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 69 terms
An option giving its buyer the right, but not the obligation, to sell the underlying at a set price up to expiry.
Bought either to profit from a fall or to insure a holding against one. The gain is large but capped, because a price cannot go below zero.
Open interest in puts divided by open interest in calls, read contrarily as a gauge of crowd positioning.
Open interest does not record intent. Heavy put positioning is often institutions selling puts at a strike they are happy to buy at — bullish positioning that a naive reading reports as fear.
Online Dispute Resolution — the online route for conciliation and then arbitration of an investor's dispute with a market intermediary.
The stage after SCORES and before the courts. Binding, far cheaper than litigation, and it exists precisely because a civil suit is not a realistic remedy for a ₹40,000 dispute.
The process for correcting a wrong entry in a credit information report, under which the lender is asked to verify and the regulator has set periods for resolution.
It fixes a wrong entry, not a correct entry you dislike. The bureau reports what the lender supplies, so a real dispute is won against the lender.
The rent an owner-occupier implicitly pays themselves by living in a property they own.
The money you are not paying a landlord. It is a real benefit of owning and it never shows up in a bank statement.
An unscripted question put to management during an earnings call.
When three analysts ask the same thing, either it matters or the first two answers were poor.
VWAP computed from a chosen starting bar rather than from the session open.
The average price everyone has paid since an event. Above it, they are in profit; below it, they are not.
A binding dispute-resolution stage reached through the online dispute resolution mechanism once conciliation has failed.
Binding, far cheaper than court, and measured in months where a civil suit is measured in years. What it runs on is the paper trail you kept.
The financial-year statement a broker produces listing every sale, split into short-term and long-term with the cost basis already computed.
Your primary source at filing time and usually a two-click download. Reconcile it against the AIS before you submit anything.
The maximum price at which a scheduled formulation may be sold, computed by the National Pharmaceutical Pricing Authority as the simple average of the prices to retailer of brands above a 1% share of that formulation, plus a notified 16% retailer margin.
It is revised annually against the wholesale price index — an index with no connection to what the company paid for its active ingredient. That asymmetry is the whole structural feature of price control.
An obligation that may arise depending on a future event — tax disputes, guarantees, litigation.
Not on the balance sheet. If the total exceeds net worth, a material risk is hiding in a footnote.
What you actually paid for an asset, used with the date of acquisition to compute the gain when it is sold.
Not held by the depository and invisible to a new broker. Moving accounts changes nothing about it and everything about who can prove it — which is why the old statements are what you take with you.
The commodity India imports the large majority of and pays for in dollars, making its price an input into inflation, the trade deficit and the rupee at once.
The loop is the point: a spike widens the deficit, which weakens the rupee, which makes the same oil dearer in rupee terms. It hurts paints, tyres, airlines and logistics, and helps upstream producers.
The amount actually available under a working capital limit at a point in time, recomputed against stock and receivables after prescribed margins.
It is why a sanctioned limit contracts exactly when the business contracts. The ceiling stays where it was and the money that can be drawn against it falls with the inventory and the debtors.
The allowance a lender carries against a loan from the day it is written, computed as the probability of default multiplied by the loss if default happens, applied to the exposure at that point.
A model output, not a measurement. Two lenders with the same borrowers can carry materially different numbers and both be perfectly compliant, which is why the notes also compare it with the regulator’s formula.
Interest computed on the original amount borrowed for the whole tenure, regardless of how much principal has already been repaid.
Rent on rooms you have already handed back. For a fully repaid term loan a flat rate is close to double itself once converted to a reducing basis — before fees.
The percentage deducted from the value of pledged collateral when computing available margin.
Pledge ₹1,00,000 with a 20% haircut and you get ₹80,000 of margin. Haircuts widen exactly when markets get volatile.
The financial or reputational reward shaping what a source produces and emphasises.
Free content is paid for by someone. Working out who, and for what, explains most of what you are shown.
The value of an exchange-traded fund’s underlying basket, computed and disseminated at short intervals during the session, as distinct from the price its units are changing hands at.
An ETF has two prices at once and your chart draws only the traded one. Comparing the two is the fastest way to tell whether a wick was information or a dislocation.
The extent to which a company can pass rising input costs on to customers.
A cost spike is a free experiment. Margins hold if there is pricing power, compress if there is not.
The maximum output a company’s plants are rated to produce over a period, disclosed in units rather than rupees.
The ceiling on volume growth without fresh capital expenditure. Set beside actual production it gives capacity utilisation, and beside industry-wide additions it tells you what supply is coming.
The offer an acquirer must make to public shareholders on crossing the shareholding thresholds prescribed in the takeover regulations, or on acquiring control, at a price computed under those regulations, unless an exemption applies.
It is for a stated proportion of the shares rather than all of them, so it is not a floor under your whole holding. Where the computed price lands above the market the price tends to sit just under it and the daily range flattens; where it lands below, almost nobody tenders and the chart is unaffected.
