Learn · Glossary
Stock market glossary.
Plain-English definitions of 503 investing and trading terms — tap any to see the meaning, an example and related terms.
Accounts
AadhaarA 12-digit unique identity number issued by UIDAI, used for …BSDA (Basic Services Demat Account)A no-frills demat account for small investors, with low or z…CDSLCentral Depository Services Limited — India’s second deposit…CKYCA central KYC registry that stores your verified identity on…Contract NoteA legal record of the trades executed in a day, with prices,…Demat AccountA demat (dematerialised) account holds your shares and secur…DepositoryA depository is an institution that holds investors’ securit…Depository Participant (DP)A depository participant is an agent of a depository (NSDL/C…e-DIS / DDPIThe electronic authorisation (e-DIS, or a one-time DDPI) tha…HUF AccountA demat and trading account in the name of a Hindu Undivided…Joint Demat AccountA demat account held by two or three holders together, with …KRA (KYC Registration Agency)A SEBI-registered agency that stores your verified KYC so it…KYCKnow Your Customer is the identity-verification process (PAN…LRS (Liberalised Remittance Scheme)An RBI scheme letting resident Indians remit up to USD 250,0…NomineeThe person you designate to receive the securities in your d…NRE / NRO AccountBank accounts for Non-Resident Indians — NRE (repatriable, f…NSDLThe National Securities Depository Limited — one of India’s …PANA Permanent Account Number is a 10-character alphanumeric ID…PIS (Portfolio Investment Scheme)An RBI scheme that lets NRIs buy and sell Indian shares on t…POA / DDPIAuthorisations that let your broker debit shares from your d…Quarterly Settlement (Running Account)A SEBI rule requiring brokers to transfer your unused funds …Re-KYCPeriodically re-confirming or updating your KYC details with…StockbrokerA SEBI-registered intermediary that lets you buy and sell se…Trading AccountA trading account is used to place buy and sell orders on th…UPI MandateAn authorisation that lets a specific amount be blocked or a…
Market structure
ASM / GSM (Surveillance)Exchange surveillance frameworks that place extra curbs (hig…Block & Bulk DealsLarge trades reported to the exchange — block deals happen i…BSEThe Bombay Stock Exchange — Asia’s oldest stock exchange, ho…Circuit BreakerAn exchange-set limit that halts or restricts trading in a s…Clearing CorporationThe entity that settles trades and guarantees them by steppi…Delivery PercentageThe share of a day’s traded volume that was taken as deliver…Freeze QuantityThe maximum order size the exchange accepts in one go for a …Insider TradingTrading on unpublished, price-sensitive information — illega…LTP (Last Traded Price)The price at which a security last changed hands — the “curr…NBFCA Non-Banking Financial Company lends and invests like a ban…NovationThe process where the clearing corporation becomes the buyer…NSEThe National Stock Exchange of India — the country’s largest…Pay-in & Pay-outIn settlement, pay-in is when securities/funds are collected…Pre-Open SessionA 15-minute window before the market opens (9:00–9:15) where…Primary MarketThe market where securities are issued for the first time — …RBIThe Reserve Bank of India — the country’s central bank, whic…RIA (Registered Investment Adviser)A SEBI-registered, fee-only adviser who gives investment adv…SEBIThe Securities and Exchange Board of India — the regulator t…Secondary MarketThe market where already-issued securities are traded betwee…Settlement AuctionWhen a seller fails to deliver shares, the exchange buys the…Settlement Cycle (T+1)The time taken to settle a trade — transfer of shares and mo…Spot PriceThe current market price for immediate delivery of an asset …Stock ExchangeA regulated marketplace where buyers and sellers trade share…Tick SizeThe minimum price increment a security can move — e.g. 5 pai…Trade-to-Trade (T2T)A surveillance segment where a stock must be settled by deli…
Indices
Bank NiftyAn NSE index of the most liquid and large-capitalised Indian…Dow JonesThe Dow Jones Industrial Average — a price-weighted index of…Market BreadthA measure of how many stocks are rising versus falling, used…NasdaqA US exchange and its tech-heavy indices (Nasdaq 100, Compos…Nifty 50The NSE’s flagship index of 50 large, liquid Indian companie…S&P 500A benchmark index of 500 large US companies — the most-follo…SensexThe BSE’s benchmark index of 30 large, established companies…Stock Market IndexA statistical measure of a group of stocks, used to track ho…
Stocks
