Glossary - Religare Broking

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52 Week High

The 52-week high is the highest trading price of a particular stock over the past twelve months. Stock investors and traders often use the name to indicate as a measure to analyse the current stock’s price and get some information regarding price movement and trends, as well as market sentiment. How 52 Week High Works […]

Accrued Interest

Overview Accrued interest is the interest that has been earned through a loan or a bond but has not been paid to the lender yet. It builds up over time and it is usually settled on some specific payment dates. This concept will help businesses and individuals track the amount of interest that is owed […]

Accumulation Distribution Line

The Accumulation Distribution Line (ADL) is a tool that helps investors understand if people are mostly buying (accumulating) or selling (distributing) a stock. It does this by looking at the stock’s price changes and trading volume. This indicator helps investors to spot trends and decide whether to buy or sell a stock. How the Accumulation […]

Accumulation Distribution Line

Add-on Offering

An add-on offering means the listing company issuing additional shares in an effort to raise money. It is usually aimed at raising funds to continue operations, undertake business growth activities, or fund new businesses. In Indian markets, it is also known as a Follow-on Public Offer (FPO). Besides FPOs, companies also mobilise finance through a […]

Adjusted Futures Price

The adjusted futures price refers to the modified price of a futures contract after changes such as dividends, stock splits, or other corporate actions. This adjustment ensures traders do not face unexpected losses or gains due to external factors unrelated to market movements. The goal is to maintain fairness in trading and reflect the true […]

Advance Decline Line

Overview The advance Decline Line (AD Line) is one of the most straightforward ways of knowing if the stock market is advancing or declining. It is determined by merely the subtraction of the number of stocks that are declining from the number of stocks that are gaining. This tool will help investors to see the […]

Advance Payment Guarantee/Bond

An advance payment guarantee, also understood as an “Advance Payment Bond”, stands out as a deal to confirm the return of the advanced amounts when the receiving party fails to satisfy the contractual commitments. This contract is normal in the area of dealings, which consist of NCDs, government bonds and other deficit instruments. The party […]

Adverse Excursion

Adverse Excursion is the movement of an asset in the opposite direction to that in which the trader is long after the deal. The maximum adverse Excursion (MAE) specifies the greatest unfavourable price movement that takes place during the duration of the trade. Traders apply MAE as a risk measure and take stop-loss positions. Why […]

Algo Trading

What is Algo Trading? In the fast-paced world of stock trading, quick decisions are key. Algorithmic trading uses computer programs, known as algorithms, to make trades automatically. These algorithms follow specific rules based on time, price, and volume, executing trades faster and more accurately than human traders could. Popular Algo Trading Strategies in India In […]

Algorithmic Trading

Overview Algorithmic trading is the automatic method of purchasing and selling shares. It is carried out by a computer program. It is carried out following previously established instructions depending on such aspects as time, price and trade volume. This will assist investors in making trades fast and efficiently. Most traders like the algorithmic trading method […]

Annual Net Profit Margin

The annual net profit margin measures a company’s profitability by calculating the percentage of net profit earned from total revenue over a fiscal year. Itis calculated as (Net Profit / Total Revenue) * 100. It shows how effectively a company manages its costs to generate profit. Key points to keep in mind: Publicly traded companies […]

Ask Price

Overview Ask price is the lowest price at which the seller is ready to sell a security. It is also known as the buying price as this is the price at which the buyers purchase the security. Understanding the ask price will help investors decide whether they should buy a stock or wait for a […]

Asset Management Company (AMC)

Overview An Asset Management Company (AMC) can help investors grow their money by managing a group of funds and investing in many different financial securities. These companies aim to match the financial goals of their clients by diversifying their investments. AMCs make investing easier by simply offering different types of options. This approach reduces the […]

Asset Management Company (AMC)

A SEBI-registered Asset Management Company manages pooled investments from clients, primarily through mutual funds. AMCs make investment decisions, manage the funds’ portfolios, and charge fees for their services. They may also manage other investment vehicles like hedge funds and pension plans. AMCs offer diversification benefits due to their access to larger resources.

