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.
3-in-1 Account explained: integrated investor account.
52-Week High explained: stock trading metric.
52-Week Low explained: stock trading metric.
50-Day MA explained: stock trend analysis.
200-Day MA explained: stock trend analysis.
See all number/symbol terms.
Ask Price explained: definition, role in bid-ask spread.
Amortization explained: meaning, methods, and usage.
Arbitrage explained: profit from market inefficiencies.
Asset Allocation explained: strategy, risk management.
Annual Report explained: importance, contents, and usage.
Authorized Capital, After Market Order (AMO), Ask-Bid Spread
Balance Sheet explained: assets, liabilities, equity.
Bankruptcy explained: process, impact, resolution.
Basis Point explained: interest rates, yields, changes.
Bear Market explained: downturns, investor strategies.
Bid Price explained: role in market transactions.
Blue Chip Stock, Book Value, Bonus Issue
Call Option explained: rights, premium, strike, usage.
Capital Gain explained: taxation, long term vs short term.
Circuit Breaker explained: volatility control mechanism.
Collateral explained: securities pledged for loans.
Convertible Bonds explained: hybrid debt-equity tool.
Coupon Rate, Credit Rating, Custodian
Debentures explained: meaning, features, risks.
Dividend explained: payout, yield, taxation.
Depository explained: NSDL, CDSL, investor role.
DP explained: link between investors and depositories.
Demat Account explained: features, benefits.
Discount Broker, Derivative, Delivery Trading
Equity explained: ownership, rights, risks in markets.
EPS explained: profitability, valuation metric.
ETF explained: diversification, liquidity, cost.
Ex-Dividend Date explained: dividend eligibility.
Equity Share explained: features, benefits.
Exchange Rate, Earnings Yield, Enterprise Value (EV)
Futures explained: contracts, expiry, hedging.
Forward contracts explained: customized OTC deals.
Face Value explained: nominal value of securities.
Fair Value explained: intrinsic worth, valuation.
Fiscal Deficit explained: government budget gap.
Fundamental Analysis, Fixed Deposit, Foreign Direct Investment (FDI)
GDP explained: economic output and growth measure.
Gilt Securities explained: government bonds.
Growth Stock explained: high potential investments.
Gross Profit explained: profitability indicator.
Goodwill explained: intangible asset, valuation.
Government Bond, Gross Margin, Greenfield Investment
Hedging explained: strategy to manage risks in markets.
Holding Period explained: investment duration term.
Haircut explained: collateral value adjustment.
Hybrid Fund explained: diversification investment.
Hostile Takeover explained: acquisition strategy.
Hedger, High-Frequency Trading (HFT), Horizontal Merger
Illiquidity explained: risks in trading assets.
Income Statement explained: P&L, financial health.
Institutional Investor explained: FIIs, DIIs role.
Index Arbitrage explained: derivatives strategy.
Investment Banker explained: IPOs, fundraising role.
Insolvency, Indexation, Interim Dividend
Jobber explained: market maker and trading role.
Joint Account explained: shared ownership of account.
Joint Venture explained: collaboration, profit sharing.
Judicial Management explained: restructuring tool.
Junior Debt explained: subordinated financial claim.
Junk Bond, J-Curve Effect, Joint Liability
KYC explained: verification, compliance in finance.
KPI explained: business and financial metric.
Knock-In Option explained: barrier derivatives.
Knock-Out Option explained: structured products.
Knowledge Capital explained: intangible asset value.
Keynesian Economics, Keltner Channel, Key Rate Duration
Liquidity explained: trading ease, market depth.
Limit Order explained: control over trade price.
Leverage explained: amplify gains and losses.
Listing explained: NSE, BSE company shares trading.
Lock-in Period explained: IPO and mutual funds.
Long Position, Lending Rate, Loan Against Shares
Market Cap explained: company valuation measure.
Mutual Fund explained: pooled investment option.
Margin Trading explained: leverage and risks.
Market Order explained: immediate execution type.
Monetary Policy explained: RBI interest rate tool.
Money Market, Market Risk, Merger
NSE explained: India's largest stock exchange.
Nifty 50 explained: benchmark Indian stock index.
NAV explained: mutual fund unit valuation.
Net Profit explained: bottom-line company profit.
Net Worth explained: assets minus liabilities.
Net Income, Net Present Value (NPV), Nominee
Option explained: call, put, derivatives trading.
Open Interest explained: futures and options indicator.
OTC explained: trading outside exchanges.
Offer Price explained: IPO issue price meaning.
Outstanding Shares explained: equity measure.
Overdraft, Ownership, Operating Profit
P/E Ratio explained: valuation and profitability metric.
Portfolio explained: asset mix, diversification, strategy.
Public Issue explained: IPO process and investor role.
Promoter explained: role in company ownership.
Private Placement explained: funding and regulation.
Preference Shares, Prospectus, Payout Ratio
QIB explained: institutional investors in IPOs.
Quarterly Earnings explained: quarterly results.
Quick Ratio explained: liquidity financial ratio.
Quantitative Easing explained: central bank policy.
Qualified Opinion explained: auditor's review.
Quarter-on-Quarter (QoQ), Quota, Quotation
Recurring Deposit explained: savings and returns.
Repo Rate explained: RBI's monetary policy tool.
Reverse Repo Rate explained: liquidity management.
Risk Management explained: strategies to reduce risks.
Rating Agency explained: credit evaluation role.
Reserve Bank of India (RBI), Revenue, Return on Assets (ROA)
Share explained: ownership, rights, and risks in markets.
Stock explained: shares, ownership, and equity basics.
Stock Exchange explained: NSE, BSE, and trading.
Securities explained: types and usage.
SEBI explained: regulator of Indian markets.
Short Selling, Speculation, SIP (Systematic Investment Plan)
Trading Account explained: role in stock market.
Technical Analysis explained: tools, patterns, signals.
Turnover explained: trading volume and liquidity.
Treasury Bills explained: government debt security.
Takeover explained: corporate acquisition strategy.
Tax Deducted at Source (TDS), Tax Haven, Terminal Value
Underwriting explained: IPOs, risks, guarantees.
Underlying Asset explained: basis for derivatives.
Unsecured Loan explained: lending without collateral.
Unit Trust explained: pooled investment vehicle.
Upside Potential explained: growth expectations.
Unsystematic Risk, Utility, Unlisted Company
Valuation explained: methods, importance, usage.
Volatility explained: market fluctuations, risk.
Volume explained: liquidity and market activity.
Venture Capital explained: funding, growth.
Voting Rights explained: shareholder participation.
Value Stock, Variable Cost, Vested Interest
WACC explained: cost of capital, valuation metric.
Warrant explained: financial instrument with rights.
Wash Sale explained: trading and tax implications.
Working Capital explained: liquidity measure.
Write-Off explained: accounting, tax deduction.
Withholding Tax, Windfall Gain, Withdrawal
Yield explained: return on investment percentage.
Yield Curve explained: bond market indicator.
YTM explained: bond return till maturity.
YoY explained: yearly financial performance.
Yield Spread explained: bond market measure.
Yield on Cost, Yield Maintenance, Yield Pickup
Zero Coupon Bond explained: discount, no interest.
Z-Score explained: statistical risk indicator.
Z-Tranche explained: collateralized debt structure.
Zero-Beta Portfolio explained: risk-free strategy.
Zero Balance Account explained: banking facility.
Zombie Company, Zero Deficit, Zero Liability Policy
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