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

Understand the meaning of popular words related to IPO.

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General Stock Market Definitions, Abbreviations, Meanings

S No Term Definition Feedback
1Auto Square off FacilitySquare 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.0
2Bonus IssueA bonus issue is a corporate action in which the company’s existing shareholders get additional shares at no extra cost.0
3BSDABasic Services Demat Account (BSDA) is a demat account type for small investors. It has lower charges in comparison to the regular demat account.1
4CustodianA custodian acts as a guard for the securities from loss or theft0
5Demat AccountA demat account helps you keep all your securities safely in electronic form.0
6Demat Account TypesDemat accounts re of two types- Normal and BSDA.0
7DerivativeA 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
8Equity TradingSelling 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
9Futures and optionsFutures and Options are derivative instruments derived from an underlying security.0
10Haircut Loan Against SharesA haircut loan against shares is the value of an asset below its market value when it is used as collateral for a loan.0
11Indexation (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
12Mutual FundA mutual fund is a financial instrument that pools shareholders' money to buy securities such as stocks, bonds, money market instruments, and other assets.0
13Off Market TransferOff-market transfer is a way of transferring shares directly between two parties without the involvement of stock exchange or clearing corporation.2
14Open offerWhen 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.2
15Pay in and payoutPayin and Payouts are the days when brokers and exchanges make payment or delivery of the securities.0
16PE ratioThe price-to-earnings ratio is the ratio of the share price of a company to its earnings per share.0
17Share BrokerShare 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
18Short sellingShort selling involves selling stocks that the trader doesn’t own.0
19Stock ExchangeAn exchange is a market where securities are traded. Stocks of both public and government-owned, companies are traded in the exchanges.0
20Stop Loss OrderStop 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.0
21T+2 days SettlementT+2 days Settlement, i.e., trade settlement will happen in T+2 days (trade date plus two days)0