security is sold for more than its purchase price. In India, classified as short-term (held <=12 months) or long-term (held >12 months) for tax purposes.
A mechanism that temporarily halts trading on a stock or the entire market when prices move beyond specified limits (upper or lower circuit). SEBI sets these limits to prevent extreme volatility.
A period where a stock's price moves sideways within a narrow range, indicating indecision between buyers and sellers before a breakout or breakdown.
The total accumulated amount of money in an investment portfolio or fund. In FIRE planning, the target corpus is the amount needed to sustain retirement expenses.
Domestic Institutional Investor. Indian institutions such as mutual funds, insurance companies, and banks that invest in the stock market. DII flows often counterbalance FII activity.
Draft Red Herring Prospectus. A preliminary document filed with SEBI by a company planning an IPO, containing financial details and information about the offering.
Differential Voting Rights shares. Shares that have fewer voting rights compared to ordinary shares but may offer higher dividends. Tata Motors DVR is a well-known example in India.
See Intraday Trading. Buying and selling securities within the same trading day to profit from short-term price movements.
A leverage ratio calculated by dividing total debt by shareholders' equity. A lower ratio indicates less reliance on borrowed funds. Generally, below 1 is considered healthy.
Buying shares and holding them in your demat account beyond the trading day (T+1 settlement). Unlike intraday, you take actual ownership of the shares.
A dematerialized account that holds shares and securities in electronic form, eliminating the need for physical certificates. Required to trade on Indian stock exchanges.
A portion of a company's profits distributed to shareholders, usually per share. Can be in the form of cash or additional shares. Dividend yield is calculated as annual dividend divided by share price.
Annual dividend per share divided by the current share price, expressed as a percentage. A high yield may indicate value but could also signal a falling stock price.
Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance that strips out non-operational costs.
Earnings Per Share. A company's net profit divided by its total outstanding shares, indicating profitability on a per-share basis.
Exchange-Traded Fund. A fund that tracks an index, commodity, or basket of assets and is traded on stock exchanges like regular shares. Nifty BeES and Gold BeES are popular Indian ETFs.
Ownership interest in a company, represented by shares. Equity shareholders bear the highest risk but also have the potential for the highest returns.
The date on or after which a stock trades without the declared dividend, bonus, or split. You must own the stock before the ex-date to be eligible for the corporate action.
The annual fee charged by a mutual fund or ETF as a percentage of assets under management. Lower expense ratios mean more of your returns stay with you.
Futures & Options. Derivative instruments traded on NSE/BSE that derive their value from underlying assets like stocks or indices. Used for hedging and speculation.
First In, First Out. A method of matching buy and sell trades where the earliest purchased shares are considered sold first. UseMoney uses FIFO for trade pairing.
Foreign Institutional Investor. An investor or fund registered in a country outside India that invests in Indian financial markets. FII flows significantly impact market direction.
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to achieve financial independence and retire much earlier than traditional retirement age.
Follow-on Public Offer. An issuance of shares by a company that is already publicly listed, used to raise additional capital.
The nominal or par value of a share as stated in the company's charter. In India, common face values are Rs 1, Rs 2, Rs 5, or Rs 10. Not to be confused with market price.
The portion of a company's shares that are available for trading by the general public, excluding promoter holdings, locked-in shares, and strategic holdings.
A method of evaluating a security by examining financial statements, industry conditions, management quality, and economic factors to determine its intrinsic value.
A standardized agreement to buy or sell an asset at a predetermined price on a specific future date. In India, stock and index futures expire on the last Thursday of each month.
When a stock opens significantly higher (gap up) or lower (gap down) than the previous day's close, creating a visible gap on the price chart. Often caused by overnight news or events.
A lump-sum benefit paid by an employer to an employee upon retirement or resignation, based on years of service. Relevant for FIRE planning as a retirement income component.
An over-allotment option in an IPO that allows underwriters to sell additional shares (up to 15% more) if demand exceeds the original offering size.
High Net-worth Individual. In IPO context, investors applying for shares worth more than Rs 2 lakh are categorized as HNIs (Non-Institutional Investors).
An investment strategy to reduce risk of adverse price movements. In India, traders commonly hedge equity positions using Nifty or stock futures and options.
The duration for which an investor holds a security. Determines tax treatment: equity held over 12 months qualifies for LTCG rates in India.
Initial Public Offering. The first time a company offers its shares to the public on a stock exchange, allowing retail investors to buy ownership stakes.
