DEMAT

Short form “Dematerialization” of the process of conversion of physical stock document into an electronic document.
 
Digital Contracts

Same as Demat. The shares are held in electronic records.

Dividend

Out of the company's earnings some part of cash may be paid to the share holders of the company, this may be an interim dividend or a final dividend.
 
Dividend Yield

The dividend paid on a share expressed as a percentage of its market price.

Earnings

The profit after tax of the company is indicated as earnings.

Earnings Per Share

It is a value indicating the profit after tax divided by the weighted average number of shares in issue.

EBIT (Earnings before Interest & Tax)

EBIT is the profit or earnings of a company, before taking into account interest, tax and dividends. EBIT is often known as operating profit or PBIT (profit before interest and tax).

EGM

Extraordinary General Meeting.

Equity

The equity in a company is the capital put in by the shareholders plus the profits retained in the business on their behalf. Alternatively, equity can be regarded as the assets minus the liabilities i.e. what is left after the assets have been used to repay the liabilities. The term is also used to refer to shares.

Ex-dividend

It is an opposite term of cum-dividend, that means the buyer will not have the rights on the bonus or dividend. The seller retains the benefits.

F&O - Futures and Options.

FCD - Fully Convertible Debenture.

FDI - Foreign Direct Investment.

FII - Foreign Institutional Investors.

GDP - Gross Domestic Product.

GDR - Global Depository Receipt.

Initial Public Offering

Initial Public Offering or IPO is when shares in a company are offered to outside investors for the first time and simultaneously the company arranges to have its shares listed on a recognized stock exchange. This is also known as flotation.

Institutional investor

Large financial institutions such as pension funds, unit or investment trusts and insurance companies.

Interim results

Unaudited first half figures that provide an indication of the company's trading and profit performance since the last full year accounting period. These figures are reviewed by the Auditors.

IPO

The IPO or Initial Public Offering is when shares in a company are offered to outside investors for the first time and simultaneously the company arranges to have its shares listed on a recognized stock exchange. This is also known as flotation.

SHARE MARKET GLOSSARY

Sharetips4u.info