Financial Glossary
Understanding financial terminology is crucial for making informed investment decisions. Browse our comprehensive glossary of stock market, trading, and investment terms.
Understanding financial terminology is crucial for making informed investment decisions. Browse our comprehensive glossary of stock market, trading, and investment terms.
132 terms found
Asset Management Company. A firm that invests pooled funds from investors into securities such as st...
Assets Under Management. The total market value of investments managed by a mutual fund or portfolio...
The lowest price at which a seller is willing to sell a security. Also called the offer price. The d...
The weighted average cost at which you purchased shares of a stock, calculated by dividing total cos...
Bombay Stock Exchange. India's oldest stock exchange, established in 1875, located in Mumbai. Its be...
One-hundredth of a percentage point (0.01%). Used to describe small changes in interest rates, yield...
A market condition where prices are falling or expected to fall, typically defined as a decline of 2...
A measure of a stock's volatility relative to the overall market. Beta of 1 means the stock moves wi...
The highest price a buyer is willing to pay for a security. Together with the ask price, it forms th...
Large, well-established companies with a history of reliable performance, strong financials, and con...
Free additional shares given by a company to existing shareholders in a fixed ratio (e.g., 1:1 means...
The net asset value of a company, calculated as total assets minus intangible assets and liabilities...
The commission or fee charged by a broker for executing buy or sell orders. Discount brokers in Indi...
A market condition where prices are rising or expected to rise, characterized by investor optimism a...
When a company repurchases its own shares from the market, reducing the number of outstanding shares...
Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how...
Current Market Price. The latest traded price of a security on the exchange. Used as the reference f...
Cash Reserve Ratio. The percentage of deposits that banks must keep with the RBI as liquid cash. Cha...
A derivative contract that gives the buyer the right (but not obligation) to buy an underlying asset...
The profit realized when a security is sold for more than its purchase price. In India, classified a...
A mechanism that temporarily halts trading on a stock or the entire market when prices move beyond s...
A period where a stock's price moves sideways within a narrow range, indicating indecision between b...
The total accumulated amount of money in an investment portfolio or fund. In FIRE planning, the targ...
Domestic Institutional Investor. Indian institutions such as mutual funds, insurance companies, and...
Draft Red Herring Prospectus. A preliminary document filed with SEBI by a company planning an IPO, c...
Differential Voting Rights shares. Shares that have fewer voting rights compared to ordinary shares...
See Intraday Trading. Buying and selling securities within the same trading day to profit from short...
A leverage ratio calculated by dividing total debt by shareholders' equity. A lower ratio indicates...
Buying shares and holding them in your demat account beyond the trading day (T+1 settlement). Unlike...
A dematerialized account that holds shares and securities in electronic form, eliminating the need f...
A portion of a company's profits distributed to shareholders, usually per share. Can be in the form...
Annual dividend per share divided by the current share price, expressed as a percentage. A high yiel...
Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating...
Earnings Per Share. A company's net profit divided by its total outstanding shares, indicating profi...
Exchange-Traded Fund. A fund that tracks an index, commodity, or basket of assets and is traded on s...
Ownership interest in a company, represented by shares. Equity shareholders bear the highest risk bu...
The date on or after which a stock trades without the declared dividend, bonus, or split. You must o...
The annual fee charged by a mutual fund or ETF as a percentage of assets under management. Lower exp...
Futures & Options. Derivative instruments traded on NSE/BSE that derive their value from underlying...
First In, First Out. A method of matching buy and sell trades where the earliest purchased shares ar...
Foreign Institutional Investor. An investor or fund registered in a country outside India that inves...
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to achie...
Follow-on Public Offer. An issuance of shares by a company that is already publicly listed, used to...
The nominal or par value of a share as stated in the company's charter. In India, common face values...
The portion of a company's shares that are available for trading by the general public, excluding pr...
A method of evaluating a security by examining financial statements, industry conditions, management...
A standardized agreement to buy or sell an asset at a predetermined price on a specific future date....
When a stock opens significantly higher (gap up) or lower (gap down) than the previous day's close,...
A lump-sum benefit paid by an employer to an employee upon retirement or resignation, based on years...
An over-allotment option in an IPO that allows underwriters to sell additional shares (up to 15% mor...
High Net-worth Individual. In IPO context, investors applying for shares worth more than Rs 2 lakh a...
An investment strategy to reduce risk of adverse price movements. In India, traders commonly hedge e...
The duration for which an investor holds a security. Determines tax treatment: equity held over 12 m...
Initial Public Offering. The first time a company offers its shares to the public on a stock exchang...
A mutual fund or ETF that replicates a market index (like Nifty 50 or Sensex) by holding the same st...
The rate at which the general level of prices for goods and services rises, eroding purchasing power...
Illegal practice of trading securities based on material, non-public information. SEBI actively moni...
Buying and selling securities within the same trading day. All positions are squared off before mark...
Long Term Capital Gains. Profits from selling equity shares held for more than 12 months. In India,...
Companies ranked 1st to 100th by market capitalization on NSE. These are well-established, financial...
Using borrowed capital to increase the potential return of an investment. In F&O trading, leverage a...
An order to buy or sell a stock at a specific price or better. A buy limit order executes at or belo...
