Skip to content
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 12 terms

Market capitalisation

Market basics
Also called: Market cap

Share price multiplied by the number of shares outstanding — the market’s valuation of the whole company.

In plain terms

The real measure of how big a company is. Share price alone tells you nothing.

Read the full lesson →

Enterprise value

Fundamental analysis

Market capitalisation plus total debt minus cash — the cost of acquiring the whole business.

In plain terms

What you would actually pay, including the debt you inherit.

Read the full lesson →

FCF yield

Fundamental analysis

Free cash flow divided by market capitalisation.

In plain terms

The cash return on buying the whole company. Much harder to manipulate than earnings.

Read the full lesson →

Index

Market basics

A single number summarising a basket of stocks, in India generally weighted by free-float market capitalisation.

In plain terms

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.

Read the full lesson →

Largecap

Market basics

Under SEBI’s definition, the 100 largest listed Indian companies by market capitalisation.

In plain terms

Established, liquid, well covered. Falls least in a crash.

Read the full lesson →

Market cap weighting

Market basics

Weighting index constituents by their free-float market capitalisation.

In plain terms

An unlabelled momentum strategy — it automatically holds more of whatever has risen.

Read the full lesson →

Midcap

Market basics

Companies ranked 101 to 250 by market capitalisation under SEBI’s classification.

In plain terms

Proven businesses still scaling. Meaningfully more volatile than largecaps.

Read the full lesson →

NIFTY 50

Market basics

An index of 50 large NSE-listed companies, weighted by free-float market capitalisation.

In plain terms

The default measure of "the Indian market". A weighted average, so the biggest names dominate it.

Read the full lesson →

Price to book

Fundamental analysis
Also called: P/B

Market capitalisation divided by book value.

In plain terms

Only compares businesses whose value sits on the balance sheet, and only means something read alongside return on equity.

Read the full lesson →

Smallcap

Market basics

Companies ranked 251 and below by market capitalisation.

In plain terms

Everything else, from future compounders to shells. Thin liquidity and brutal drawdowns.

Read the full lesson →

Smart beta

Technical analysis

An index built on a rule other than market capitalisation.

In plain terms

A factor tilt in index-fund clothing. The name is marketing; the method is a published, mechanical rule you can read.

Read the full lesson →

Investable weight factor

Market basics
Also called: IWF, Free-float factor

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 plain terms

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.

Read the full lesson →
Indian stock market glossary · Market Vidyalaya