Assets

Assets are things a business owns that increase the value of its business. They can be anything from money, buildings, and machinery to shares and even names. Assets are valuable because they enable businesses to expand and earn a profit. They’re included on a business’s balance sheet and indicate how financially fit the business is. […]

At The Money

Option traders know that “At the Money” is when the strike price of an option is equal to the market price of an underlying stock. This means the strike price equals the market price and the option holds no intrinsic value. How At the Money Works At-the-money option trading is good for the investor because these […]

Auction

An auction in stocks is a process where shares are bought and sold depending on demand and supply. It helps determine the fair price of a stock. The auction system is a guarantee of transparency and efficiency in stock markets. How Auctions Work Stock auctions occur when there’s a disparity between buy and sell orders. […]

Authorized capital

Authorized capital, also known as authorized share capital, represents the maximum amount of equity capital a company is legally permitted to issue to shareholders. It’s a key figure in a company’s financial structure, defining the upper limit of its potential equity financing. Key Points Maximum Limit: The authorized capital acts as a ceiling, setting the […]

Average P/E Ratio

Earnings Per Share Ratio is one of the most preferred indicators used in establishing an investor’s judgment that a company’s respective piece of stock is fairly priced, overpriced, or underpriced. It is determined by dividing the market price of the shares by earnings per share. If the ratio is high, it shows optimism about its […]

Average True Range (ATR)

The Average True Range (ATR) is an important indicator in trading markets. It serves an important purpose, such as technical analysis of the markets traded financially, e.g., stocks or foreign currencies, based on an asset’s volatility characteristics. In that case, a trader would interpret the ATR to consider the average movement of an asset’s price […]

Average True Range (ATR)

The Average True Range (ATR) is a technical analysis indicator that helps traders assess market volatility. Developed by J. Welles Wilder, ATR provides insights into the intensity of price movements over a given period, allowing traders to make informed decisions. How ATR is Calculated ATR is derived from a 14-day simple moving average of True […]

Back End Load

A Back-End Load is a fee/commission investors pay when they sell/redeem their mutual fund units. This charge does not apply to all mutual funds, but some fund houses levy this charge to prevent early withdrawal and motivate an investor for long-term investment. Back End Load is usually expressed as a percentage of the total (value) of the sold […]

Backtesting

Understanding key financial concepts is essential for investors and traders to make informed decisions. This guide covers important terms like Backtesting, Acid Test Ratio, Alpha Figure, Annual Fund Operating Expenses, and Asset Allocation, all of which play a crucial role in financial analysis and investment strategies. Key Concepts Backtesting: A technique used to test a […]

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It summarizes what a company owns (assets) and what it owes (liabilities), as well as the owner’s stake in the company (shareholder’s equity). Key Components Assets: Resources controlled by the company provide future […]

Basing

Basing is the period when a stock moves a little. The movement can be either up or down. It happens when the stock is neither rising nor falling completely but are instead moving sideways. This creates specific shapes on the stock charts like a “cup with a handle” shape. How Basing Works During the basing […]

Block trading

A block trade in stocks is the sale or purchase of bulk shares in a single transaction. Generally, these trades account for a minimum of 10,000 shares or securities worth Rs 1 crore. Block trades are mainly executed by institutional investors, like mutual funds, pension funds, and large banks, so they can buy or sell […]

Book Running Lead Manager (BRLM)

Who is a Book Running Lead Manager? A Book Running Lead Manager (BRLM) is crucial in helping companies raise capital through securities issuance, like IPOs. They coordinate the entire process to ensure the company gets the right value for its shares. Their expertise helps manage risks, build trust with investors, and ensure the process runs […]

Book-entry Securities

Book-entry securities are an innovative method of holding investments in a paper-certificate-free form. Book-entry securities are entered electronically and may include information such as the name of the owner, tax ID number, and amount of the investment. With them being digital, they become easier to handle and transfer. Book-entry securities save investors the risk of […]

Book-to-Bill Ratio

The book-to-bill ratio is the ratio of new orders received to the number of units shipped within a specific period, often used in the semiconductor industry. A ratio above 1 indicates sales growth, while a ratio below 1 suggests shrinking sales.

