Stock market glossary

A yearly document from a company with financial statements, management discussion and risks.

वार्षिक रिपोर्ट

Application Supported by Blocked Amount: the IPO payment method in which the money stays in your bank account, blocked, and is debited only if you receive shares.

ASBA

How you split money among asset classes such as equity, debt, gold and cash, based on goals and risk.

एसेट एलोकेशन

An independent opinion on whether the financial statements give a true and fair view.

ऑडिटर की रिपोर्ट

A statement of assets, liabilities and equity at one point in time.

बैलेंस शीट

Bid is the highest price a buyer offers; ask is the lowest price a seller accepts.

बिड और आस्क

Free additional shares given to existing shareholders from company reserves. The total value stays the same.

बोनस इश्यू

Shareholders' equity divided by the number of shares: the accounting value per share.

बुक वैल्यू

Shareholders' equity divided by the number of shares outstanding.

प्रति शेयर बुक वैल्यू

Price moving clearly above resistance or below support, often on higher volume.

ब्रेकआउट

A registered intermediary that executes your buy and sell orders on an exchange.

ब्रोकर

The fee a broker charges for executing a trade.

ब्रोकरेज

A bull market is a period of rising prices; a bear market is a sustained fall, often 20% or more from a high.

बुल और बियर मार्केट

When a company buys back its own shares from the market or through a tender offer, reducing the share count.

बायबैक

A call gives the right to buy at the strike price; a put gives the right to sell at the strike price.

कॉल और पुट

A chart element showing open, high, low and close for a period, coloured by direction.

कैंडलस्टिक

Money spent on long-lived assets such as factories, machinery or technology.

पूँजीगत व्यय (कैपेक्स)

Cash generated by the core business: cash received from customers minus cash paid for running costs and taxes.

संचालन कैश फ़्लो (Operating cash flow)

A record of the actual cash coming in and going out, from operations, investing and financing.

कैश फ़्लो स्टेटमेंट

A maximum daily upper or lower price move allowed for a stock. Trading may pause when it is hit.

सर्किट लिमिट

Returns that earn their own returns over time, so growth accelerates.

कंपाउंडिंग (चक्रवृद्धि)

A monthly statement from the depositories (CDSL/NSDL) showing all shares and mutual fund units held in your name.

कंसोलिडेटेड अकाउंट स्टेटमेंट (CAS)

Possible obligations that depend on a future event, such as a lawsuit. Disclosed in the notes to accounts.

आकस्मिक देनदारियाँ

The legal record your broker sends after each trading day, listing every trade, price, brokerage, tax and charge.

कॉन्ट्रैक्ट नोट

The rules and practices by which a company is directed and controlled, including the board and shareholder rights.

कॉर्पोरेट गवर्नेंस

A fall of 10% or more from a recent high, within a longer uptrend.

करेक्शन

Current assets divided by current liabilities. It shows whether a company can pay its short-term obligations.

चालू अनुपात (Current ratio)

Illegal betting on share prices outside a recognised exchange. Investors have no protection or recourse.

डब्बा ट्रेडिंग

Total debt divided by shareholders' equity. Higher values mean more borrowing.

डेट-टू-इक्विटी

An account that holds your shares in electronic form.

डीमैट खाता

A valuation method that estimates future cash flows and discounts them to today's value.

डिस्काउंटेड कैश फ़्लो (DCF)

When price and an indicator move in opposite directions, such as a new price high with a lower indicator high. It can warn that momentum is fading.

डाइवर्जेंस

Spreading money across different investments to reduce the damage from any one of them.

विविधीकरण

A share of profit a company pays to its shareholders, usually per share.

डिविडेंड (लाभांश)

Annual dividend per share divided by share price, shown as a percentage.

डिविडेंड यील्ड

The fall from a peak to a later low in your account or in a price, shown as a percentage.

ड्रॉडाउन

Earnings before interest, tax, depreciation and amortisation. A measure of operating performance.

EBITDA

Equity Linked Savings Scheme: an equity mutual fund with a lock-in period and tax benefits under Indian tax law. Check current rules.

ELSS

Cash or very safe, liquid savings to cover 3 to 6 months of expenses. Keep it separate from investments.

इमरजेंसी फ़ंड

Net profit divided by the number of shares outstanding.

EPS (प्रति शेयर आय)

Ownership in a company through shares. Also used for the value left for shareholders after debts.

इक्विटी

Enterprise value (market cap plus debt minus cash) divided by EBITDA. A valuation measure that is neutral to debt levels.