ADR / GDRDepositary receipts that let a company’s shares trade on a f…AGM / EGMThe Annual General Meeting (and Extraordinary GM) where a co…Blue-Chip StockShares of large, well-established, financially sound compani…Bonus SharesFree additional shares issued to existing shareholders from …Book Closure / Record DateThe date a company fixes to decide who is eligible for a div…Cyclical vs Defensive StocksCyclical stocks (autos, metals) rise and fall with the econo…DelistingThe removal of a company’s shares from the stock exchange, a…DemergerWhen a company splits off a business into a separate listed …Differential Voting Rights (DVR)Shares that carry different (usually fewer) voting rights th…DividendA portion of a company’s profits distributed to shareholders…Dividend YieldA stock’s annual dividend expressed as a percentage of its s…EquityOwnership capital in a company, represented by its shares. E…ESOP (Employee Stock Option Plan)A scheme that gives employees the right to buy company share…Ex-Dividend DateThe cut-off date to be eligible for a declared dividend. You…Face ValueThe nominal value of a share set by the company, used for ac…Fractional SharesOwning a portion of a single share, letting you invest a fix…Large-CapThe largest companies by market capitalisation — in India, t…Market CapitalisationA company’s total market value — its share price multiplied …Merger & Acquisition (M&A)A merger combines two companies into one; an acquisition is …Mid-CapMedium-sized companies — in India, ranked 101st to 250th by …Open OfferA mandatory offer by an acquirer to buy shares from public s…Penny StockA low-priced, often small-company share that tends to be hig…Preferential AllotmentIssuing shares (or warrants) to a select group of investors …QIP (Qualified Institutional Placement)A way for a listed company to raise capital quickly by issui…Rights IssueAn offer letting existing shareholders buy additional shares…ShareA unit of ownership in a company. Owning a share makes you a…Share BuybackWhen a company repurchases its own shares from the market or…Small-CapSmaller companies ranked 251st and below by market cap. High…Stock SplitA corporate action that divides each share into multiple sha…Sweat EquityShares a company issues to employees or founders for their e…WarrantA security giving the right to buy a company’s shares at a s…
IPO
Anchor InvestorA large institutional investor allotted IPO shares a day bef…ASBAApplication Supported by Blocked Amount — the mechanism wher…Book BuildingThe IPO price-discovery process where investors bid within a…Cut-off PriceIn a book-built IPO, bidding at the cut-off means you accept…FPOA Follow-on Public Offer is when an already-listed company i…IPOAn Initial Public Offering is when a private company sells s…IPO AllotmentThe process of allocating IPO shares to applicants. When dem…Lot SizeThe minimum number of shares you can apply for in an IPO (or…OversubscriptionWhen an IPO receives more applications than the shares on of…QIB / NII / Retail (IPO Categories)The buckets an IPO is split into — Qualified Institutional B…RHP (Red Herring Prospectus)The offer document a company files before its IPO, detailing…SME IPOAn IPO by a small or medium enterprise listing on the SME pl…
Trading
After Market Order (AMO)An order placed outside trading hours that is queued and sen…Algorithmic TradingUsing computer programs to place orders automatically based …ArbitrageProfiting from a price difference for the same asset in two …Basket OrderPlacing several orders together as one basket — useful for e…Bid-Ask SpreadThe gap between the highest price buyers will pay (bid) and …Bracket OrderAn intraday order that bundles an entry, a target and a stop…BTST (Buy Today, Sell Tomorrow)Selling shares the day after buying them, before they are cr…Collateral MarginMargin you get by pledging securities (or cash equivalents) …Cover OrderAn intraday order placed with a compulsory stop-loss, giving…Delivery TradingBuying shares and holding them in your demat account beyond …Disclosed QuantityAn order feature that shows only part of a large order to th…GTT (Good Till Triggered)A long-validity order that stays active until its trigger pr…HaircutThe percentage discount applied to the value of pledged coll…HFT (High-Frequency Trading)A form of algo trading that uses ultra-fast systems (often c…Impact CostThe cost of moving the price against yourself when placing a…Intraday TradingBuying and selling the same security within one trading sess…IOC Order (Immediate or Cancel)An order that executes immediately — fully or partly — and c…Limit OrderAn order to buy or sell only at a specified price or better,…LiquidityHow easily an asset can be bought or sold without significan…Long UnwindingWhen traders holding long positions sell to book profits or …Margin PledgePledging shares in your demat as collateral to get trading m…Market DepthThe buy and sell orders queued at different prices, showing …Market OrderAn order to buy or sell immediately at the best available cu…MTF (Margin Trading Facility)A facility to buy delivery shares by paying only part of the…OCO Order (One Cancels Other)A pair of orders — typically a target and a stop-loss — wher…OrderAn instruction to buy or sell