General Stock Market Glossary - Definitions, Abbreviations, Terminology and Meaning

Understand the meaning of popular words related to General Stock Market.

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  • 0 Feedbacks 1. Auto Square off Facility

    Square off is a feature of trading where a trader buys or sells stocks for a day with the hope of gaining the profit. The traders should close the positions by the end of the day. Some brokers provide auto square off facility where they automatically square off the positions at the specified time.

  • 1 Feedbacks 2. BSDA

    Basic Services Demat Account (BSDA) is a demat account type for small investors. It has lower charges in comparison to the regular demat account.

  • 0 Feedbacks 3. Custodian

    A custodian acts as a guard for the securities from loss or theft

  • 0 Feedbacks 4. Demat Account

    A demat account helps you keep all your securities safely in electronic form.

  • 0 Feedbacks 5. Demat Account Types

    Demat accounts re of two types- Normal and BSDA.

  • 0 Feedbacks 6. Derivative

    A derivative is a financial instrument derived from underlying assets like stocks, currency, index, commodities, etc. They are called derivatives as they are derived from other financial instruments.

  • 0 Feedbacks 7. Equity Trading

    Selling and buying of stocks of the listed (public) companies is called Equity Trading. Equity trading is done by an investor through an authorized broker.

  • 0 Feedbacks 8. Futures and options

    Futures and Options are derivative instruments derived from an underlying security.

  • 0 Feedbacks 9. Indexation (Income Tax)

    Indexation is a technique to arrive at profit/loss on investment by considering the effect of inflation which accounts for a rise in prices, cost of goods and services, and a decrease in currency value or purchasing power of money.

  • 0 Feedbacks 10. Off Market Transfer

    Off-market transfer is a way of transferring shares directly between two parties without the involvement of stock exchange or clearing corporation.

  • 0 Feedbacks 11. Open offer

    When company A acquires a significant stake in company B, it is required to provide an opportunity to the existing shareholders of company B to sell their shares. This is referred to as an open offer.

  • 0 Feedbacks 12. Pay in and payout

    Payin and Payouts are the days when brokers and exchanges make payment or delivery of the securities.

  • 0 Feedbacks 13. PE ratio

    The price-to-earnings ratio is the ratio of the share price of a company to its earnings per share.

  • 0 Feedbacks 14. Share Broker

    Share Brokers facilitate the trading of equity, commodity, currency and derivatives etc., through a stock exchange. They are the members of the stock exchange and regulated by SEBI.

  • 0 Feedbacks 15. Short selling

    Short selling involves selling stocks that the trader doesn’t own.

  • 0 Feedbacks 16. Stock Exchange

    An exchange is a market where securities are traded. Stocks of both public and government-owned, companies are traded in the exchanges.

  • 0 Feedbacks 17. Stop Loss Order

    Stop loss is an advanced order facility that helps you sell your stock if it falls to a predefined price. It is designed to minimize losses and is used by traders who are unable to constantly track the price movement of their securities.