A mutual fund or ETF that replicates a market index (like Nifty 50 or Sensex) by holding the same stocks in the same proportions. Known for low expense ratios and passive management.
The rate at which the general level of prices for goods and services rises, eroding purchasing power. Critical for FIRE planning — your corpus must grow faster than inflation.
Illegal practice of trading securities based on material, non-public information. SEBI actively monitors and penalizes insider trading in Indian markets.
Buying and selling securities within the same trading day. All positions are squared off before market close, with no overnight holding.
Long Term Capital Gains. Profits from selling equity shares held for more than 12 months. In India, LTCG above 1.25 lakh per year is taxed at 12.5%.
Companies ranked 1st to 100th by market capitalization on NSE. These are well-established, financially stable companies like Reliance, TCS, and HDFC Bank.
Using borrowed capital to increase the potential return of an investment. In F&O trading, leverage allows controlling larger positions with smaller margin amounts.
An order to buy or sell a stock at a specific price or better. A buy limit order executes at or below the limit price; a sell limit order at or above.
The ease with which a security can be bought or sold without significantly affecting its price. High-volume stocks like Reliance and TCS have high liquidity.
The fixed number of shares in one F&O contract. Each stock has a different lot size set by the exchange (e.g., Nifty lot size is 25, Bank Nifty is 15).
Investing a large amount of money at one time, as opposed to spreading it over regular intervals (SIP). Timing matters more with lump sum investing.
The collateral deposited with a broker to cover the risk of a trade. In F&O, initial margin and maintenance margin are required. In intraday, brokers offer margin funding for higher exposure.
A demand from a broker for the investor to deposit additional funds or securities when the margin account falls below the maintenance requirement.
Market Capitalization. The total market value of a company's outstanding shares, calculated as share price multiplied by total shares outstanding.
A firm or individual that provides liquidity by continuously quoting buy and sell prices for securities, facilitating smooth trading.
An order to buy or sell a stock immediately at the best available current price. Guarantees execution but not the exact price.
Companies ranked 101st to 250th by market capitalization on NSE. These offer a balance between growth potential and stability.
A technical indicator that smooths price data over a specific period (e.g., 50-day or 200-day MA). Used to identify trends and support/resistance levels.
A professionally managed investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
Net Asset Value. The per-unit value of a mutual fund, calculated by dividing the total value of all assets minus liabilities by the number of outstanding units.
Non-Convertible Debenture. A fixed-income debt instrument that cannot be converted into equity. Offers higher interest rates than fixed deposits but carries credit risk.
New Fund Offer. The initial subscription period for a new mutual fund scheme, similar to an IPO for stocks. Units are typically offered at Rs 10 NAV.
Non-Performing Asset. A loan or advance where the borrower has stopped making interest or principal payments. A key metric for evaluating banking stocks.
Non-Resident Indians can invest in Indian markets through Portfolio Investment Scheme (PIS) via NRE/NRO demat accounts with SEBI-registered brokers.
National Stock Exchange of India. The leading stock exchange in India by trading volume, headquartered in Mumbai.
The benchmark stock market index of NSE, comprising 50 of the largest and most liquid Indian companies across 13 sectors.
Offer For Sale. A mechanism for promoters of listed companies to sell shares to the public through the stock exchange. Common for government disinvestment.
The total number of outstanding F&O contracts that have not been settled. Rising open interest with rising prices suggests a strong uptrend.
The price paid by the buyer to the seller for an options contract. Comprises intrinsic value (in-the-money amount) and time value.
Profit and Loss. The net gain or loss from your investments. UseMoney tracks both realized P&L (closed trades) and unrealized P&L (open holdings).
Price-to-Book Ratio. A stock's market price divided by its book value per share. A lower P/B may indicate an undervalued stock.
Price-to-Earnings Ratio. A stock's current price divided by its earnings per share. Used to assess whether a stock is overvalued or undervalued relative to its earnings.
Permanent Account Number. A 10-digit alphanumeric identity issued by the Income Tax Department. Mandatory for all stock market transactions and KYC in India.
Public Provident Fund. A government-backed long-term savings scheme with tax benefits under Section 80C. Lock-in period of 15 years. Relevant for FIRE planning as a safe asset.
Shares held in a demat account that are pledged as collateral to a lender or broker. Pledged shares remain in your account but cannot be sold until released.
The collection of all financial investments held by an individual or institution, including stocks, mutual funds, bonds, and other assets.
The founders or controlling shareholders of a company. High promoter holding (above 50%) can indicate management confidence. SEBI mandates disclosure of promoter holdings.