a security on the exchange, sp…Peak MarginA SEBI rule requiring brokers to collect the full required m…Positional TradingHolding trades for weeks to months based on a longer-term vi…ScalpingA very short-term trading style that takes many small profit…Short CoveringWhen traders who sold short buy back to close positions, whi…Short SellingSelling a security you don’t own (usually intraday or via de…SlippageThe difference between the price you expected and the price …Square OffClosing an open position by taking the opposite trade — sell…STBT (Sell Today, Buy Tomorrow)Selling shares you don’t hold and buying them back the next …Stop-LossAn order that triggers a buy or sell when a set price is rea…Swing TradingHolding positions for a few days to weeks to capture a “swin…Trading VolumeThe number of shares or contracts traded in a security over …Trailing Stop-LossA stop-loss that moves up as the price rises (and stays put …Upper & Lower CircuitThe maximum up or down move an exchange allows in a stock in…
Derivatives
At the Money (ATM)An option whose strike price is closest to the current price…Butterfly SpreadA limited-risk options strategy using three strikes that pro…Calendar SpreadAn options strategy using the same strike but different expi…Call OptionAn option giving the holder the right to buy the underlying …Cash-and-Carry ArbitrageBuying the underlying in the cash market and selling its fut…CollarAn options hedge on a stock you own — buy a protective put a…Covered CallAn options strategy of selling a call option against shares …DeltaThe option greek showing how much an option’s price changes …Delta HedgingOffsetting the directional risk of an options position by tr…ExpiryThe date a derivative contract ceases to exist and is settle…F&O (Futures & Options)Derivative contracts whose value derives from an underlying …Futures ContractAn agreement to buy or sell an underlying asset at a set pri…HedgingTaking an offsetting position to reduce the risk of adverse …Implied Volatility (IV)The market’s expectation of future volatility, derived from …In the Money (ITM)An option that has intrinsic value — a call whose strike is …Intrinsic ValueThe in-the-money portion of an option’s price — what you’d g…Iron CondorA non-directional options strategy selling an out-of-the-mon…LeverageUsing borrowed funds or margin to control a larger position …MarginThe funds or collateral required to take a leveraged positio…Mark to Market (MTM)The daily revaluation of open positions to the current price…Max PainThe strike price at which the largest number of options woul…Notional ValueThe total value a derivative contract controls — lot size ti…Open InterestThe total number of outstanding (not yet closed) derivative …Option ChainA table of all available call and put contracts for an under…Option GreeksMeasures of an option’s sensitivity to factors: delta (price…Option PremiumThe price paid by the buyer to the seller for an option cont…Option SpreadAn options strategy combining buying and selling options of …Options ContractA contract giving the right, not the obligation, to buy (cal…Out of the Money (OTM)An option with no intrinsic value — a call above the price, …Physical SettlementHow stock F&O is settled at expiry — in-the-money stock deri…Protective PutBuying a put option on shares you own, as insurance against …Put OptionAn option giving the holder the right to sell the underlying…Put-Call Ratio (PCR)The ratio of open put options to call options — a sentiment …RolloverClosing a derivatives position in the expiring contract and …SPAN & Exposure MarginThe two components of the margin required for F&O: SPAN cove…StraddleBuying (or selling) both a call and a put at the same strike…StrangleBuying (or selling) an out-of-the-money call and put, a chea…Strike PriceThe fixed price at which an option can be exercised — the re…Synthetic PositionRecreating the payoff of one instrument using others — e.g. …Theta (Time Decay)The option greek measuring how much premium an option loses …Time ValueThe part of an option’s premium above its intrinsic value, r…Underlying AssetThe stock, index or commodity on which a derivative contract…VegaThe option greek measuring sensitivity to changes in implied…
Mutual funds
