Liquidity

It is referred as the average number of a company's shares available to be freely traded on the share market.

Listed company

A listed company is one whose shares are listed on a stock exchange.

Margin money

Minimum money required to buy shares during intraday or futures contract.

Market Capitalisation

The market capitalisation or shortly known as the market cap of a company is the current share price multiplied by the number of shares in issue.

MF - Mutual Fund. Please refer Mutual Fund page in this website for more details.

NSDL - National Securities Depository Limited.

NSE - National Stock Exchange.

Offer Price

The price at which shares may be sold in the Market. The offer price varies as per the demand in the market.

Open interest

Open interest is defined as the total number of futures contracts or option contracts that have not yet been exercised, expired, or fulfilled by delivery. If the open interest crosses 95% of the market-wide position ( the number of shares available in the cash market ) then stock exchange system will impose a ban on fresh positions in F & O segment.

Operating margin

Operating profit as a percentage of the company's turnover or sales.

Operating Profit

Operating profit is the profit that the company makes, before taking into account interest, tax and dividends. Operating profit is also known as EBIT (earnings before interest and tax) or PBIT (profit before interest and tax).

Option

An option gives the holder the right, but not the obligation, to buy or sell a specified amount of an asset, probably ordinary shares, at a specified price within a specific time period.

PAN - Permanent Account Number.

PCD - Partly Convertible Debenture.

PBIT

PBIT is the profit that the company makes, before taking into account interest, tax and dividends. PBIT is also known as operating profit and EBIT (earnings before interest and tax).

P/E Ratio

The price/earnings ratio. Higher the P/E ratio indicates that every thing is moving well and share holders are after this stock. P/E ratio serves as an indicator for the investor to make a purchase decision.

P & L

The profit and loss account of the company.

P N ( Participatory Notes )

PNs are participatory notes or the financial instruments used by FIIs ( foreign investors ) that are not registered with Security Exchange Board of India, to invest in Indian capital market. FIIs and their sub-accounts buy Indian securities and then issue PNs to foreign investors with these securities as the underlying.

Profit Before Tax

Profit before tax is the profit of a company after adding or deducting interest, but before deduction of corporation tax.

Proxy

A person who is authorized by the share holder to attend the AGM etc., the proxy need not be a share holder of the company.

SHARE MARKET GLOSSARY

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