The ease with which a security can be bought or sold without significantly affecting its price. High...
The fixed number of shares in one F&O contract. Each stock has a different lot size set by the excha...
Investing a large amount of money at one time, as opposed to spreading it over regular intervals (SI...
The collateral deposited with a broker to cover the risk of a trade. In F&O, initial margin and main...
A demand from a broker for the investor to deposit additional funds or securities when the margin ac...
Market Capitalization. The total market value of a company's outstanding shares, calculated as share...
A firm or individual that provides liquidity by continuously quoting buy and sell prices for securit...
An order to buy or sell a stock immediately at the best available current price. Guarantees executio...
Companies ranked 101st to 250th by market capitalization on NSE. These offer a balance between growt...
A technical indicator that smooths price data over a specific period (e.g., 50-day or 200-day MA). U...
A professionally managed investment fund that pools money from many investors to purchase a diversif...
Net Asset Value. The per-unit value of a mutual fund, calculated by dividing the total value of all...
Non-Convertible Debenture. A fixed-income debt instrument that cannot be converted into equity. Offe...
New Fund Offer. The initial subscription period for a new mutual fund scheme, similar to an IPO for...
Non-Performing Asset. A loan or advance where the borrower has stopped making interest or principal...
Non-Resident Indians can invest in Indian markets through Portfolio Investment Scheme (PIS) via NRE/...
National Stock Exchange of India. The leading stock exchange in India by trading volume, headquarter...
The benchmark stock market index of NSE, comprising 50 of the largest and most liquid Indian compani...
Offer For Sale. A mechanism for promoters of listed companies to sell shares to the public through t...
The total number of outstanding F&O contracts that have not been settled. Rising open interest with...
The price paid by the buyer to the seller for an options contract. Comprises intrinsic value (in-the...
Profit and Loss. The net gain or loss from your investments. UseMoney tracks both realized P&L (clos...
Price-to-Book Ratio. A stock's market price divided by its book value per share. A lower P/B may ind...
Price-to-Earnings Ratio. A stock's current price divided by its earnings per share. Used to assess w...
Permanent Account Number. A 10-digit alphanumeric identity issued by the Income Tax Department. Mand...
Public Provident Fund. A government-backed long-term savings scheme with tax benefits under Section...
Shares held in a demat account that are pledged as collateral to a lender or broker. Pledged shares...
The collection of all financial investments held by an individual or institution, including stocks,...
The founders or controlling shareholders of a company. High promoter holding (above 50%) can indicat...
A derivative contract that gives the buyer the right (but not obligation) to sell an underlying asse...
Reserve Bank of India. India's central bank that controls monetary policy, interest rates, and banki...
Return on Capital Employed. A profitability ratio that measures how efficiently a company generates...
Return on Equity. Net income divided by shareholders' equity, measuring how effectively a company us...
Relative Strength Index. A momentum indicator ranging from 0 to 100. RSI above 70 suggests overbough...
The date set by a company to determine which shareholders are eligible to receive dividends, bonuses...
A price level where selling pressure tends to prevent a stock from rising further. A technical analy...
An offer by a company to existing shareholders to purchase additional shares at a discounted price,...
The strategy of investing a fixed amount at regular intervals (via SIP), which automatically buys mo...
Securities and Exchange Board of India. The regulatory authority that oversees and regulates the sec...
Sovereign Gold Bond. Government securities denominated in grams of gold, issued by RBI. Offer an alt...
Systematic Investment Plan. A method of investing a fixed amount regularly (usually monthly) in a mu...
Securities Lending and Borrowing. A mechanism where an investor lends securities they own to a borro...
Short Term Capital Gains. Profits from selling equity shares held for 12 months or less. In India, S...
Securities Transaction Tax. A tax levied on every purchase and sale of securities listed on Indian s...
Systematic Withdrawal Plan. A facility to withdraw a fixed amount from a mutual fund at regular inte...
The movement of investment capital from one industry sector to another as investors anticipate the n...
The benchmark index of BSE (Bombay Stock Exchange), comprising 30 of the largest and most actively t...
Companies ranked 251st and below by market capitalization on NSE. These are smaller companies with h...
A corporate action where a company divides its existing shares into multiple shares (e.g., 1:5 split...
An order placed to sell a security when it reaches a specific price, designed to limit potential los...
A price level where buying pressure tends to prevent a stock from falling further. A technical analy...
India's stock settlement cycle where trades settle one business day after execution. Shares are cred...
A method of evaluating securities by analyzing price charts, volume, and statistical indicators. Foc...
The rate at which an option's value decreases as it approaches expiry. Options lose time value faste...
A dynamic stop loss that moves with the price. If a stock rises, the stop loss rises too, locking in...
Unit Linked Insurance Plan. An insurance-cum-investment product that offers both life cover and mark...
The profit or loss on open holdings calculated at the current market price. It becomes realized P&L...
The maximum price a stock can rise (upper) or fall (lower) in a single trading day. When hit, tradin...
Volume Weighted Average Price. The average price a stock traded at throughout the day, weighted by v...
A statistical measure of the dispersion of returns for a security. Higher volatility means the price...
The number of shares or contracts traded during a given period. High volume indicates strong interes...