AlphaThe return a fund generates above (or below) its benchmark, …AMC (Asset Management Company)The company that manages a mutual fund’s portfolio and opera…ARN (Mutual Fund Distributor)The AMFI Registration Number identifying a mutual-fund distr…AUM (Assets Under Management)The total market value of the investments a fund or AMC mana…BenchmarkThe index a fund measures itself against (e.g. the Nifty 50)…Close-Ended FundA fund with a fixed number of units and a set maturity, boug…Consolidated Account Statement (CAS)A single statement showing all your mutual-fund and demat ho…Cut-off TimeThe daily deadline (e.g. 3 PM for most funds) that decides w…Direct PlanA mutual fund plan bought directly from the AMC with no dist…ELSSEquity Linked Savings Scheme — a tax-saving equity mutual fu…Entry & Exit LoadFees charged when you enter or exit a fund. Entry loads are …ETF (Exchange-Traded Fund)A fund that tracks an index, commodity or theme and trades o…Exit LoadA fee charged when you redeem mutual fund units before a spe…Expense RatioThe annual fee a mutual fund charges as a percentage of asse…FMP (Fixed Maturity Plan)A close-ended debt fund that holds bonds maturing around a f…Folio NumberA unique account number that identifies your holdings with a…Fund ManagerThe professional who decides what a mutual fund buys and sel…IDCW (Dividend) vs Growth OptionA fund’s Growth option reinvests gains (units’ NAV grows); t…Index FundA passively managed mutual fund that replicates a market ind…International FundA mutual fund that invests in companies listed outside India…Lock-in PeriodA minimum holding period during which an investment cannot b…Lumpsum InvestmentInvesting a larger amount in one go, rather than spreading i…Mutual FundA professionally managed, pooled investment that collects mo…NAV (Net Asset Value)The per-unit value of a mutual fund — its total assets minus…NFO (New Fund Offer)The initial subscription period when a new mutual fund schem…Portfolio Turnover RatioHow often a fund buys and sells its holdings in a year — hig…R-SquaredA measure (0–100%) of how much of a fund’s movement is expla…RedemptionSelling your mutual-fund units back to the fund to get cash,…Regular PlanA mutual fund plan bought through a distributor who earns a …RiskometerA SEBI-mandated dial on every mutual fund showing its risk l…Rolling ReturnsReturns measured over many overlapping periods, giving a fai…Rupee Cost AveragingThe effect of investing a fixed sum regularly: you buy more …Sharpe RatioA measure of return per unit of risk — higher is better. It …SID / SAI / KIMA mutual fund’s offer documents — the Scheme Information Doc…Side PocketingSeparating risky or defaulted debt holdings in a fund into a…SIP (Systematic Investment Plan)Investing a fixed amount in a mutual fund at regular interva…SIP Top-Up (Step-Up)A feature to automatically increase your SIP amount at set i…Sortino RatioLike the Sharpe ratio but it penalises only downside volatil…Standard DeviationA statistical measure of how much a fund’s returns swing aro…STP (Systematic Transfer Plan)Automatically transferring a fixed amount from one mutual fu…Switch (Mutual Funds)Moving your investment from one scheme to another within the…SWP (Systematic Withdrawal Plan)A facility to withdraw a fixed amount from a mutual fund at …Target Maturity FundA debt fund that holds bonds maturing around a fixed date, o…Thematic / Sectoral FundA fund that invests around a single theme or sector (e.g. te…Total Return Index (TRI)An index version that assumes dividends are reinvested, givi…Tracking ErrorHow closely an index fund or ETF follows its benchmark — a l…
Fundamentals
ARR / MRRRecurring revenue metrics for subscription businesses — Mont…Asset TurnoverRevenue divided by total assets — how efficiently a company …Auditor’s QualificationA caveat the auditor adds when they can’t fully vouch for th…Balance SheetA snapshot of what a company owns (assets) and owes (liabili…Book ValueA company’s net worth per share — total assets minus liabili…BRSRThe Business Responsibility and Sustainability Report that l…CAC (Customer Acquisition Cost)The average cost to acquire one new customer, including mark…Capex (Capital Expenditure)Money a company spends on long-term assets like plants and m…Capital Adequacy Ratio (CAR)A bank’s capital as a percentage of its risk-weighted assets…CASA RatioThe share of a bank’s deposits in low-cost current and savin…Cash Burn & RunwayCash burn is how fast a company spends its cash reserves; ru…Cash Flow StatementA financial statement tracking cash in and out across operat…Cash Per ShareA company’s cash and equivalents divided by shares outstandi…Churn RateThe percentage of customers (or revenue) lost over a period …Contingent LiabilityA possible future obligation (like a lawsuit or guarantee) t…Contribution MarginRevenue left after variable costs, available to cover fixed …Current RatioCurrent assets divided by current liabilities — a liquidity …DCF (Discounted Cash Flow)A valuation method that estimates a company’s worth by proje…Debt-to-Equity RatioA company’s total debt divided by shareholders’ equity — a m…Deferred TaxA balance-sheet item from timing differences between account…Depreciation & AmortisationSpreading the cost of a tangible (depreciation) or intangibl…Dividend Discount Model (DDM)A valuation method that values a stock as the present value …Dividend Payout RatioThe share of net profit paid out as dividends. The rest is r…Dividend Per Share (DPS)The total dividend declared divided by the number of shares …Earnings