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Glossary
1678 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 2 terms

Total return index

Market basics
Also called: TRI

The same index basket computed with dividends reinvested, as against the price index, which excludes them.

In plain terms

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.

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Price index

Market basics
Also called: Price return index

An index computed from the prices of its constituents alone, with dividends excluded — the series almost every headline index level quoted in India refers to.

In plain terms

The counterpart of the total return index, not another name for it. Comparing a holding that pays out against a price index charges the holding for its own dividends, and the error is the difference in the two payout rates, compounded.

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Indian stock market glossary · Market Vidyalaya