Shares are the units of the ownership of a company, traded on the stock market.
The National Stock Exchange of India Limited (NSE) is India’s largest financial market.
BSE is Bombay Stock Exchange
Stocks can be divided according to sectoral bifurcation. It means shares can be categorized under on group. Sectors can be divided into auto sectors, pharma sector etc
Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by multiplying the current market price of the company’s share with the total outstanding shares of the company.
Blue-chip stocks are often large-cap stocks, which typically mean they have a market valuation of $10 billion or more.
Mid cap – A mid cap is generally described as a company with a market capitalization between $2 billion and $10 billion.
Small cap – A small cap is generally a company with a market capitalization of between $300 million and $2 billion.
Bank Nifty represents the 12 most liquid and large capitalized stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian banking sector.. Banks included are AXISBANK, BANKBARODA, FEDERALBNK, HDFCBANK, ICICIBANK, IDFCFIRSTB, INDUSINDBK, KOTAKBANK, PNB, RBLBANK, SBIN and YESBANK
The 52-week high and low refers to the highest and lowest market prices of a given security over a 52-week (one year) period.
An exchange-traded fund (ETF) is a basket of securities you buy or sell through a brokerage firm on a stock exchange. ETFs are offered on virtually all asset classes ranging from traditional investments to alternative assets like commodities or currencies.
The Securities and Exchange Board of India (SEBI) is the leading regulator of the securities market. SEBI drafts regulations and statutes in its legislative capacity pass rulings and orders in its judicial capacity and conduct investigations and enforcement actions.
A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market
Corporate actions are actions taken by a company that impact the shareholders value directly. It is an event that brings material changes to a company and affects its stakeholders.
Rights issue is an additional issue of shares by a company for its existing shareholders. The existing shareholders have their right to subscribe to these shares unless some special rights reserve them for any other individuals.
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.
Firm when earns supernormal amount of profits, these are converted into Capital and divided amongst the shareholders free of cost in a proportion of their respective holdings.
Price Earnings ratio is the ratio of company’s current share price to its earnings per share. A high P/E ratio means that investors are anticipating higher growth in the future.
EPS represents the portion of a company’s earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock
Earnings per share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock
Stop loss is used as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade
Intraday trading, also called day trading, is the buying and selling of stocks and other financial instruments within the same day.
In order for a stock not to be allowed to freely move upwards or fall downwards, exchanges usually limit the maximum (and minimum) price moment of the stock. These limits are called circuit limits.
An upper circuit is the maximum price to which a stock is allowed to move upwards.
A lower circuit is the minimum price to which a stock is allowed to fall downwards.
A company’s free float refers to the number of outstanding shares that are available to the public for trade.
A basis point is the smallest measure used in quoting yields on fixed income products. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. Therefore, 100 basis points would be equivalent to 1%.
Trading volume is the number of shares or contracts traded in a security or an entire market during a given period of time.
A brokerage fee is a fee charged by a broker to execute transactions. Brokers charge brokerage fees for services such as intra-day, delivery, options, etc
Volatility is a measure of the rate of fluctuations in the price of a security over time. It indicates the level of risk associated with the price changes of a security.
Currency appreciation is an increase in the value of one currency in relation to another currency. For example, the quote of USD INR moves from Rs. 65.00 to Rs. 65.65, we say that USD has appreciated by INR 0.65, this means now you have to pay more for purchasing 1 unit of base currency.