Stock Market Glossary
Be an Informed Investor & Understand the Key Terminologies & Concepts Used Commonly in Investing & Personal Finance with Our Comprehensive Glossary of Financial Terms
abandoned baby pattern In trading analysis, an abandoned baby pattern is a unique candlestick pattern. In this pattern, an upside gap doji star is shown.
Elliott Wave Theory, or ABC wave theory, is a term for three-wave counter trend price movement. Here, wave A is the first price wave that is against the trend of the entire.
A summarised version of a full prospectus that contains all material information required by SEBI, provided to investors at the time of applying for a public issue.
Accrued expenses are those expenses which are listed on the income statement but are unpaid. Accrued expenses are the liabilities that the company needs to resolve at some future date.
The accrued interest is the interest earned on a bond or loan that has not yet been paid to the lender by the borrower.
Accumulation Distribution Line is a volume-based indicator that shows the cumulative inflow or outflow of money for a security. As the name suggests, an Accumulation.
A volume-based momentum indicator that assesses whether a security is being accumulated (bought) or distributed (sold) by comparing closing prices to the trading range.
The Acid Test Ratio, also known as the Quick Ratio, measures a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
Trying to predict future prices of an item, based on a dynamic weighting of the itemʼs prices in the past, is referred to as an adaptive filter.
A method of calculating loan interest where the total interest for the entire loan period is computed upfront and added to the principal, then divided into equal instalments.
An add-on offering refers to the additional shares made available to the public by a publicly trading company. This is usually done to raise capital for already existing shares
A market breadth indicator calculated as the cumulative difference between the number of advancing and declining stocks, used to gauge overall market direction.
A financial guarantee issued by a bank on behalf of a seller, assuring the buyer that advance payments will be refunded if the seller fails to fulfil contractual obligations.
An Adverse Excursion refers to a trade going in a direction opposite to the one desired by the trader, after she/he has executed it. For example, a drop after buying, or a rise.
The buying and selling of securities outside of regular stock exchange trading hours, typically conducted through electronic communication networks (ECNs).
The use of computer programs and automated systems to execute trades based on pre-defined criteria such as price, volume, or timing, with minimal human intervention.
It can be defined as a buy or a sell order that needs to be executed completely or not at all. Partial execution of an order is not possible.
Figure The measure of an assetʼs performance, relative to a benchmark or market index is known as Alpha Figure.
A person starts with a first estimation (anchor) and then makes incremental adjustments in view of extra data.Annual Earnings Change
The change in earnings for a company, between the most recent fiscal year and the preceding one is called the annual earnings change.
The ongoing costs of running a mutual fund, expressed as a percentage of average net assets, including management fees, administrative costs, and other operational charges.
The AGM is a compulsory annual gathering of a companyʼs shareholders in order to report and present that yearʼs important events, discuss the companyʼs strategies.
The amount of profit made by the company from their net sales, expressed as a percentage is known as Annual Net Profit Margin. It is calculated over one fiscal year.
An annual report of a company is an exhaustive report of a company's activities that took place during the previous year.
The change in sales between the recent fiscal year and the preceding year, expressed as a percentage, is known as the Annual Sales Change metric.
It is the buying and selling of securities in different markets at the same time so as to make a profit by taking an advantage of differing prices of the same asset. Ask or Offer It is the act of putting up securities for sale (or offering) by a seller.
ask price Ask Price The lowest price at which the seller is willing to sell the security is known as ask price. Also commonly known as buying price.
The number of shares or units of a security that a seller is willing to sell at the current ask price, indicating the available supply at that price level.
An investment strategy that divides a portfolio among different asset categories such as equities, bonds, and cash, based on an investor's goals, risk tolerance, and time horizon.
A mutual fund that invests across multiple asset classes—typically equities, bonds, and money market instruments—to provide a diversified, balanced portfolio in a single fund.
A firm that pools money from investors and invests it in securities such as stocks, bonds, and other assets on their behalf, earning fees for professional fund management.
Resources with economic value owned or controlled by an individual or company, including cash, property, equipment, and investments, which are expected to provide future benefit.
at the money When the strike price of the option is identical to the price of the stock, the situation is termed as ‘at the money.ʼ.
at the open An ‘at the openʼ is a directive of selling or buying securities at the very beginning of the day when trading opens.
A market mechanism where buyers competitively bid for assets, securities, or goods, with the highest bidder typically winning the item at their offered price.
The maximum amount of share capital that a company is legally permitted to issue to shareholders, as stated in its memorandum of association.
A scheme that allows investors to automatically invest a fixed amount at regular intervals into a mutual fund or other investment, directly from their bank account.
An option in investment plans where dividends or capital gains are automatically used to purchase additional units of the same fund rather than being paid out in cash.
A statistical model used in financial forecasting where future values of a variable are predicted based on its own past values, commonly applied in time-series analysis.
The average number of shares or contracts traded in a security per day over a specified period, used to measure liquidity and investor interest.
A technical indicator developed by J. Welles Wilder that measures market volatility by calculating the average range between the high and low prices over a set number of periods.
An investment strategy where an investor purchases additional shares of a stock as its price falls, lowering the average cost per share of their total holding.