The stock market can feel overwhelming when you're just starting out. With unfamiliar terms like P/E Ratio, Circuit Breaker, or Derivatives being tossed around, it's easy to get lost. That’s where this comprehensive Stock Market Glossary comes in. Whether you’re a beginner investor, a student of finance, or an experienced trader, this guide will help you understand the most common and important stock market terms from # to Z.
This glossary is organized alphabetically and includes definitions tailored for Indian and global market relevance. Use it as a reference whenever you encounter an unfamiliar term in trading, investing, news analysis, or financial reports.
A 3-in-1 account combines trading, demat, and bank accounts. Learn the meaning of a 3-in-1 account and its benefits for investors.
The 52-week high is the highest price a stock reaches in one year. Learn the meaning of 52 week high and why investors track it.
The 52-week low is the lowest price of a stock in a year. Learn its meaning and why investors track it.
The 50-day moving average is a short-term technical indicator. Learn its meaning and how traders use the 50 DMA.
The 200 day moving average is a key technical indicator used to identify long-term stock trends. Learn its meaning, calculation, and practical use.
See all number/symbol terms.
Ask price is the lowest price a seller is willing to accept. Learn the meaning of ask price in stock market trading.
Amortization is the gradual repayment of a loan or expense over time. Learn the meaning of amortization with simple examples.
Arbitrage involves buying and selling assets to profit from price differences. Learn the meaning of arbitrage in financial markets.
Asset allocation is the strategy of dividing investments across asset classes. Learn the meaning of asset allocation and its importance.
An annual report provides a company’s financial and operational performance. Learn the meaning of annual report and why it matters.
Authorized Capital, After Market Order (AMO), Ask-Bid Spread
A balance sheet shows a company’s assets, liabilities, and equity. Learn the meaning of balance sheet and how to read it.
Bankruptcy is a legal process for individuals or firms unable to repay debts. Learn the meaning of bankruptcy and its implications.
A basis point is a unit equal to one-hundredth of a percent. Learn the meaning of basis points in finance and investing.
A bear market is marked by falling prices and negative sentiment. Learn the meaning of bear market and how it affects investors.
Bid price is the highest price a buyer is willing to pay. Learn the meaning of bid price in stock market trading.
Blue Chip Stock, Book Value, Bonus Issue
A call option gives the right to buy an asset at a fixed price. Learn the meaning of call options and how they work.
Capital gain is the profit earned from selling an asset. Learn the meaning of capital gains and their different types.
A circuit breaker temporarily halts trading to control market volatility. Learn the meaning of circuit breaker and how it works.
Collateral is an asset pledged to secure a loan or obligation. Learn the meaning of collateral and why it is required.
A convertible bond can be converted into equity shares. Learn the meaning of convertible bonds and how they work.
Coupon Rate, Credit Rating, Custodian
A debenture is a long-term debt instrument issued by companies. Learn the meaning of debentures and their types.
A dividend is a portion of profit distributed to shareholders. Learn the meaning of dividend and how it is paid.
A depository holds securities in electronic form for investors. Learn the meaning of depository and its key functions.
A depository participant acts as an intermediary between investors and depositories. Learn the meaning of DP and its role in markets.
A demat account holds securities in electronic form. Learn the meaning of demat account and why it is required.
Discount Broker, Derivative, Delivery Trading
Equity represents ownership in a company or asset. Learn the meaning of equity in investing and finance.
Earnings per share shows a company’s profit per share. Learn the meaning of EPS and why investors track it.
An exchange traded fund tracks an index and trades like a stock. Learn the meaning of ETFs and how they work.
Ex-dividend date determines dividend eligibility for shareholders. Learn the meaning of ex-dividend date in stocks.
An equity share represents ownership in a company. Learn the meaning of equity shares and their key features.
Exchange Rate, Earnings Yield, Enterprise Value (EV)
Futures are derivative contracts to buy or sell assets at a future date. Learn the meaning of futures and how they work.
A forward contract is an agreement to buy or sell an asset later. Learn the meaning of forward contracts.
Face value is the nominal value of a share or bond. Learn the meaning of face value and its relevance.
Fair value is the estimated true worth of an asset or liability. Learn the meaning of fair value in finance.
Fiscal deficit occurs when government spending exceeds revenue. Learn the meaning of fiscal deficit and its economic impact.
Fundamental Analysis, Fixed Deposit, Foreign Direct Investment (FDI)
Gross domestic product measures a country’s economic output. Learn the meaning of GDP and why it matters.
Gilt edged securities are low-risk government-backed investments. Learn their meaning and role in the gilt-edged market.
A growth stock belongs to a company expected to grow faster than peers. Learn the meaning of growth stocks and their features.
Gross profit is revenue minus the cost of goods sold. Learn the meaning of gross profit and its importance.
Goodwill is an intangible asset arising during acquisitions. Learn the meaning of goodwill and how it is calculated.
