Finance Kickstarter - Key Terms and Definitions

Stock Market

BSE

The Bombay Stock Exchange (BSE), founded in 1875 under a...

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Indices

Indices are baskets of financial instruments that gauge their collective...

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High Beta Stocks

High Beta stocks are shares that exceed market returns but...

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Equity Market

The equity market is where shares are traded, capital is...

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India VIX

India VIX, or the Indian Volatility Index, measures market volatility...

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Face Value

Face value refers to the nominal value of a stock...

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Index Futures

Index futures are derivative contracts tied to an underlying index,...

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Index Arbitrage

Index arbitrage is a trading strategy that aims to generate...

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Circuit Breaker

A circuit breaker is a regulatory mechanism used by exchanges...

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Equities

The term equities can refer to two different concepts: 1....

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Book Value

For a company, the book value refers to its Net...

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Trading

Delivery Trading

Delivery trading involves buying/selling a security and settling it by...

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Butterfly Spread

A butterfly spread is an options trading strategy that merges...

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Fibonacci Retracement

A Fibonacci Retracement is a predictive technical indicator used to...

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Arbitrage

Arbitrage is a trading strategy that exploits small price differences...

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Bracket Order

A bracket order is an intraday trading tool that combines...

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Iron Condor

An Iron Condor options strategy allows traders to profit in...

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Margin Trading

Margin trading is a strategy where traders borrow funds from...

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Limit Order

A limit order is an instruction to buy or sell...

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Donchian Channels

A Donchian Channel is a technical indicator showing the range...

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Call Option

A call option is a derivative contract granting the right,...

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Backtesting

Backtesting involves testing trading strategies or models against historical data...

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Anaume Pattern

An Anaume Pattern is a technical chart pattern that occurs...

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Cash Market

In Stock exchanges like the NSE or BSE cash markets...

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Hedging

Hedging is a risk management strategy used to offset potential...

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Gravestone Doji

A Gravestone Doji is a candlestick pattern that indicates a...

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Averaging Down

Averaging down is an investment strategy where an investor buys...

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Hammer Candlestick Pattern

A Hammer Candlestick pattern occurs when a stock, commodity, or...

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Buy and Hold

Buy and hold is a long-term investment strategy where investors...

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Block Trade

A block trade is a large buy or sell order...

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Candlesticks

Candlestick charts are a popular tool in technical analysis used...

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Intraday Trading

Intraday trading involves buying and selling financial instruments, such as...

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Ichimoku Cloud

The Ichimoku Cloud is a technical analysis tool that helps...

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Investing

Dividend Yield

Dividend yield is a percentage ratio that measures the dividends...

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Dividend Per Share

Dividend per share (DPS) measures the dividend amount distributed per...

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Free Cash Flow

Free cash flow (FCF) in accounting and earnings reports represents...

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Income Stocks

Income stocks are shares of companies offering steady income, usually...

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Asset Allocation

Asset allocation is a strategy where an investor determines how...

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Growth Stocks

Growth stocks are shares in companies expected to outpace the...

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Capital Gains

A capital gain is the profit earned when an investor...

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EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization....

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Blue Chip Stocks

Blue chip stocks are shares of well-established, financially stable, and...

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Return on Equity (ROE)

Return on Equity (ROE) is a key profitability ratio that...

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Return on Capital Employed (ROCE)

Return on Capital Employed (ROCE) is a financial ratio used...

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Derivatives

Forward Price

The forward price is the agreed-upon value at which a...

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Butterfly Spread

A butterfly spread is an options trading strategy that merges...

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Interest Rate Futures

Interest rate futures are derivative contracts based on interest-bearing instruments,...

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Commodity Futures

A commodity futures contract is an agreement between two parties...

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Iron Condor

An Iron Condor options strategy allows traders to profit in...

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Equity Options

An equity option is a type of derivative contract that...

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Box Spread

A box spread is an options trading strategy combining a...

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Fixed Income

Interest Rate Risk

Interest rate risk is the potential drop in a fixed...

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Gold Futures

Gold futures are commodity derivatives tied to the value of...

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Dividend Stocks

Dividend stocks are shares of companies that distribute a portion...

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Interest Coverage Ratio

The Interest Coverage Ratio (ICR) measures a company's ability to...

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Gold ETF

A Gold ETF (Exchange-Traded Fund) is an investment fund that...

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Information Ratio

The Information Ratio (IR) is a measure that compares the...

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Convertible Bonds

A convertible bond is a hybrid security that functions initially...

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Government Bonds

Government bonds are debt instruments issued by central banks to...

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Fixed Income Securities

Fixed Income Securities are debt instruments issued by companies or...

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Floating Interest Rate

A floating interest rate is an interest rate that fluctuates...

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Debentures

A debenture is an unsecured debt instrument issued by companies...

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Market Economics

Income Statement

An income statement is a key financial document detailing a...

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Liquidity Ratio

The Liquidity Ratio is a financial metric used to assess...

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Balance Sheet

A balance sheet is a financial statement that provides a...

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Liquidity Trap

A Liquidity Trap is an economic scenario where individuals and...

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Cash Flow Statement

A cash flow statement tracks a business’s cash inflows and...

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Capture Ratio

The capture ratio helps investors evaluate how well an asset...

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Inflation

Inflation refers to the rise in the price of goods...

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Annual Report

An annual report is a comprehensive document that provides detailed...

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Return on Equity (ROE)

Return on Equity (ROE) is a key profitability ratio that...

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Regulation

Basis Of Allotment

The basis of allotment defines the criteria for distributing shares...

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Insider Trading

Insider trading involves buying or selling shares based on non-public,...

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Listing Date

The listing date is the day a company's shares become...

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Direct Public Offerings

A Direct Public Offering (DPO) enables a company to sell...

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Bureau Of Indian Standards

The Bureau of Indian Standards (BIS) ensures the safety and...

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Issue Price

The issue price is the price at which a company...

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IPO

An IPO (Initial Public Offering) is the process through which...

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Book Building

Book building is a method used to determine the issue...

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Risk Management

Anchoring and Adjustment

Anchoring is a cognitive bias where decisions hinge on pre-existing...

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Liquidity Trap

A Liquidity Trap is an economic scenario where individuals and...

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Hard Underwriting

Hard underwriting occurs when the underwriter agrees to purchase their...

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Cash Reserve Ratio

Cash Reserve Ratio (CRR) is the percentage of a bank's...

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Advance/Decline Line

The Advance/Decline Line is a popular market breadth indicator that...

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Autoregressive Model

An autoregressive (AR) model is used to predict future values...

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Miscellaneous

Identifiable Asset

An identifiable asset is a tangible or intangible asset that...

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Contingent Liabilities

A contingent liability is a potential obligation that may arise...

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Book Entry Securities

Book entry securities are financial instruments like stocks, bonds, ETFs,...

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Mutual Fund

Regular Fund

Expense Ratios Regular

Regular funds have higher expense ratios due to distributor commissions,...

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Returns Regular

Returns are slightly lower because of higher costs associated with...

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Control Regular

Less control over fund selection as choices are guided by...

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Investment Guidance Regular

Offers personalized guidance from advisors, aiding in fund selection and...

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Direct Fund

Expense Ratios Direct

Direct funds have lower expense ratios as there are no...

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Returns Direct

Typically, direct funds offer higher returns due to lower fees...

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Control Direct

More control, allowing investors to choose funds independently based on...

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Investment Guidance Direct

No advisor assistance; suitable for investors comfortable making decisions independently

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