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 5 terms

Shares outstanding

Fundamental analysis
Also called: Outstanding shares, Share count, Number of shares

The total number of shares a company has issued and that are currently in existence, promoter-held and public alike.

In plain terms

The number that turns a share price into a company size, and turns your holding into a fraction of the business. Without it a price means nothing.

Read the full lesson →

Book value per share

Fundamental analysis
Also called: BVPS

Net worth divided by the number of shares outstanding.

In plain terms

The anchor of a lender’s valuation, because its assets are financial and its return is earned on the capital base. For a business whose value sits in brands or people it says very little.

Read the full lesson →

EPS

Accounting

Earnings per share — net profit divided by shares outstanding.

In plain terms

Can rise from buybacks alone. Always check net profit rose too.

Read the full lesson →

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 →

Weighted average share count

Accounting
Also called: Weighted average number of shares

The number of shares outstanding over a period, weighted by the portion of the period each was outstanding — the denominator of earnings per share.

In plain terms

It is why four quarterly earnings-per-share figures do not add up to the annual one when shares were issued mid-year. Build a trailing figure from profit, then divide once.

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