A derivative contract that gives the buyer the right (but not obligation) to sell an underlying asset at a specified strike price before or on the expiry date.
Reserve Bank of India. India's central bank that controls monetary policy, interest rates, and banking regulation. RBI decisions significantly impact stock and bond markets.
Return on Capital Employed. A profitability ratio that measures how efficiently a company generates profits from its total capital (equity + debt).
Return on Equity. Net income divided by shareholders' equity, measuring how effectively a company uses equity to generate profits. Higher ROE indicates better profitability.
Relative Strength Index. A momentum indicator ranging from 0 to 100. RSI above 70 suggests overbought conditions; below 30 suggests oversold conditions.
The date set by a company to determine which shareholders are eligible to receive dividends, bonuses, or participate in rights issues.
A price level where selling pressure tends to prevent a stock from rising further. A technical analysis concept used to identify potential exit points.
An offer by a company to existing shareholders to purchase additional shares at a discounted price, in proportion to their current holdings.
The strategy of investing a fixed amount at regular intervals (via SIP), which automatically buys more units when prices are low and fewer when prices are high.
Securities and Exchange Board of India. The regulatory authority that oversees and regulates the securities market in India to protect investor interests.
Sovereign Gold Bond. Government securities denominated in grams of gold, issued by RBI. Offer an alternative to holding physical gold with 2.5% annual interest.
Systematic Investment Plan. A method of investing a fixed amount regularly (usually monthly) in a mutual fund, enabling rupee-cost averaging and disciplined investing.
Securities Lending and Borrowing. A mechanism where an investor lends securities they own to a borrower in exchange for a fee, facilitating short selling.
Short Term Capital Gains. Profits from selling equity shares held for 12 months or less. In India, STCG on equity is taxed at 20%.
Securities Transaction Tax. A tax levied on every purchase and sale of securities listed on Indian stock exchanges. Applied at the time of transaction.
Systematic Withdrawal Plan. A facility to withdraw a fixed amount from a mutual fund at regular intervals. Often used in retirement to create a steady income stream.
The movement of investment capital from one industry sector to another as investors anticipate the next stage of the economic cycle.
The benchmark index of BSE (Bombay Stock Exchange), comprising 30 of the largest and most actively traded companies on BSE.
Companies ranked 251st and below by market capitalization on NSE. These are smaller companies with higher growth potential but also higher risk.
A corporate action where a company divides its existing shares into multiple shares (e.g., 1:5 split turns one Rs 500 share into five Rs 100 shares). Total value stays the same.
An order placed to sell a security when it reaches a specific price, designed to limit potential losses on a position. Essential for risk management.
A price level where buying pressure tends to prevent a stock from falling further. A technical analysis concept used to identify potential entry points.
India's stock settlement cycle where trades settle one business day after execution. Shares are credited/debited to demat accounts on T+1.
A method of evaluating securities by analyzing price charts, volume, and statistical indicators. Focuses on historical price patterns to predict future movements.
The rate at which an option's value decreases as it approaches expiry. Options lose time value faster as expiration nears, which benefits option sellers.
A dynamic stop loss that moves with the price. If a stock rises, the stop loss rises too, locking in profits while still providing downside protection.
Unit Linked Insurance Plan. An insurance-cum-investment product that offers both life cover and market-linked returns. Has higher charges compared to term insurance + mutual funds.
The profit or loss on open holdings calculated at the current market price. It becomes realized P&L only when the position is closed (sold).
The maximum price a stock can rise (upper) or fall (lower) in a single trading day. When hit, trading is halted. SEBI sets circuit limits at 2%, 5%, 10%, or 20%.
Volume Weighted Average Price. The average price a stock traded at throughout the day, weighted by volume. Used by institutional traders to assess trade execution quality.
A statistical measure of the dispersion of returns for a security. Higher volatility means the price can change dramatically in either direction over a short period.
The number of shares or contracts traded during a given period. High volume indicates strong interest and liquidity; low volume may signal weak conviction.
A curated list of securities you are monitoring without owning. UseMoney allows you to create watchlists to track potential investments before committing capital.
Current assets minus current liabilities. A measure of a company's short-term financial health and its ability to meet day-to-day operational expenses.
Year To Date. The period from the beginning of the current calendar year to the present date. YTD returns show how an investment has performed since January 1st.
The income return on an investment, expressed as a percentage. For stocks, this is dividend yield; for bonds, it is the coupon rate relative to the current price.