Booked Orders

Booked orders are orders that do not get traded when ordered. These orders are also known as outstanding orders and remain in the system until they are matched with a buyer or a seller. Investors use them to quote a desired price they wish to purchase or sell and ensure they obtain their desired price […]

Bought Out Deal

Overview A bought out deal is a way for the private companies to sell their shares to the public. This is done with the help of a sponsor. The sponsor can be either a bank or a financial institution or even an individual. Instead of selling a share directly to the public, the company can […]

Bounce

A bounce, in stock market terms, is the bounce back of stock prices following a drop. When stocks fall sharply, they often bounce back to some degree for a short period, which looks like an upward movement. This movement is due to investor confidence, market correction, or other external factors affecting prices. How Bounce Works […]

Bracket Orders

A bracket order is a sophisticated trading technique that allows day traders to place a main order along with two accompanying orders: a stop-loss order and a target order. This combination creates a “bracket” around the main trade, automating the process of limiting potential losses and securing profits. It’s a powerful tool for managing risk […]

Brokerage

Brokerage is the fee charged by a broker (i.e. stock broker, financial services agent) for the processing of a transaction on your behalf, which can include the processing, execution, and transmission of a trade, usually a percentage of the transaction value or a flat fee depending on the broker and service in question. Consider it a commission, […]

BSE

Linking its roots to the ‘Native Share and Stock Brokers’ Association’, the Bombay Stock Exchange(BSE) came into existence in the year 1875 and it is one of the oldest exchanges in Asia. Through the years it has played an inestimable contribution to the capital markets in India. Development of a platform for growth for entrepreneurs […]

Bull Call Spread Strategy

The Bull Call Spread is an options trading strategy which is implemented when the investor is moderately bullish on a stock or index. This consists of purchasing an in-the-money (ITM) call and selling an out-of-the-money (OTM) call on the same underlying security with the same expiration month. This approach restricts the upside and the downside, which works […]

Bullion

What is Bullion? Bullion refers to precious metals, like gold and silver, kept as bars, coins, or ingots. These metals are valued based on their weight and purity. Unlike jewellery, bullion is mainly bought as an investment or store of value due to its stable and long-term worth. Why Should You Invest in Bullion? Bullion […]

Bureau of Indian Standards (BIS)

The Bureau of Indian Standards is India’s national standards body. It acts as the hallmarking agency for gold and silver, certifying the purity and fineness of jewellry. BIS-certified jewellry assures consumers of its quality and adherence to Indian standards. BIS Hallmarking Components BIS hallmarking consists of five components: BIS Standard mark Purity grade (e.g., 916 […]

Buying Forward

Buying forward involves buying commodities, stocks, or currencies at a predetermined price for future delivery. It assists investors in capitalizing on anticipated future price increases. When the price of a stock or currency is bound to appreciate, buying forward enables investors to buy it at a cheaper rate now and sell it in the future […]

Call Options

A call option is a financial contract that gives the buyer the right, but not the obligation, to purchase an asset (typically a stock, but also other assets like futures contracts) at a specific price (the strike price) on or before a certain date (the expiration date). The seller of the call option, known as […]

Capital

Capital is an essential part of every economy, business and investment. It refers to the resources that are used to produce any goods and services. For example, capital includes things like the machines, buildings and tools that are needed for production. However, for any investor, capital means the money, financial asset or investment made is […]

Capital Gain or Loss

Capital gain or loss occurs when you sell an asset such as a stock or property for a price higher or lower than the purchase price. If you sell it at a higher price, the profit you make is considered as capital gain. On the other hand, if you sell it at a lower price, […]

Cash Contract

Overview A cash contract is an agreement that is made between the buyer and the seller for the purchase of a commodity. The contract can either be delivered immediately or it can be set for a future date. It is a simple way through which you can trade goods without involving a complex financial process. […]

Cash Market

The cash market is the platform for buying and selling financial assets, such as stocks, bonds and commodities, through cash and on-spot. Cash-market settlements are made an on-spot term for cash-based transactions where the buyer pays, and the seller delivers assets instantly. How Cash Market Works The cash market operates at present asset prices, so […]

Charting

Charting is one of the methods used to observe and notice variations within the marketplace using graphic plotting of different monetary values such as stock prices, volumes, or interest rates. Charting permits investors and analysts to observe trends and anticipate future developments. Most traders who use the chart are trying to make sense of the […]

Clearinghouse

A clearinghouse is a financial institution that assists in settling and handling trades within the stock market. It provides secure and smooth transactions by performing as a go-between between sellers and buyers. The primary work of a clearinghouse is reporting trading information, settling trades, and overseeing the delivery of financial instruments. The system provides stability […]

Co-Manager

A co-manager, in stock trading is an underwriter who collaborates with the lead manager to make sure that the Initial Public Offering (IPO) process is a success. Although they are not members of the lead management group, co-managers play a key role in targeting specific investor niches and conducting extensive research on the stocks of […]

Commodity

The stock market trades and sells raw material products and primary goods under the category of stock commodities. These commodities are classified into two main categories: precious metals like gold, silver and agricultural goods like oil, wheat, and coffee, all of which are vital to global trade and economies. These commodities can be traded through […]