A contract giving the right, but not the obligation, to buy (call) or sell (put) at a set price.
Buyers risk only the premium. Sellers take limited gain for potentially very large loss.
A spot price computed by surveying physical market participants at a designated delivery centre under a published methodology, rather than from an order book.
It is a survey taken once or twice a day, not a continuously traded series. Reading a divergence between it and the futures as though both were live prices misreads what one of the two numbers is.
The headline figure of the fund liquidity stress test — the days needed to sell 25% and then 50% of the portfolio, computed pro-rata against trailing traded volumes.
Driven mostly by fund size measured against the volumes of what it owns, so the numbers cluster by size rather than by skill. The least liquid fifth of the portfolio is excluded before the figure is calculated, which is the single most important thing to know about it.
The 9:00–9:15 window in which the NSE collects orders and computes a single opening price.
Orders collect until 9:08, match until 9:12, and everyone who trades gets the same equilibrium price.
Interest computed each period on the principal still outstanding, so the interest component falls as the loan is repaid.
The only basis on which two loan quotes can be compared. A quote that does not say which basis it uses is not yet a quote.
The share of profits a company puts back into the business rather than distributing.
Sustainable growth is roughly incremental return multiplied by this. A high return with nowhere to deploy it is worth little.
How well a strategy holds up when its inputs, period or ordering are changed.
A rule that only works on the stock and window you found it on is not robust — it is a coincidence with a story attached.
Returns computed from every possible start date rather than one fixed window.
Far more honest than a since-inception figure, which usually includes a first year nobody can access now.
India's currency, whose exchange rate against the dollar is itself an input into what listed companies earn.
A weaker rupee helps IT and pharma exporters and hurts importers, airlines and anyone paying for crude in dollars.
The core initial margin on a derivatives position, computed as the worst single-day loss across a grid of simulated price and volatility scenarios.
It rises when volatility rises, which is precisely the day the position is losing money. The margin call and the loss are correlated by design, and that correlation is what turns a bad session into a forced exit.
Dependence on one vendor or input with no ready substitute.
The mirror image of customer concentration, and disclosed far less clearly.
The same index basket computed with dividends reinvested, as against the price index, which excludes them.
Over weeks the difference is invisible; over a decade it is two different-looking charts. Any statement that “the index went nowhere” is being made on the series that throws the dividends away.
The Schedule III note splitting trade payables by period outstanding from the due date, and separately between micro and small enterprise creditors and others, with disputed dues shown apart.
The disclosure that turns one balance into a story. Bargaining power keeps almost everything inside a year; a filling one-to-two-year bucket suggests the terms were taken rather than agreed.
A cost that rises and falls broadly in proportion to output or sales.
Raw materials and freight. Double the sales, double the spend, and the margin barely moves.
A price series restated for splits, bonuses and other corporate actions.
Without it, a bonus looks like a 50% crash and every indicator computed across it is nonsense.
The instalment-by-instalment split of a loan repayment between interest and principal across its full tenure.
Early instalments are almost all interest because interest is charged on the outstanding balance. Restarting the tenure puts you back at the interest-heavy end.
An institution allotted shares in a public issue a day before it opens to everyone else, at a price fixed in advance.
Read the names, not the amount. Reputable long-only funds anchoring a book is meaningful; a book made up of unfamiliar entities is not.
The minimum value per unit area notified by a state government for property transactions in a locality.
Stamp duty is charged on the higher of the documented price and this notified value, and the income tax provisions for immovable property key off the same figure — so in a weak local market duty and tax can be computed on a price nobody is actually paying.
Cost of goods sold — the direct cost of producing what was actually sold in the period.
Revenue minus this is gross profit, the purest read on pricing power. Rising faster than revenue means input costs are not being passed on.
Restating historical per-share figures for bonus issues, splits, rights issues and similar events so that a per-share series remains continuous.
Bonuses and splits divide by a simple factor. A rights issue priced below the market contains an element of bonus, so it needs a computed factor rather than a divisor.
Consumer price inflation, published monthly; the RBI targets 4% with a 2–6% band.
Above the band the RBI raises rates, and that is the channel that reaches your portfolio. Consumer companies take a second hit through input costs they cannot always pass on.
Discounted Cash Flow — valuing a business as the present value of its projected future cash flows.
Its real output is a range and a set of stated assumptions, never a target price.
A shared understanding among relatives about an indivisible asset.
Have the conversation before acting. Silent assumptions turn a shared inheritance into a decade-long dispute.
The assumption that a company will continue operating for the foreseeable future, on which the accounts are prepared; where material doubt exists, the auditor reports it.
A paragraph on material uncertainty relating to going concern is an auditor putting the fragility in writing, in a signed document. It is not a prediction of failure, and it is not an item to skim past either.
