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1492 terms

Glossary

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 4 terms

Face value

Market basics
Also called: Par value, Nominal value

The nominal value assigned to a share in the company’s capital accounts, commonly ₹10, ₹5, ₹2 or ₹1 in India.

In plain terms

A bookkeeping figure with no relation to what the share is worth. Dividend percentages are declared against it, which is how a "300% dividend" turns out to be ₹6.

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Bond

Market basics

A tradeable loan on which the issuer pays a fixed coupon for a defined term and returns the face value at maturity.

In plain terms

Because the coupon is fixed, the price is what has to move to keep the bond competitive with what new borrowers are paying. That seesaw is why debt funds bought for safety can lose money in a rate-hiking cycle.

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Coupon

Market basics

The fixed periodic interest a bond pays, expressed as a percentage of its face value.

In plain terms

Not your return. Buy above face value and the premium is a loss spread across the holding period, which yield to maturity captures and the coupon does not.

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Stock split

Market basics

Division of a share’s face value, increasing the share count and reducing the price proportionally.

In plain terms

Same as a bonus in effect, different in accounting. Also creates nothing.

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Indian stock market glossary · Market Vidyalaya