Sunday, 26 April 2015

Stock Market Terminology

S.No

  Stock Terms           

is equal to (in Ratio)

1 Stock/Share Also referred to share or equity, stock is the basic ownership unit of a company.
2

Margin Call


A demand for additional funds because of adverse price movement. You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. 

3 After-Hour's deal The stock market usually closes at 4:00pm. After this scheduled time, deals can also be made but the transaction is dated the next day, known as an after-hours deal.

4 Annual Report An audit report to shareholders produced yearly.

5 Balance Sheet The financial statement which shows the liabilities and assets of a company.

6 Bearer Stocks This is the stock that is unregistered with the owner’s name.

7 Bed and Breakfast Deal This refers to the sale of share and repurchase on another day. It’s done to set up profit or loss for the purpose of tax.

8 Bid Price sale price of stocks or shares.

9 Blue Chip These are shares of big and reputed companies.

10 Call An extra installment due on shares.

11 Capital The amount of money used for setting up a new business.

12 Contract Note This is a printed confirmation letter from any broker indicating a bargain which is carried out.

13 Coupon Refers to interest amount payable only for fixed interest stock.

14 Dawn Raid Refers to the buying of a huge amount of shares in the morning at the opening of stock market.

15 Liquidation Converting the prevailing assets to cash.

16 Offer Price Refers to the specific price at which one can buy stocks and shares.

17 Options the right to purchase (call option) and sell (put option) a particular share at a particular price within a particular period.

18 Portfolio A selection of shares usually held by a person or fund.

19 Proxy Anybody who votes on another person’s behalf if the person is unable to attend a shareholders’ meeting.

20 Earnings Per Share [EPS] (Company's Profit - Dividends) / Outstanding Shares

21 Price-Earning Ratio [P/E]

Market Value per Share / EPS
22 Put-Call Ratio [P/C] PUT option volume / CALL option volume
23 Book Value Tangible Assets - Liabilities
24 Price-To-Book [P/B Ratio]

Stock Price / Book Value

25 Dividend per Share

Dividend % * Face Value
26 Dividend Yield
Annual Dividends per Share / Price per Share

27 Face Value Original Cost of the Stock shown on the Certificate.

28 American Depositary Receipt (ADR) A stock representing a specified number of shares in a foreign corporation. ADRs are bought and sold in the American markets just like regular stocks.

29 Bullish
One who expects prices to rise.

30
Bearish


One who expects the prices to decrease.

31 Derivatives A derivative is a contract between two parties which derives its value/price from an underlying asset. 

32 GAAP Generally Accepted Accounting Principles

33 Initial Margin The funds required when a position (or a short position) is opened.

34 NASDAQ National Association of Securities Dealers Automatic Quotation System

35 NSCCL National Securities Clearing Corporation Ltd.

36 NSE National Stock Exhange Of India ltd.

37 SEBI Securities and Exchange Board of India

38 Settlement Price Price that is used to calculate gains and losses in futures and options market accounts.

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