EV/EBITDA

The first day a share trades without the right to an upcoming dividend or corporate action. The price usually adjusts on this day.

एक्स-डेट

Large, unusual or one-time gains or losses shown separately in results, such as a property sale or a write-down.

असाधारण मदें (Exceptional items)

The yearly fee a fund charges, as a percentage of assets.

एक्सपेंस रेशियो

The date on which a futures or option contract ends.

एक्सपायरी

Foreign Institutional Investors and Domestic Institutional Investors. Their buying and selling is watched as a market signal.

FII और DII

Operating cash flow minus capital expenditure. The cash left after keeping the business running and growing.

फ़्री कैश फ़्लो (FCF)

The part of a company's shares not held by promoters or locked in, and so available for normal trading.

फ़्री फ़्लोट

A contract to buy or sell an asset at a set price on a future date. Both sides have obligations.

फ्यूचर्स

The extra amount paid to buy a business above the value of its net assets. Recorded on the balance sheet.

गुडविल

Measures of option sensitivity. Delta measures price sensitivity; theta measures time decay.

ग्रीक्स (डेल्टा, थीटा)

An unofficial, unregulated price quoted for IPO shares before listing. It is not reliable and has no legal standing.

ग्रे मार्केट प्रीमियम (GMP)

The volatility the option price implies for the future. Higher IV makes options more expensive.

इम्प्लाइड वोलैटिलिटी (IV)

A measure that tracks a selected group of shares, such as NIFTY 50 or SENSEX.

इंडेक्स

A fund that copies an index such as NIFTY 50, usually with low costs.

इंडेक्स फंड

The general rise in prices over time, which reduces what your money can buy.

महँगाई (इन्फ़्लेशन)

Trades opened and closed within the same trading session. Positions must be squared off before the market closes.

इंट्राडे

Initial Public Offering: a company's first sale of shares to the public, after which it is listed.

IPO (प्रारंभिक सार्वजनिक निर्गम)

In the money (has intrinsic value), at the money (strike near price), out of the money (no intrinsic value).

ITM, ATM, OTM

Know Your Customer: identity and address verification required before you can invest.

KYC

Using borrowed money or margin to take a bigger position. It magnifies both gains and losses.

लीवरेज

An order to buy at or below, or sell at or above, a set price. It may not execute.

लिमिट ऑर्डर

How easily an asset can be bought or sold without moving its price much.

लिक्विडिटी

The fixed quantity in one derivatives contract. You trade in whole lots.

लॉट साइज़

Moving Average Convergence Divergence: a momentum indicator built from two moving averages and a signal line.

MACD

The money you must deposit with a broker to hold a leveraged position.

मार्जिन

The gap between estimated value and price. Buying with a margin protects you if your estimate is too optimistic.

सुरक्षा मार्जिन (Margin of safety)

Share price multiplied by the number of shares outstanding. Companies are grouped as large, mid or small cap.

मार्केट कैप

An order to buy or sell immediately at the best available price. The final price may differ from the displayed one.

मार्केट ऑर्डर

A halt in trading across the whole market when the NIFTY 50 or SENSEX moves 10%, 15% or 20% in a day.

मार्केट-वाइड सर्किट ब्रेकर

The average price over a set number of periods, used to smooth price and show trend.

मूविंग एवरेज

A short special trading session held on Diwali, considered auspicious for starting the new Hindu financial year.

मुहूर्त ट्रेडिंग

A pooled investment managed by a professional that holds a mix of securities.

म्यूचुअल फंड

The value of one unit of a mutual fund, calculated once a day after the market closes.

NAV (शुद्ध परिसंपत्ति मूल्य)

What is left from revenue after all costs, interest and taxes are paid.

शुद्ध मुनाफ़ा

An index of 50 large companies listed on the National Stock Exchange (NSE).

NIFTY 50

Naming the person who should receive your shares, funds or account balance after your death. You can name more than one person and split the share.

नॉमिनेशन

India's two main stock exchanges, where listed shares are bought and sold.

NSE और BSE

The number of outstanding derivative contracts that have not been closed or settled.

ओपन इंटरेस्ट

Operating profit divided by revenue. How much of each rupee of sales is left after running costs.

ऑपरेटिंग मार्जिन

A contract giving the buyer the right, but not the obligation, to buy (call) or sell (put) at a set price before expiry.

ऑप्शन

An instruction to buy or sell a security at a given price or at the best available price.

