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.
IPO
Related terms
Bombay Stock Exchange. India's oldest stock exchange, established in 1875, located in Mumbai. Its benchmark index is the Sensex.
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 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.
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.
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 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.