YieldEarnings per share divided by price — the inverse of the P/E…EBIT (Operating Profit)Earnings Before Interest and Taxes — a company’s profit from…EBITDAEarnings Before Interest, Taxes, Depreciation and Amortisati…Enterprise Value (EV)A company’s total value — market cap plus net debt — represe…EPS (Earnings Per Share)A company’s net profit divided by its number of shares — pro…EV/EBITDAEnterprise value divided by EBITDA — a valuation multiple th…Financial LeverageThe use of debt to finance a company — it amplifies returns …Free Cash Flow (FCF)The cash a company generates after capital spending — the mo…GMV (Gross Merchandise Value)The total value of goods sold through a platform over a peri…GoodwillAn intangible asset recorded when one company buys another f…Interest Coverage RatioOperating profit (EBIT) divided by interest expense — how co…LTV (Lifetime Value)The total profit a business expects from a customer over the…Market-Cap-to-GDP (Buffett Indicator)Total stock market capitalisation divided by GDP — a broad g…Net DebtA company’s total debt minus its cash and equivalents — what…Net ProfitA company’s earnings after all expenses, interest and taxes …NIM (Net Interest Margin)The difference between the interest a bank earns on loans an…NPA (Non-Performing Asset)A loan on which the borrower has stopped paying interest or …Operating LeverageHow much a company’s profit rises (or falls) with sales, giv…Order BookThe total value of confirmed future orders a company has, gi…P/B RatioPrice-to-book — a stock’s price divided by its book value pe…P/E RatioPrice-to-earnings — a stock’s price divided by its earnings …PEG RatioThe P/E ratio divided by the earnings growth rate — a valuat…Pledged SharesPromoter shares used as collateral for loans. High pledging …Price-to-Sales (P/S)Market cap divided by revenue — a valuation multiple useful …Profit MarginProfit as a percentage of revenue — how much of each rupee o…Promoter HoldingThe percentage of a company owned by its founders/promoters.…ProvisioningMoney a bank sets aside to cover expected loan losses, which…Quick Ratio (Acid Test)A stricter liquidity measure — current assets minus inventor…Related-Party TransactionA deal between a company and its promoters, directors or gro…Retained EarningsThe cumulative profits a company has kept and reinvested rat…RevenueThe total income a company earns from its business before an…ROA (Return on Assets)Net profit as a percentage of total assets — how efficiently…ROCE (Return on Capital Employed)Operating profit as a percentage of total capital employed —…ROE (Return on Equity)Net profit as a percentage of shareholders’ equity — how eff…Take RateThe share of GMV a platform keeps as its revenue (commission…Unit EconomicsThe revenue and cost of a single unit (a customer or order) …ValuationThe process of estimating a company’s or asset’s worth, usin…WACC (Cost of Capital)The blended rate a company pays to finance itself from debt …Working CapitalCurrent assets minus current liabilities — the capital tied …
Analysis
52-Week High / LowThe highest and lowest price a stock has traded over the pas…ADX (Average Directional Index)A technical indicator measuring the strength of a trend (not…All-Time High (ATH)The highest price a stock or index has ever reached — new AT…Anchoring BiasRelying too heavily on the first number you see — like a sto…ATR (Average True Range)A volatility measure of the average range a price moves over…BetaA measure of a stock’s volatility relative to the market. A …Bollinger BandsA volatility indicator plotting bands two standard deviation…BreakoutWhen a price moves decisively beyond a support or resistance…Candlestick ChartA price chart where each candle shows the open, high, low an…Confirmation BiasSeeking out information that supports what you already belie…ConsolidationA period when price moves sideways in a range, pausing after…Cup and HandleA bullish continuation pattern shaped like a cup followed by…Disposition EffectThe tendency to sell winners too early and hold losers too l…DivergenceWhen price and an indicator (like RSI) move in opposite dire…DojiA candlestick with almost equal open and close, signalling i…Double Top & Double BottomReversal patterns: a double top (two peaks) hints at a fall;…Dow TheoryA foundational set of principles of technical analysis, hold…Elliott Wave TheoryA theory that markets move in repeating five-wave trends and…Engulfing PatternA two-candle pattern where the second candle fully engulfs t…Fakeout (False Breakout)When price appears to break a level but quickly reverses bac…Fibonacci RetracementHorizontal levels (38.2%, 50%, 61.8%) drawn from a move, use…Flag & PennantShort continuation patterns after a sharp move — a brief con…FOMO (Fear of Missing Out)The urge to chase a rising stock for fear of missing gains —…Fundamental AnalysisEvaluating a company’s intrinsic value using financials, bus…Gap (Up / Down)A space on the chart where price opens sharply higher or low…HammerA candlestick with a small body and a long lower wick, appea…Head and ShouldersA reversal chart pattern of three peaks — a higher middle pe…Heikin AshiA modified candlestick chart that averages prices to smooth …Herd MentalityFollowing the crowd into or out of investments rather than d…Ichimoku CloudA comprehensive indicator showing support, resistance, trend…India VIXIndia’s volatility index, derived from Nifty option prices —…Line & Bar ChartsA line chart joins closing prices into a simple trend line; …Logarithmic ScaleA chart scale where equal distances represent equal percenta…Loss AversionThe tendency to feel losses more strongly than equivalent ga…MACDA momentum indicator showing the relationship between two mo…MarubozuA candlestick with no wicks — a full body — signalling stron…Morning & Evening StarThree-candle reversal patterns — a morning star marks a bull…Moving AverageThe average price over a set number of periods, smoothing ou…OBV (On-Balance Volume)A volume-based indicator that adds volume on up days and sub…OHLC (Open, High, Low, Close)The four key prices for a period — the building blocks of ca…Overconfidence BiasOverestimating your own knowledge or ability, leading to ove…OvertradingTrading too frequently or too large, often to recover losses…Parabolic SARA trend-following indicator plotting dots above or below pri…Pivot PointsIntraday support and resistance levels calculated from the p…Position SizingDeciding how much capital to risk on a single trade, so no o…Price ChannelTwo parallel trendlines containing price, used to trade boun…Recency BiasOverweighting recent events — assuming a rising market will …Relative StrengthHow a stock performs compared with an index or peers — leade…RSI (Relative Strength Index)A momentum indicator from 0–100 that gauges whether a stock …Shooting StarA candlestick with a small body and long upper wick after a …Stochastic OscillatorA momentum indicator (0–100) comparing the close to its rece…Sunk Cost FallacySticking with a losing investment because of what you’ve alr…SupertrendA trend-following indicator plotted on price that flips betw…Support & ResistancePrice levels where a stock tends to stop falling (support) o…Technical AnalysisStudying price charts, patterns and indicators to forecast l…TimeframeThe period each candle or bar represents — from 1-minute (in…Trading DisciplineSticking to a plan — entries, stop-losses and position sizin…Trading RangeA band between a support floor and resistance ceiling within…TrendThe general direction of a price over time — up (higher high…TrendlineA straight line drawn along a series of highs or lows to vis…Triangle PatternA continuation chart pattern where price converges between t…VolatilityThe degree to which a price fluctuates over time. High volat…Volume ProfileA chart showing how much volume traded at each price level, …VWAPVolume-Weighted Average Price — the average price weighted b…
Fixed income
Accrued InterestInterest a bond has earned since the last coupon but not yet…AT1 / Perpetual BondBonds with no fixed maturity that pay interest indefinitely;…BondA debt instrument where you lend money to an issuer (governm…Callable BondA bond the issuer can redeem (call) before maturity, usually…Certificate of Deposit (CD)A short-term, negotiable deposit instrument issued by banks …Commercial Paper (CP)Short-term, unsecured debt issued by companies to meet worki…Convertible BondA bond that can be converted into a set number of the issuer…ConvexityA measure of how a bond’s duration itself changes as yields …Coupon RateThe fixed annual interest a bond pays, as a percentage of it…Credit RatingAn assessment of a borrower’s ability to repay debt, graded …DurationA measure of how sensitive a bond’s price is to interest-rat…Fixed Deposit (FD)A bank or company deposit that pays a fixed interest rate fo…G-Sec (Government Security)A bond issued by the Government of India, considered the saf…Green BondA bond whose proceeds fund environmentally friendly projects…KVP (Kisan Vikas Patra)A government small-savings certificate that doubles your mon…NCD (Non-Convertible Debenture)A fixed-income instrument issued by companies to raise debt,…RBI Floating Rate Savings BondA government savings bond with a 7-year lock-in whose intere…Recurring Deposit (RD)A deposit where you invest a fixed amount every month for a …SDL (State Development Loan)Bonds issued by state governments to fund their spending — s…SGB (Sovereign Gold Bond)A government bond denominated in grams of gold, paying inter…Tax-Free BondsBonds (usually from government-backed entities) whose intere…Treasury Bills (T-Bills)Short-term government securities (up to 364 days) issued at …YieldThe effective return on a bond, accounting for its price, co…Zero-Coupon BondA bond that pays no periodic interest but is issued at a dis…