Commodity Trading Advisor

A Commodity Trading Advisor (CTA) is a professional that gives advice related to commodity trading to investors. He advises on when to sell or buy options and some contracts for foreign currencies. A CTA is particularly useful for the people who seek expert guidance in the commodity market. CTAs guide investors on how to take […]

Contract Note

A contract note is a crucial document generated by your broker after each trading day. It serves as a comprehensive record of all your transactions executed during that session. It’s essentially a detailed bill of your trading activity. Content The contract note includes the following key information for each trade: Security: The name and type […]

Covered Call Strategy

A Covered Call Strategy is used by investors who own shares and expect limited near-term growth. By selling a call option on the stock they own, investors earn a premium while holding the stock. The strategy is ideal for those with a neutral to moderately bullish outlook on the stock. How It Works The investor […]

Covered Put Strategy

A covered put strategy refers to a trading approach in the stock market where the investor shorts the underlying stock while selling a put option. This strategy is mainly used when the trader expects the underlying asset to either fall in value or remain unchanged. By selling the put option, the trader earns a premium […]

Custodian

A custodian is a firm or a bank who is responsible for holding and protecting mutual fund assets to reduce the risk involved in such investments. Through their holding of securities in physical or electronic form, custodians offer a safe method of holding and protecting such assets. This is especially true for mutual funds, which […]

Debentures

A debenture is a debt instrument that is unsecured, meaning it is not backed by any specific asset or collateral. Debenture holders rely solely on the issuer’s creditworthiness and reputation for repayment. Large corporations and governments often use debentures to raise capital.

Debt Fund

A debt fund is a mutual fund where your money is invested in fixed-income securities. They have lesser risk than equity funds and pay constant returns. Debt funds are a great idea for investors seeking stable income without investing at very high risk levels. Debt funds are also referred to as credit or fixed-income funds […]

Delivery Points

Delivery points are where commodities like gold, oil, wheat, etc., are transferred from the sellers to the buyers. They could be warehouses to hold the goods or designated sites the exchange selects for delivery. The delivery point can impact the overall trading cost, so it’s important to consider it before placing an order. How Delivery […]

Delivery Trading

Delivery trading is widely recognised as stock market delivery, which involves buying and selling across securities and transferring ownership of stocks to the buyer. You buy a stock through delivery trading, and you own the stock, and you can keep it in your broker account for as long as you want. Stocks will still be […]

Demat Account

Demat account is a special account used for the purpose of keeping shares and securities dematerialized. Instead of physically carrying copies of the share certificates, one can hold them electronically. This makes it easier, more secure, and convenient to trade. Demat account is a must for every investor who wants to invest in the shares, […]

Derivatives Market

The derivatives market is a financial market where instruments such as futures and options derive their value from an underlying asset like commodities, currencies, or securities. These instruments allow traders to hedge risks, speculate on price movements, or enhance portfolio strategies. Key Terms in the Market 52-Week High & Low: The highest and lowest prices […]

Discount Brokers

Discount brokers offer a very cost effective way through which traders can trade stocks and other financial assets. Unlike any traditional brokers, they charge lower fees and they do not earn any commissions for recommending specific stocks. Instead discount brokers provide the traders a technology driven experience which allows them to buy and sell stocks […]

Dividend Plan

A dividend plan in mutual funds offers investors a way to receive regular income through fixed dividends, which are payouts from their holdings. Unlike growth funds, where profits are reinvested, dividends in this plan are distributed directly to investors’ accounts. Major Points on Dividend Plans Tax Importance: Investors receive bonuses tax-free at the receiving end. […]

Dividend Stripping

Dividend stripping is an investment strategy in which securities—mainly stocks or mutual funds—are bought shortly before the ex-dividend date (the cutoff date to receive the dividend payment) to be sold soon after. This strategy aims to benefit from the tax advantages that dividends provide, where dividends may be tax-free or have lower tax rates. However, if the security […]

DP ID

The central depository of a country issues unique DP IDs to their registered Depository Participants through their assigned numbers. The function of a Depository Participant is to facilitate bank or brokerage firm investors with their demat account administration. Placing securities with a depository participant requires a specific ID within the demat account number to enable […]

Equilibrium price

Overview Equilibrium price denotes the price level at which the supply for a good equals the demand for it. In this scenario, the amount of products in the market corresponds to the amount of the product buyers want to acquire. Understanding the equilibrium price is an important thing to do as it helps businesses to […]