Compulsory registration under the Goods and Services Tax above a turnover threshold, or immediately in certain interstate cases.
Registering voluntarily lets you claim input credit and commits you to periodic returns permanently.
The condition in which several indicators appear to confirm one another while being different arrangements of the same underlying price data.
RSI, Stochastic, Williams %R, CCI and the MACD histogram all agreeing is one opinion reported five times. New information has to come from a different input — volume, breadth, relative strength.
A SEBI-registered agency that holds an investor’s KYC record centrally, keyed on the PAN, and shares it with other intermediaries.
Five of them share records between themselves, which is why a second broker did not put you through the whole process again — and why one deficient record can block a fresh purchase everywhere at once. The status is free to check with nothing but a PAN.
Potential loss from legal claims against a company.
Read what the cases are about. A product liability claim implies something structural; a commercial dispute usually does not.
A cap set by the exchange on the aggregate derivatives open interest permitted in a single stock, expressed as a number of shares.
It stops the derivatives tail growing large enough to wag the cash market. The basis on which it is computed has been revised, so read the current circular for the formula — what has not changed is that the names reaching the ceiling are overwhelmingly midcaps with concentrated promoter holdings and thin deliverable float.
The share of a subsidiary’s profit belonging to other shareholders.
Compute per-share figures after deducting it, or you overstate earnings.
A tariff determined by an electricity regulatory commission for a control period spanning several years rather than annually.
It puts the next revision on a published calendar, with draft regulations and objections available months before the order. Between control periods the risk is not demand — it is that a cost is disallowed or the permitted return is trimmed.
Foreign currency revenue and costs that offset each other.
An exporter who also imports most inputs has far less net exposure than its revenue suggests.
Adjusting reported figures so two companies can be compared fairly.
Recompute both at the statutory tax rate, strip one-offs, and add guarantees to debt.
The strike-by-strike table of open interest, change in open interest, volume and implied volatility for an underlying's options, published live and free by the NSE.
The strike with the largest call open interest often acts as resistance and the largest put strike as support, because writers hedging those positions generate real buying and selling. One source of confluence, not a forecast.
A trading mode in which orders collect through a window and match at a single price at the end of it, instead of matching continuously.
There is no live bid-ask to work against — you place an order and learn afterwards what it did. That is precisely why illiquid and surveillance-bound securities are the ones put into it.
A pre-defined level at which a position will be closed for profit.
Compute it before entering. Its job is deciding whether to take the trade at all.
The return on equity a regulator permits an asset to earn, built into the allowed revenue alongside approved capital cost, depreciation, operations and maintenance and interest.
The commission sets a return rather than a price, so the analysis moves to the allowance and the disallowances. Regulatory lag is where the margin actually goes: between an input cost rising and a tariff order recognising it, the company funds the gap itself.
Comparing two returns only after accounting for the certainty, the tax treatment and the horizon attached to each.
Put both after tax and the gap is usually far narrower than the headline version suggests. Which tax regime you are on moves the hurdle by points, not decimals.
Earners supporting both parents and children at the same time.
One candle, two rooms. Put the support in the plan as a line item rather than hoping it fits.
Building a position in several tranches rather than in one order.
Each tranche is its own sizing problem, computed from the current stop rather than the original one.
Re-running a valuation across a range of growth and discount-rate assumptions to see how far the answer moves.
The output is a spread rather than a figure, and the spread is the honest answer. A DCF quoted to the rupee is a claim the model cannot support.
A quoted price carried forward from an earlier trade because the security has not traded since, so the figure describes a moment that may be hours or days old.
The last traded price is exactly that and nothing more. On a thin name the number on your screen on Friday can be Tuesday’s, and every percentage you compute against it inherits the age.
A statistical measure of how widely a series is dispersed around its own average; Bollinger Bands sit two of them either side of a 20-day mean.
It is recomputed every session, which is why the bands widen when a stock turns volatile and contract when it goes quiet. Touching a band means statistically unusual, never expensive.
Systematic Transfer Plan — moving a fixed amount from one fund to another at intervals.
The sensible way to deploy a lumpsum into equity instead of putting it all in on one day.
Motor cover for death, injury or property damage caused to somebody else — compulsory by statute for every vehicle on a public road.
For death and injury there is no ceiling: the award is computed from the deceased’s earnings, prospects, dependants and age, and has nothing to do with the value of your car. Lapse it and that award is enforced against you.
The collapse in an option’s premium after a scheduled event, as the expected volatility the price was carrying resolves into a known outcome.
It is why you can be right about the direction of the underlying and still lose on the option. The input that moved is not visible anywhere on the premium chart.
The number of shares traded in a given period.
The only widely used input that is not derived from price, which makes it worth more than the four oscillators sitting under your chart. A breakout without a volume surge is a suspect breakout.