Charges
BrokerageThe fee a broker charges to execute your trades. ROAR charge…DP ChargesA small fee charged by the depository and DP when shares are…Stamp DutyA government levy on the purchase of securities, charged as …STT (Securities Transaction Tax)A statutory tax levied on the purchase and sale of securitie…
Tax
Advance TaxIncome tax paid in instalments through the year rather than …APY (Atal Pension Yojana)A government pension scheme for workers in the unorganised s…Capital Gains TaxTax on the profit from selling a capital asset such as share…Clubbing of IncomeA rule where income from assets gifted to a spouse or minor …DTAA (Double Taxation Avoidance)A treaty between two countries that stops the same income be…EPF (Employees’ Provident Fund)A retirement savings scheme for salaried employees, with mon…Form 16A certificate from your employer showing salary paid and TDS…Form 26AS / AISTax statements showing your TDS, advance tax and reported fi…Gift Tax on SharesShares received as a gift above ₹50,000 from a non-relative …GrandfatheringA rule that protects gains made up to a cut-off date from a …IndexationAdjusting an asset’s purchase price for inflation to reduce …ITR (Income Tax Return)The annual form in which you report income, claim deductions…LTCG (Long-Term Capital Gains)Gains on assets held beyond a threshold (over 12 months for …NPS (National Pension System)A government-backed retirement scheme where you invest regul…NSC (National Savings Certificate)A government-backed fixed-income post-office scheme with a 5…PPF (Public Provident Fund)A government-backed, tax-free long-term savings scheme with …Presumptive TaxationA simplified scheme (44AD/44ADA) where small businesses/prof…SCSS (Senior Citizens’ Savings Scheme)A government scheme for those aged 60+, offering a high fixe…Section 54EC BondsSpecified bonds (e.g. REC/NHAI) in which you can invest long…Section 80CAn Income Tax Act provision allowing deductions up to ₹1.5 l…Section 80DA deduction for health-insurance premiums paid for yourself …Set-off & Carry-Forward of LossesTax rules letting you offset capital losses against gains, a…STCG (Short-Term Capital Gains)Gains on assets held for a short period (12 months or less f…Sukanya Samriddhi Yojana (SSY)A government savings scheme for a girl child, offering a hig…SurchargeAn extra tax on the income tax itself, levied on high income…Tax-Loss HarvestingSelling loss-making investments to book losses that offset t…TCS (Tax Collected at Source)Tax a seller collects from the buyer at sale and deposits wi…TDS (Tax Deducted at Source)Tax collected at the point of income (e.g. on dividends or i…
Economy
Balance of Payments (BoP)A record of all economic transactions between a country and …Base EffectHow an unusually high or low figure in the comparison period…Capital AccountThe part of the balance of payments covering cross-border in…Core Sector (Eight Core Industries)Eight key industries (like coal, steel, cement, electricity)…CPI (Consumer Price Index)An index tracking the average change in prices of a basket o…CRR & SLRRBI tools: CRR is the cash banks must keep with the RBI; SLR…Current Account Deficit (CAD)When a country imports more goods, services and income than …DisinvestmentThe government selling part of its stake in public-sector co…Emerging MarketsDeveloping economies like India with high growth potential a…FII & DIIForeign Institutional Investors and Domestic Institutional I…Fiscal ConsolidationGovernment efforts to reduce the fiscal deficit by cutting s…Fiscal DeficitThe gap between government spending and its income (excludin…Forex ReservesA country’s stock of foreign currencies and gold held by the…GDP (Gross Domestic Product)The total value of goods and services produced in a country …GDP Growth RateThe percentage increase in a country’s economic output over …GVA (Gross Value Added)The value of goods and services produced, measured from the …IIP (Index of Industrial Production)A monthly index tracking the output of Indian industry — min…InflationThe rate at which the general level of prices rises over tim…Inflation TargetingThe RBI’s framework of keeping CPI inflation around a set ta…MCLR & Repo-Linked RatesBenchmarks banks use to price loans — MCLR is the internal c…Monetary PolicyThe RBI’s management of interest rates and money supply to c…MPC (Monetary Policy Committee)The RBI committee that sets the repo rate to keep inflation …OMO (Open Market Operations)The RBI’s buying or selling of government securities to mana…Output GapThe difference between actual and potential economic output.