Government Bond, Gross Margin, Greenfield Investment
Hedging is a strategy used to reduce investment risk. Learn the meaning of hedging and how it works in finance.
Holding period refers to the time an investment is owned. Learn the meaning of holding period in investing.
A haircut refers to the reduction applied to asset value for risk. Learn the meaning of haircut in finance and lending.
A hybrid fund invests in both equity and debt instruments. Learn the meaning of hybrid funds and their benefits.
A hostile takeover occurs without the target company’s consent. Learn the meaning of hostile takeover and how it happens.
Hedger, High-Frequency Trading (HFT), Horizontal Merger
Illiquidity refers to difficulty in selling assets quickly. Learn the meaning of illiquidity and its impact on investments.
An income statement shows a company’s revenues and expenses. Learn the meaning of income statement and how to read it.
Institutional investors invest large sums on behalf of others. Learn the meaning of institutional investors in markets.
Index arbitrage exploits price differences between cash and futures markets. Learn the meaning of index arbitrage.
An investment banker helps companies raise capital and manage deals. Learn the meaning of investment bankers and their role.
Insolvency, Indexation, Interim Dividend
A jobber is a market intermediary who trades securities for profit. Learn the meaning of jobber in stock markets.
A joint account is a bank or demat account held by two or more individuals. Learn the meaning of joint account and how it works.
A joint venture is a business arrangement where parties share resources and risks. Learn the meaning, definition, and structure of a JV.
Judicial management is a legal process to restructure financially distressed companies. Learn the meaning of judicial management.
Junior debt ranks below senior debt in repayment priority. Learn the meaning of junior debt and its risk profile.
Junk Bond, J-Curve Effect, Joint Liability
Know Your Customer is a verification process for financial transactions. Learn the meaning of KYC and why it is required.
Key performance indicators measure business and financial performance. Learn the meaning of KPIs and why they matter.
A knock-in option becomes active only when a price level is reached. Learn the meaning of knock-in options in derivatives.
A knock-out option becomes invalid once a price level is hit. Learn the meaning of knock-out options and how they work.
Knowledge capital refers to the value of skills and expertise in an organization. Learn the meaning of knowledge capital.
Keynesian Economics, Keltner Channel, Key Rate Duration
Liquidity refers to how easily an asset can be converted into cash. Learn the meaning of liquidity in finance.
A limit order executes a trade at a specified price or better. Learn the meaning of limit orders in stock trading.
Leverage uses borrowed funds to increase investment exposure. Learn the meaning of leverage and its risks and benefits.
Listing is the process of admitting securities for trading on an exchange. Learn the meaning of listing in stock markets.
Lock-in period is the time during which investments cannot be sold. Learn the meaning of lock-in period and where it applies.
Long Position, Lending Rate, Loan Against Shares
Market capitalization shows the total value of a company’s shares. Learn the meaning of market cap and its importance.
A mutual fund pools money from investors to invest in securities. Learn the meaning of mutual funds and their types.
Margin trading allows investors to trade using borrowed funds. Learn the meaning of margin trading and its risks.
A market order buys or sells securities at the best available price. Learn the meaning of market order in trading.
Monetary policy is the central bank’s approach to control money supply. Learn the meaning of monetary policy and its tools.
Money Market, Market Risk, Merger
The National Stock Exchange of India (NSE) is India’s leading electronic stock exchange. Learn its meaning, features, and role in capital markets.
Nifty 50 is India’s benchmark stock market index. Learn the meaning of Nifty 50 and what it represents.
Net asset value shows the per-unit value of a mutual fund. Learn the meaning of NAV and how it is calculated.
Net profit is the final earnings after all costs and taxes. Learn the meaning of net profit in business.
Net worth represents assets minus liabilities. Learn the meaning of net worth for individuals and companies.
Net Income, Net Present Value (NPV), Nominee
An option is a derivative contract giving the right, not obligation, to trade an asset. Learn the meaning of options.
Open interest refers to the total number of open derivative contracts in the market. Learn its meaning in the stock market and option chain analysis.
Over-the-counter markets facilitate trading outside exchanges. Learn the meaning of OTC and how OTC trading works.
Offer price is the price at which securities are offered to investors. Learn the meaning of offer price in capital markets.
Outstanding shares are the total shares currently held by investors. Learn the meaning of outstanding shares and why they matter.
Overdraft, Ownership, Operating Profit
Price to earnings ratio measures a stock’s valuation relative to earnings. Learn the meaning of P/E ratio in investing.
A portfolio is a collection of investments held by an individual or institution. Learn the meaning of portfolio in investing.
A public issue is the sale of securities to the public by a company. Learn the meaning of public issue in capital markets.
A promoter is an individual or entity that establishes a company. Learn the meaning of promoter and their role.
Private placement is the sale of securities to select investors. Learn the meaning of private placement in capital markets.
Preference Shares, Prospectus, Payout Ratio
A qualified institutional buyer is an institutional investor eligible for special offerings. Learn the meaning of QIB in markets.