Equity Trading

Equity trading is the process of sale and purchase of shares in a company. Investors sell and purchase these shares in stock exchanges such as the NSE and BSE in India or the NYSE and LSE across the world. You become an owner of the company when you purchase a share. Equity trading enables investors […]

Equity: Ownership and Stake in a Company

Investors can make more informed decisions by understanding key financial terms such as equity, accrued expenses, all-or-none orders, and the price-to-earnings (P/E) ratio. These concepts play a crucial role in evaluating a company’s financial health, guiding investment strategies, and assessing potential risks and returns. Equity Ownership in a business, symbolized by stocks or securities, is […]

Exit Load

An exit load is a fee charged by a mutual fund when an investor redeems their units before a specified period. It’s designed to discourage frequent trading and premature withdrawals, helping the fund manager maintain a stable portfolio and cover transaction costs. Purpose Discourages Frequent Trading: Exit loads discourage investors from frequently switching between funds, […]

Filing

Filing is a critical process for any company that wishes to go public. It entails filing a copy of the company’s prospectus and other documents required by the Registrar of Companies (ROC). This ensures the company complies with all business and legal requirements before being listed in the stock market. How Filing Works It is […]

Forwards Market Commission

The main regulatory body responsible for commodity futures trading in India is the Forward Market Commission (FMC). The FMC, whose headquarters are located in Mumbai, is the regulator of the commodities futures market, akin to the role of the Securities and Exchange Board of India (SEBI) in the stock market. The FMC’s purpose is to set the […]

Fundamental Analysis

Fundamental analysis will help investors in determining the true value of a stock just by studying factors like earning reports, economic trends and also company performance. Unlike technical analysis that focuses on a short term price pattern, fundamental analysis on the other hand is used by long term investors who want to hold stocks for […]

Futures Contracts

Futures contracts are standardized agreements to buy or sell an asset at a predetermined price on a specific date in the future. Unlike spot transactions, where the exchange of assets and payment occurs immediately, futures contracts involve a delayed delivery and payment. These contracts are traded on futures exchanges, providing a regulated marketplace for price […]

Gilt Funds

Gilt funds are mutual funds that invest primarily in government securities, also known as gilts. These securities are issued by the central government and are considered to be among the safest investment options available. Gilt funds aim to provide stable returns with minimal risk. More about Gilt Funds Gilt funds invest in a range of […]

GIM Membership (CBOT)

GIM stands for Government Instrument Market. The Chicago Board of Trade (CBOT) offers GIM memberships, allowing traders to participate in trading all futures contracts listed in the GIM category, focusing on government-backed instruments.

GLOBEX

GLOBEX is an electronic trading platform that enables investors to trade futures, commodities, and derivatives. It is open 24/7 and thus available to traders from all over the globe, irrespective of geographical time differences. Since its inception, GLOBEX has emerged as the desired platform for people seeking round-the-clock trading opportunities with no time constraints. How […]

Green Shoe

A greenshoe choice, technically understood as an over-assignment option, is a condition in an underwriting contract that permits an issuer to issue extra shares, generally up to 15% of the originally proposed payment. This choice is exerted if there is an increased public need for the shares, surpassing the available amount. What Exactly Is GreenShoe? […]

Gross National Product

Gross National Product (GNP) refers to the sum of goods and services produced by a nation’s residents and enterprises within a time frame. In this case, whether the production was done somewhere or not is irrelevant. It measures a country’s total economic output by including all the earnings from its people and businesses. Even if […]

Growth Plan

A growth plan is a category of mutual fund schemes specially designed for long-term capital growth. From its name, it is clear that its basic goal is to raise the Net Asset Value (NAV) of the fund in the form of huge capital gains to investors. This plan is best for those who want to […]

Hedge Fund

Overview A hedge fund is a special type of investment fund. In this, money from different investors is taken together and invested in different financial assets. Unlike mutual funds, hedge funds are not open to the general public. Only accredited investors, those who are wealthy or any kind of financial institution can invest in these […]

IFFCO

Indian Farmers Fertiliser Cooperative Limited, or IFFCO, is among the best fertiliser cooperative federations in India. Possessing huge production and sale capacity, IFFCO plays a significant role in fulfilling the fertiliser needs of the country. As a Multistate Cooperative Society, IFFCO boasts an enormous 40,000 member cooperatives, depicting its extensive presence and reach in the […]