…PLI SchemeA Production-Linked Incentive scheme where the government re…PMI (Purchasing Managers’ Index)A survey-based index of business activity — above 50 means e…Real Interest RateThe interest rate after subtracting inflation — what a lende…RecessionA significant, sustained decline in economic activity, commo…Repo RateThe interest rate at which the RBI lends to commercial banks…Reverse Repo RateThe rate at which the RBI borrows from banks, the floor of t…Safe-Haven AssetAn asset expected to hold or gain value during market turmoi…StagflationThe painful mix of stagnant growth and high inflation, which…Trade DeficitWhen a country imports more goods than it exports — a compon…Union BudgetThe government’s annual statement of income and spending, wh…US Federal Reserve (Fed)The US central bank, whose interest-rate decisions (via the …US Treasury YieldThe yield on US government bonds — the global “risk-free” be…WPI (Wholesale Price Index)An index tracking wholesale-level price changes — a measure …Yield CurveA graph of bond yields across maturities. An inverted curve …
Portfolio
AIF (Alternative Investment Fund)A privately pooled fund (private equity, hedge funds, ventur…Asset AllocationHow you divide your investments among asset classes such as …Averaging DownBuying more of a falling asset to lower your average cost — …Basket InvestingInvesting in a ready-made basket of stocks or ETFs built aro…Buy and HoldA long-term strategy of buying quality assets and holding th…CAGR (Compound Annual Growth Rate)The smoothed annual rate at which an investment grows over a…CompoundingEarning returns on both your original investment and the ret…CorrelationA measure (−1 to +1) of how two assets move relative to each…DiversificationSpreading investments across different assets, sectors or ge…Dividend ReinvestmentUsing dividends received to buy more shares or units instead…DrawdownThe peak-to-trough fall in an investment’s value, a measure …Economic MoatA durable competitive advantage — brand, network, cost or sw…Emergency FundMoney set aside in safe, liquid instruments to cover unexpec…ESG InvestingInvesting that weighs Environmental, Social and Governance f…Financial PlanningThe process of setting money goals and building a plan — bud…Goal-Based InvestingInvesting with specific goals in mind (a house, education, r…Growth InvestingInvesting in companies expected to grow earnings faster than…InvIT (Infrastructure Investment Trust)A listed trust that owns operating infrastructure assets (li…Margin of SafetyBuying an asset well below your estimate of its intrinsic va…Mean ReversionThe tendency of prices or returns to drift back toward their…PMS (Portfolio Management Service)A professionally managed, personalised portfolio of stocks f…PortfolioThe complete collection of investments you hold — stocks, mu…Power of CompoundingThe outsized long-term effect of compounding — the earlier a…Real ReturnYour investment return after subtracting inflation — what yo…RebalancingPeriodically restoring your portfolio to its target asset al…REIT (Real Estate Investment Trust)A listed trust that owns income-generating commercial real e…ReturnsThe gain or loss on an investment over a period, usually exp…Risk ManagementThe practice of identifying, sizing and limiting the risk in…Risk ToleranceHow much volatility and potential loss you’re willing and ab…Risk-Reward RatioThe ratio of how much you stand to lose versus gain on a tra…SIF (Specialised Investment Fund)A SEBI product category between mutual funds and PMS/AIF, al…Systematic vs Unsystematic RiskSystematic (market) risk affects the whole market and can’t …Value at Risk (VaR)A statistical estimate of the maximum loss a portfolio could…Value AveragingAn investing method where you adjust each instalment so your…Value InvestingAn approach of buying stocks that appear to trade below thei…XIRRThe annualised return for investments with multiple cash flo…
Commodities
Insurance
AnnuityA product that pays a regular income for life (or a period) …Claim Settlement RatioThe percentage of claims an insurer settles out of those rec…Deductible / Co-payThe portion of a claim you pay yourself — a deductible is a …Health Insurance (Mediclaim)Insurance that covers hospitalisation and medical expenses, …IRDAIThe Insurance Regulatory and Development Authority of India …No-Claim Bonus (NCB)A reward — a discount or higher cover — for not making a cla…Sum AssuredThe guaranteed amount an insurer pays on a valid claim — the…Term InsurancePure life cover that pays a lump sum to your family if you d…ULIPA Unit-Linked Insurance Plan combines life cover with market…Waiting PeriodThe time after buying a health policy before certain conditi…
Glossary — frequently asked questions
What is a stock market glossary?
A stock market glossary explains investing and trading terms in plain English — from demat accounts and SIPs to P/E ratios and option Greeks — so you can understand the markets with confidence.
How many terms are in the ROAR glossary?
The ROAR glossary currently defines 503 key investing, trading, mutual-fund, IPO and tax terms, each with a simple definition and example.
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