Equities (NSE, BSE, IPO Process)
When you buy a share of a company, you become a part-owner of that business, entitled to a proportional claim on its profits and assets.
68 pages carry this tag.
When you buy a share of a company, you become a part-owner of that business, entitled to a proportional claim on its profits and assets.
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) allow ordinary investors to own slices of commercial real estate or infrastructure...
Good analysis starts with good data. For Indian markets, the data landscape is fragmented, primary sources (exchange filings, regulatory databases, RBI, MCA) are authoritative but require navigation.
Fundamental snapshot of Nifty 50 constituents: market cap, P/E, P/B, ROE, debt to equity, and dividend yield, sortable by sector.
SEBI, NSE, and BSE regulatory circulars summarised in plain language for Indian market participants, with dates and source links.
India's benchmark stock index comprising 50 of the largest and most liquid companies listed on NSE, representing about 65% of free-float market cap.
Profit earned from selling a stock held for more than 12 months. LTCG tax rates are generally lower than STCG, encouraging long-term investing.
A portion of the company's profits distributed to shareholders. Provides regular income in addition to capital appreciation.
The original value of a share as listed in the company's books. Used to calculate dividends and for stock splits.
The individual or group who starts the company and raises capital. Promoters run the business. Their stake indicates their confidence in the company.
Top Line refers to Revenue/Sales. Bottom Line refers to Net Profit. Growth in top line shows business expansion; growth in bottom line shows efficiency.
Dividing existing shares into multiple shares to increase liquidity and reduce price per share.
Free shares given to existing shareholders based on their current holding. Rewards shareholders without cash outflow; increases liquidity.
Share prices are determined by supply and demand in the market. Reflects the market's collective valuation of the company.
Primary Market (New securities issued) and Secondary Market (Existing securities traded). Primary provides capital to companies; Secondary provides liquidity to investors.
An account used to hold shares and securities in electronic format. Mandatory for trading in Indian stock markets.
A bank deposit account that provides modest interest. Linked to trading account for fund transfer.
An account used to place buy and sell orders in the stock market. Links your bank account to the stock exchange.
PAN Card, Aadhaar (Address Proof), Bank Proof (Cancelled Cheque), Photos. KYC compliance is mandatory.
A legal record of trades executed on a given day. Proof of transaction, includes brokerage and tax details.
The date when ownership is transferred and funds are exchanged. Determines when you get money or shares.
Session from 9:00 AM to 9:15 AM to stabilize opening price. Reduces volatility at market open.
Orders placed after trading hours for the next trading day. Allows busy people to plan trades anytime.
When a stock opens significantly higher than yesterday's close. Indicates strong positive sentiment/news.
When a stock opens significantly lower than yesterday's close. Indicates negative sentiment/news.
Date when company board announces corporate actions like dividend/bonus. First public information about the benefit.
The cut-off date to determine which shareholders are eligible for dividends/bonus. You must be in the company records on this date to get benefits.
Retail (Small), HNI (High Net Worth), DII (Domestic Institutions), FII (Foreign Institutions).
Institutions that hold securities in electronic form (like a bank for shares). Safe-keep your shares.
Agent of the depository (Broker) who interacts with the investor. Investors interact with DPs, not directly with NSDL/CDSL.
Events initiated by a company that affect its shareholders. Directly impacts share price and quantity.
Total number of shares traded in a specified period. High volume with price rise indicates strong trend confirmation.
Electronic system where orders are matched automatically. Ensures transparency and speed.
Market Order (Buy at current price), Limit Order (Buy at specific price). Control over price vs execution speed.
Bullish: Expecting prices to rise. Bearish: Expecting prices to fall. Describes market trend and sentiment.
Selling shares you don't own, hoping to buy them back lower. Allows profit in falling markets.
Process to settle trades when a seller fails to deliver shares (Short Delivery). Penalizes defaulters, ensures buyer gets shares.
An order to sell automatically if price drops to a certain level to limit loss. Essential risk management tool.
Max allowed price movement in a day to check excessive volatility. Protects investors from massive single-day swings.
Studying historical price movements to predict future direction. Ideally trade with the trend.
Total value of a company's shares. Classifies companies as Large, Mid, Small Cap.
Old physical floor trading method (now replaced by electronic). Historical context.
A single trade with value > ₹10 Crore or 5 lakh shares. Indicates institutional interest.
Disclosed Quantity (show less than actual) to hide intent. Used by big players to not spook the market.
Difference between highest buy price (Bid) and lowest sell price (Ask). Lower spread = Higher liquidity.
Benchmark tracking the performance of a group of stocks. Gauge overall market health.
Indices tracking specific sectors. Track performance of specific industries.
Market cap calculated using only shares available for public trading. Used for calculating Sensex/Nifty weightage.
Promoters using their shares as collateral to take loans. High pledging is a risk; if price falls, lenders might sell.
Minimum number of shares you must buy (usually in F&O or SME IPOs). Defines minimum investment amount.
IPO: Fresh shares issued (Money to company). OFS: Existing shareholders sell (Money to seller).
Already listed company issues new shares to public. Dilutes equity but raises fresh capital.
Financial institution managing the IPO process. Ensures compliance and marketing of IPO.
The price range within which investors can bid for IPO shares. Determines the IPO valuation.
Process of discovering price by inviting bids within a price band. Most modern IPOs use this method.
Detailed document describing the company, risks, and financials for IPO. Must read before investing in IPO.
Allows companies to raise capital for growth and expansion. Engine of capital formation in economy.
Institution guaranteeing to buy unsold shares in an IPO. Ensures IPO success.
The day shares start trading on the exchange. Provides liquidity to investors.
How IPO price is finalized based on bids received. Usually set at the 'Cut-off' price where max demand exists.
Free additional shares given to existing shareholders in proportion to their holding, capitalising reserves. No cash changes hands and total value is unchanged.
An offer to existing shareholders to buy new shares, usually below the market price, in proportion to their holding. It raises fresh capital for the company.
A company repurchasing its own shares, through a tender offer or open-market purchases, reducing share count. In India buybacks are governed by SEBI regulations.
Dividing each share into several shares of lower face value. Count rises, price falls proportionately, and value is unchanged.
Overseas institutions and funds registered with SEBI to invest in Indian listed securities. Their daily buy and sell figures are published by the exchanges.
Indian institutions such as mutual funds, insurers, and pension funds investing in domestic markets. Their flows are reported daily alongside FPI numbers.
Related topics: Valuation, DCF, Relative Valuation, Cost of Capital, Financial Statements, Cash Flow, Earnings Quality, Red Flags