Initial Public Offer (IPO) Aftermarket

The Initial Public Offer (IPO) aftermarket is the trading activity of shares that comes into play only after a company makes its shares publicly available for the first time. A private company that makes its IPO offering to the public is trying to raise capital for expansion, new projects, and other corporate goals when it goes public. […]

Intraday Trading

Intraday trading which is also known as day trading is a way of buying and selling stocks within a single day. This means traders should complete their transaction before the market closes. It is a popular choice for those who want to take full advantage of the short term price movements. As all the trades […]

Investing

Investing means to buy things like stocks or bonds that can grow in value over a period of time. Instead of selling them away quickly, investors usually keep these assets for some years hoping that it will provide good returns to them. Choosing the right investment is important as it will help in building financial […]

Issue Price

An issue price represents the initial public offering value of a company’s share during an IPO or other fundraising events. A company and its underwriters establish this initial cost, which becomes operational before stocks start their stock exchange trading run. Issue price is essential because it establishes how much the company will initially spend on […]

Issuer

An issuer is any entity such as a corporation, a government, or some other financial institution that creates and sells financial instruments like stocks, bonds, or any other form of securities to raise funds. The issuance of these instruments helps provide funds to issuers from investors for the expansion of their business, infrastructure projects, or […]

Limit Order

A limit order is an order to buy or sell a security at a specific price or better. The trader sets the maximum price they are willing to pay (for a buy order) or the minimum price they are willing to accept (for a sell order). It contrasts with a market order, which executes at […]

Listing

Overview Listing refers to the process of adding a company’s shares to the stock exchange. When a company is listed, its shares can be traded officially in the stock market. In most of the countries, a company applies for a listing but in some other places, a stock exchange can list a company even if […]

Listing Date

The listing date is the date when a company’s shares first begin trading on a stock exchange. It is the date when investors can buy and sell shares in the open market. This date is significant for the company as well as investors since it decides the performance of the stock after the initial public […]

Lock-In

A lock-in period in stocks occurs when investors cannot sell their shares for a period. It is used to keep their internal people, promoters, or investors who invested early in that company because of market stability. During this period, the affiliates are prohibited from selling or transferring their shares, which ensures that price movements in […]

Long Straddle Strategy

The Long Straddle Strategy is applied if a stock or index is likely to be highly volatile but not in a known direction. It entails the purchase of both a call and a put option with the same strike price and expiry. It profits from significant price movement in either direction—either way, a significant rise […]

Long Strangle Strategy

The Long Strangle strategy is a method of options trading that gains from large price movements in either direction. It is a strategy of buying two out-of-the-money (OTM) options: a call and a put, both of the same underlying asset and the same expiration date. How Does a Long Strangle Work? The trader buys: An […]

Lot Size in Trades

The term lot size in trade is the set number of units of a particular asset bought or sold in one transaction. It helps standardise the trading quantity in financial markets. Markets like forex, stocks, or commodities might have different definitions of the lot size according to the type of asset involved. Lot size determines […]

Market Order

Market orders are instructions given to a trading platform or a broker to sell or purchase a security at the best price instantly. Compared to limit orders, the market order prioritises the swiftness of implementation over pinpointing a specific cost. Market orders are perfect for investors who aim to conduct a trade immediately and are […]

Micro Small Medium Enterprises (MSME)

Micro, Small, and Medium Enterprises are known as MSMEs and are defined as smaller businesses than large companies. MSMEs also depend on employment positions that they provide concerning the creation of export activity while growing their contribution to industrial development in the country’s economy. How MSME Works Organisations in the MSME category are defined by […]

Minimum Subscription

A minimum subscription is the minimum number of shares to be sold by a company during its Initial Public Offering (IPO) to be termed successful. Typically, this would be 90% of the total shares offered. If the company fails to achieve the minimum subscription requirement, the IPO is called off, and the investors get their […]

MSCCGMF

The Maharashtra State Co-operative Cotton Growers Marketing Federation (MSCCGMF) is a cooperative federation of cotton growers. One of the largest suppliers of cotton in the world, it produces more than 3.5 million bales of cotton annually. Though headquartered in Nagpur, Maharashtra, the organization has supported millions of cotton farmers across India. Why MSCCGMF Matters As […]

Mutual Fund Distributor

Overview A mutual fund distributor facilitates the purchase and sale of units of a mutual fund from an Asset Management Company (AMC) for the investor. It provides a connection between the investor and the mutual fund provider, so that individuals can invest without difficulty. Distributors do not invest money but assist in the transactions, and […]