Quarterly earnings report a company’s performance every three months. Learn the meaning of quarterly earnings.
Quick ratio measures a company’s short-term liquidity position. Learn the meaning of quick ratio and how it is calculated.
Quantitative easing is a monetary policy used to increase liquidity. Learn the meaning of quantitative easing and its impact.
A qualified opinion is issued by auditors when financial statements have limitations. Learn the meaning of qualified opinion.
Quarter-on-Quarter (QoQ), Quota, Quotation
A recurring deposit allows investors to save a fixed amount monthly. Learn the meaning of RD and how it works.
Repo rate is the rate at which the central bank lends to commercial banks. Learn the meaning of repo rate and its impact.
Reverse repo rate is the rate at which banks park funds with the central bank. Learn the meaning of reverse repo rate.
Risk management involves identifying and reducing financial risks. Learn the meaning of risk management in investing.
A rating agency assesses the creditworthiness of issuers and securities. Learn the meaning of rating agencies and their role.
Reserve Bank of India (RBI), Revenue, Return on Assets (ROA)
A share represents ownership in a company. Learn the meaning of shares and how they work in the stock market.
Stock represents ownership in a company and a claim on its assets. Learn the meaning of stocks in investing.
A stock exchange is a marketplace for buying and selling securities. Learn the meaning of stock exchange and its role.
Securities are tradable financial instruments like shares and bonds. Learn the meaning of securities in financial markets.
SEBI is the regulator of the Indian securities market. Learn the meaning of SEBI and its role in investor protection.
Short Selling, Speculation, SIP (Systematic Investment Plan)
A trading account is used to buy and sell securities in the stock market. Learn the meaning of trading account and its uses.
Technical analysis studies price charts and indicators to predict market trends. Learn the meaning of technical analysis in trading.
Turnover refers to the total value of trades or business activity. Learn the meaning of turnover in stock markets.
A treasury bill is a short-term government security. Learn the meaning of T-bills and how they work.
A takeover occurs when one company acquires control of another. Learn the meaning of takeover in corporate finance.
Tax Deducted at Source (TDS), Tax Haven, Terminal Value
Underwriting is the process of evaluating and assuming financial risk. Learn the meaning of underwriting in finance.
An underlying asset is the financial instrument on which derivatives are based. Learn its meaning with examples.
An unsecured loan is granted without collateral. Learn the meaning of unsecured loans and their features.
A unit trust pools investor funds to invest in securities. Learn the meaning of unit trust and how it works.
Upside potential indicates the possible increase in an asset’s value. Learn the meaning of upside potential in investing.
Unsystematic Risk, Utility, Unlisted Company
Valuation determines the worth of a company or asset. Learn the meaning of valuation in finance and investing.
Volatility measures the degree of price fluctuations in markets. Learn the meaning of volatility in trading.
Volume refers to the number of shares or contracts traded. Learn the meaning of trading volume and why it matters.
Venture capital funds invest in early-stage, high-growth companies. Learn the meaning of venture capital and how it works.
Voting rights allow shareholders to vote on company matters. Learn the meaning of voting rights in companies.
Value Stock, Variable Cost, Vested Interest
WACC represents a firm’s average cost of capital. Learn the meaning of WACC and how it is calculated.
A warrant gives the right to buy shares at a fixed price in future. Learn the meaning of warrants in finance.
A wash sale involves selling and repurchasing a security to claim losses. Learn the meaning of wash sales and related rules.
Working capital measures a company’s short-term financial health. Learn the meaning of working capital and how it is calculated.
A write-off is the reduction or elimination of an asset’s book value. Learn the meaning of write-offs in accounting and finance.
Withholding Tax, Windfall Gain, Withdrawal
XBRL is a standard for digital financial reporting. Learn the meaning of XBRL and why it is used in compliance.
XIRR measures returns on investments with irregular cash flows. Learn the meaning of XIRR and how it is used.
Yield refers to income earned from an investment. Learn the meaning of yield in finance and investing.
A yield curve shows interest rates across different maturities. Learn the meaning of yield curve and what it indicates.
Yield to maturity is the total return on a bond if held till maturity. Learn the meaning of YTM and how it is calculated.
Year over year compares performance over the same period annually. Learn the meaning of YoY and its importance.
Yield Spread explained: bond market measure.
Yield on Cost, Yield Maintenance, Yield Pickup
A zero coupon bond pays no periodic interest and is issued at a discount. Learn the meaning of zero coupon bonds.
Z-score measures a company’s financial stability and risk of bankruptcy. Learn the meaning of Z-score in finance.
A Z-tranche is a type of bond tranche with deferred interest payments. Learn the meaning of Z-tranche.
A zero beta portfolio has no correlation with overall market movements. Learn what zero beta indicates and why such portfolios matter to investors.
A zero balance account requires no minimum balance. Learn the meaning of zero balance account and its benefits.
Zombie Company, Zero Deficit, Zero Liability Policy
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