ऑर्डर

Share price divided by earnings per share. It shows how much investors pay for each rupee of earnings.

P/E अनुपात

P/E ratio divided by the expected earnings growth rate. A rough guide to whether a growth stock is fairly priced.

PEG अनुपात

Deciding how many shares to buy based on the maximum loss you accept and the distance to your stop.

पोज़िशन साइज़िंग

The 9:00–9:15 am session in which orders are collected and matched to set a fair opening price before normal trading starts.

प्री-ओपन सेशन

The price paid by the option buyer to the seller.

प्रीमियम

The people or group who founded or control a company. Promoter holding is the stake they own.

प्रमोटर

Promoters using their shares as security for a loan. If the price falls, lenders may sell the pledged shares.

प्रमोटर गिरवी (Pledge)

A fraud in which operators buy a small stock, hype it to push the price up, and sell to the buyers they attract.

पंप एंड डंप

The date on which shareholders must be on the register to receive a dividend or benefit.

रिकॉर्ड डेट

Dealings between a company and its promoters, directors or companies they control. They must be disclosed.

संबंधित-पक्ष लेनदेन

Profits kept in the business over time instead of being paid out as dividends.

रिज़र्व

A price level where selling has tended to appear and stop further rises.

रेज़िस्टेंस

Total income from selling goods or services before any costs are deducted.

राजस्व (बिक्री)

An offer to existing shareholders to buy new shares, usually at a discount, in proportion to their holding.

राइट्स इश्यू

The potential profit of a trade compared with its potential loss. A 1:2 ratio means ₹2 of reward for each ₹1 risked.

जोखिम-इनाम अनुपात

Net profit divided by shareholders' equity. It shows how well the company uses shareholder money.

ROE (इक्विटी पर रिटर्न)

Relative Strength Index: a 0 to 100 momentum measure. Above 70 is often overbought; below 30 oversold.

RSI

Buying a fixed amount regularly, so you buy more units when prices are low and fewer when high. It does not guarantee a profit.

रुपी कॉस्ट एवरेजिंग

SEBI's online complaints system (scores.sebi.gov.in) for complaints against listed companies, brokers and other market entities.

SCORES

The Securities and Exchange Board of India, the regulator that protects investors and oversees markets.

SEBI

An Investment Adviser or Research Analyst registered with SEBI. Only they may charge for personalised advice or stock recommendations.

SEBI-रजिस्टर्ड सलाहकार (RIA / RA)

An index of 30 large companies listed on the Bombay Stock Exchange (BSE).

SENSEX

The process of transferring shares and money after a trade. In India, equity trades settle one trading day after the trade (T+1).

सेटलमेंट (T+1)

A unit of ownership in a company. Holding shares makes you a part-owner.

शेयर (स्टॉक)

Selling shares you do not own, to buy them back later at a lower price. It carries unlimited loss potential if price rises.

शॉर्ट सेलिंग

Systematic Investment Plan: investing a fixed amount at regular intervals into a fund.

SIP

The difference between the expected price of a trade and the price it actually fills at.

स्लिपेज

SEBI's online dispute resolution platform (smartodr.in) for conciliation and arbitration with market entities when a complaint is not resolved.

SMART ODR

The gap between bid and ask. Narrow spreads usually mean a liquid stock.

स्प्रेड

Dividing existing shares into more shares. The price per share falls proportionally; the total value stays the same.

स्टॉक स्प्लिट

An order that becomes a market or limit order when price reaches a set level, to limit a loss. It is not guaranteed to fill at that level.

स्टॉप-लॉस ऑर्डर

The price at which an option can be exercised.

स्ट्राइक प्राइस

A tax charged by the government on securities transactions, varying by trade type.

STT (सिक्योरिटीज़ ट्रांज़ैक्शन टैक्स)

A price level where buying has tended to appear and stop further falls.

सपोर्ट

Holding trades for days to weeks to capture a price swing.

स्विंग ट्रेडिंग

The account used to place buy and sell orders through a broker.

ट्रेडिंग खाता

The general direction of price: up (higher highs and lows), down (lower highs and lows), or sideways.

ट्रेंड

How much and how quickly a price moves. Higher volatility means bigger swings in both directions.

अस्थिरता (वोलैटिलिटी)

The number of shares traded in a period. High volume means more participation.

वॉल्यूम

Current assets minus current liabilities. The money available to run daily operations.

वर्किंग कैपिटल