NAFED

The National Agricultural Cooperative Marketing Federation of India (NAFED) is most important for helping farmers across India. Established with the specific aim of marketing crops cooperatively, NAFED adheres to a mission of maximising farmers’ well-being. NAFED supports farmers with agricultural product processing, storage, and distribution services. It also provides technical advice to aid farmers in […]

National Securities Depository Limited (NSDL)

National Securities Depository Limited (NSDL) is India’s largest and first electronic securities depository, and its head office is in Mumbai. The organization was established on November 8, 1996, and plays a critical role in India’s financial structure by facilitating the efficient and safe dematerialization of shares, making it easier for investors to engage in transactions. […]

National Stock Exchange (NSE)

NSE is the abbrivation for the National Stock Exchange which ranks among India’s largest stock exchanges. Situated in Mumbai, it was established in 1992. As such, it is not like any other stock exchange in the world since it supports share and bond transactions and, at the same time, has a fully protected, transparent arena […]

NCDEX

NCDEX Stands for National Commodity and Derivatives Exchange of India, a leading online commodity exchange in the country. NCDEX’s support from a consortium of major institutions such as ICICI Bank, Canara Bank, and the National Stock Exchange of India (NSE) makes it a powerful platform for future trading in various commodities. Such products include agricultural items such […]

Net Offer

A net offer is the amount of shares offered to the public after some portion of the total issued share is reserved for the promoters. It is a significant component of the stock market. It enables investors to purchase the shares of a company. The funds raised from the net offer will enable businesses to […]

New Issue

Overview A new issue is any security that is being sold in the market for the first time. It is not restricted to fresh issues of stocks only, even though IPOs are the most popular form. Both debt and equity securities may be brought out in the form of new issues. They are also referred […]

Nifty

Nifty, or Nifty 50, is a stock market index measuring the weighted average of 50 of India’s largest stocks (in terms of free-float market capitalisation) and most actively traded stocks on India’s National Stock Exchange (NSE). It is the benchmark for the Indian equity market and is widely accepted and used by investors and financial […]

Offer Document

An offer document is an important paper. It provides us all the details about a public issue or an offer that is for sale. If a company is making a rights issue then this document is called a letter of offer. It is always filled with the Stock Exchange and the Registrar of the Company. […]

Offline Trading

The world of trading has undergone a tremendous amount of transformations over the decades, particularly during the last twenty years. Trading, which earlier used to take place with hand signals and signs at an exchange, is known as offline trading and is today replaced by technology-based trading terminals. Technology brought in terms such as online […]

On-Balance Volume Indicator

The On-Balance Volume Indicator (OBV) is an analytical tool for traders to determine market movement patterns of stock or asset volumes. It functions as an indicator that determines trading activity by evaluating fluctuations in trading volume. A price rally produces upward movements in OBV, but downward changes occur during price declines. Tracing the volume patterns […]

Price Bands & Circuit Breakers in Trading

Price bands and circuit breakers are tools that cannot be done without in the stock exchanges to prevent frenzied price fluctuations and bring stability. Price bands limit the extent to which one share can be sold on a trading day, whereas circuit breakers are levied on market indices like the Nifty 50 and Sensex. Trading […]

Relative Strength Index

The Relative Strength Index (RSI) is a momentum indicator to evaluate whether an asset is overbought or oversold. It measures the speed and change of price movements to help traders identify potential market reversals. RSI signals when an asset’s price has moved too far, either up or down, indicating a possible price correction. How the […]

Share Market

A share market is where shares are bought and sold. These are publicly listed company shares. These shares are a fraction of the company, and if you have them, you may make money if the company expands. The share market assists companies in raising finance and also makes investors rich. It functions through stock exchanges […]

Simple Moving Averages Vs Exponential Moving Averages

For traders, moving averages (MA) are crucial tools since they can be used to spot trends and possible levels of support and resistance. The simple moving average (SMA) and the exponential moving average (EMA) are two often used varieties. The EMA prioritizes recent prices for a more responsive indicator than the SMA, which assigns equal […]

Stochastic Oscillator

The Stochastic Oscillator is a tool used by investors to see if the market is sold more or bought more. It examines the price movement’s speed and momentum, rather than the price. Dr. George Lane created the indicator in the 1950s, and it is used extensively in technical analysis. Above 80 would reflect that an […]

