Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 15 terms
Recording a cost as a balance sheet asset rather than expensing it in the current period.
The single largest lever on reported profit. Spend the same cash, show a much bigger number.
Interest directly attributable to acquiring or constructing an asset that takes a substantial period to get ready, added to the cost of that asset instead of charged against profit.
The money still leaves the bank; it simply does not appear in the finance cost line. When the asset is ready capitalisation stops, the finance cost steps up with no new borrowing, and the amount already capitalised returns as depreciation rather than interest.
Share price multiplied by the number of shares outstanding — the market’s valuation of the whole company.
The real measure of how big a company is. Share price alone tells you nothing.
Market capitalisation plus total debt minus cash — the cost of acquiring the whole business.
What you would actually pay, including the debt you inherit.
Free cash flow divided by market capitalisation.
The cash return on buying the whole company. Much harder to manipulate than earnings.
A single number summarising a basket of stocks, in India generally weighted by free-float market capitalisation.
A weighted average is not the typical stock. The NIFTY can close green on a day when most of its constituents fell, because a handful of heavyweights outvote everything else.
A maintained bookkeeping number by which the aggregate weighted capitalisation of an index’s constituents is divided, adjusted whenever the basket or the share counts change so that the level stays continuous.
It is why an index does not jump when a constituent is replaced. The continuity of the line is manufactured on purpose, which is worth knowing before treating a long index chart as one measurement.
Under SEBI’s definition, the 100 largest listed Indian companies by market capitalisation.
Established, liquid, well covered. Falls least in a crash.
Weighting index constituents by their free-float market capitalisation.
An unlabelled momentum strategy — it automatically holds more of whatever has risen.
Companies ranked 101 to 250 by market capitalisation under SEBI’s classification.
Proven businesses still scaling. Meaningfully more volatile than largecaps.
An index of 50 large NSE-listed companies, weighted by free-float market capitalisation.
The default measure of "the Indian market". A weighted average, so the biggest names dominate it.
Market capitalisation divided by book value.
Only compares businesses whose value sits on the balance sheet, and only means something read alongside return on equity.
Companies ranked 251 and below by market capitalisation.
Everything else, from future compounders to shells. Thin liquidity and brutal drawdowns.
An index built on a rule other than market capitalisation.
A factor tilt in index-fund clothing. The name is marketing; the method is a published, mechanical rule you can read.
The proportion of a company’s shares an index treats as publicly available, used to scale its contribution to a free-float weighted index.
In a market with large promoter holdings this can be a small fraction, so a company’s index weight is often far below what its market capitalisation suggests. The company is big; the part the index counts is not.