Stock Market Glossary

Understanding the terms of the stock market can sometimes be difficult for new investors. Nevertheless, familiarising yourself with important terms will enable you to make better choices and navigate the market more proficiently. The following is an easy-to-understand explanation of some of the most important stock market terms any investor should learn. Annual Report An […]

Top Gainers

A top gainer is a stock or a security that will increase its price during a single trading day. This means that by the time the market closes, its price will get higher than how much it was when the market opened. When the stock market performs well, there are usually more gainers than losers. […]

Top Losers

Top loser is a stock that depreciates in value throughout the period of a single trading day. This may be for a variety of reasons, for example, negative news related to the company, industry trend, or market. As soon as investors know what a top loser is, they will be more capable of monitoring the […]

Trading Account

A trading account is an account that carries cash and securities, similar to a bank account that carries salary and savings. The account is generally maintained in a financial institution, e.g., a broker, and provides a facility for the traders to view their investments and trades. Key Characteristics of a Trading Account A few of […]

Trading Indicators

Trading indicators, also known as market indicators or technical indicators, are tools used by traders to analyze market data and predict the future direction of financial instruments like stocks, indices, and commodities. These indicators are based on mathematical calculations derived from price and volume data. They help identify trends, potential reversals, and other patterns that […]

Trading Platforms

A trading platform is a program for investors and traders to buy and sell mutual funds and stocks. It is used by individuals to trade efficiently from their smartphones or computers. Trading platforms like Religare Dynami, LEAP and Religare Onlineare used by investors as they enable them to monitor stocks and trends, and hold all […]

Transfer of Shares

Transfer of shares happens when the ownership of a company or a share is transferred from one person to another. This is a common thing in the stock market wherein investors buy and sell shares. Before the transfer of the stocks is considered legal, the company whose shares are being transferred needs to be informed. […]

What are Options Payoff?

Overview Options payoff are the potential gains or losses that a trader can experience when they buy or sell options. Through options payoff, buyers can make unlimited profits and also keep their losses limited. On the other hand, sellers can only earn limited profit and their losses are unlimited. Long Asset In long assets, an […]

What are Options?

Options are financial agreements that entitle buyers to purchase or sell an asset for a predetermined price during a specific time. As opposed to most other trades, options do not oblige buyers to follow through with the sale—they can decide whether or not to do so. This provides options as an attractive means by which […]

What is a Broker?

What is a Broker? How do I choose the right Broker? In a crowded marketplace such as India, there are numerous brokers. Choosing the appropriate one is critical for easy and safe trading. A good broker trades easily, is supportive, and keeps your money secure. Understanding the broker’s role and how to select one can […]

What is a Protective Call or Synthetic Long Put?

Overview A protective call is also known as synthetic long put. It is a trading strategy that is used to manage risks. It is the opposite of a synthetic call. In this an investor first sells a stock and then buys a call option. If the stock prices go up, the call option acts as […]

What is ISIN?

A distinct 12-character alphanumeric identifier known as the International Each financial security gets its unique 12-character identifier through the International Securities Identification Number (ISIN). This code encompasses stocks, bonds, derivatives, and other exchangeable instruments. Every security can be tracked precisely since standardized identification systems enable global market exchange and settlement transactions. The International Securities Identification […]

What is MACD?

Moving Average Convergence Divergence (MACD) is a technical indicator on which the stock trading industry relies heavily. The indicator displays stock price movement trends by analysing two moving average lines. The MACD indicator contains three fundamental elements. MACD Line: The difference between a short-term moving average (usually 12 days) and a long-term moving average (usually […]

What is MSP?

The government uses the Minimum Support Price (MSP) as a controlled price. Despite market volatility, it guarantees farmers will earn at least a specific amount for their crops. The government established this policy to protect farmers from unexpected market price changes which might otherwise result in financial losses. Government authorities share MSP information to the […]

What is STT, Equity and Futures and Options?

The Securities Transaction Tax (STT) is a tax on securities purchases and sales in India. It is to decrease tax evasion and guarantee compliance in the securities market. STT was established by the Finance Act of 2004 and covers a wide range of financial products, such as equity shares that are listed on reputable stock […]

Zero Brokerage Trading

Overview Zero brokerage trading is becoming increasingly popular among investors who want to save on trading costs. With this type of account, you don’t have to pay any fees for specific transactions like equity delivery or mutual funds. It allows investors to trade more efficiently, making it a practical choice for reducing costs and maximizing […]