Stock market terms starting with A

Annual Information Statement Indian Market, Regulation & Taxation qualitative A consolidated statement from the income tax department showing financial transactions reported against a taxpayer's PAN. Test: the transaction was reported to the tax department by a bank, broker, depository, fund house or registrar against the taxpayer's PAN

Annual Report Corporate Actions, Dividends & Governance qualitative A company's yearly publication containing its audited financial statements, directors' report and governance disclosures. Test: the document contains the audited accounts, board report, management discussion and analysis, and the corporate governance report

Arbitrage Derivatives, Futures & Options ₹ Simultaneously buying and selling equivalent assets in different markets to lock in a price difference without directional risk. Test: the combined position has offsetting exposures, so the profit is fixed at inception regardless of the underlying's movement

Arbitrage Fund Funds, ETFs & Index Investing qualitative An equity-taxed fund that holds offsetting cash and futures positions, earning the basis rather than market returns. Test: every cash market holding is fully hedged by a short futures position in the same security

Aroon Indicator Indicators & Oscillators % A pair of lines measuring how recently the highest high and lowest low occurred within a lookback window. Aroon Up = ((n - periods since n-period High) / n) x 100; Aroon Down = ((n - periods since n-period Low) / n) x 100

ASBA Indian Market, Regulation & Taxation qualitative Application Supported by Blocked Amount: the mechanism by which IPO application money is blocked in the applicant's bank account rather than debited. Test: the application amount is blocked in the investor's own bank account and debited only to the extent of shares actually allotted

Ascending Triangle Technical Analysis & Chart Patterns qualitative A formation with a flat upper boundary and a rising lower boundary, so the range narrows upward toward a point. Test: two or more highs at approximately the same level, with successively higher lows converging on them

Ask Price Orders, Execution & Market Structure ₹ The lowest price a seller in the order book is currently willing to accept for a security. Best Ask = lowest sell limit price resting in the order book

Asset Allocation Risk & Portfolio Management % The division of a portfolio between asset classes such as equity, debt, gold and cash. Test: target weights are set per asset class and the portfolio is managed to those weights over time

Asset Management Company Funds, ETFs & Index Investing qualitative The SEBI-registered entity that manages a mutual fund's schemes and is paid a fee for doing so. Test: the entity holds a SEBI registration to manage mutual fund schemes on behalf of a trust, and is compensated within the expense ratio

Asset Turnover Ratio Fundamental Analysis & Valuation ratio (x, times) Revenue divided by total assets, measuring how much sales the asset base generates. Asset Turnover = Revenue / Average Total Assets

Assets Under Management Funds, ETFs & Index Investing ₹ crore The total market value of the investments a fund or manager oversees. AUM = Number of Units Outstanding x Net Asset Value per Unit

Associate Company Corporate Actions, Dividends & Governance qualitative A company in which another holds significant influence but not control, typically 20% or more of voting power. Test: the investor holds at least 20% of voting power or has significant influence without control; accounted for by the equity method

At the Money Derivatives, Futures & Options qualitative An option whose strike is at or nearest to the current price of the underlying. Test: Strike is equal to, or the listed strike closest to, the current Spot price

AT1 Bond Bonds & Fixed Income qualitative An Additional Tier 1 bond: a perpetual, subordinated bank instrument that can be written down or converted to equity to absorb losses. Test: perpetual, subordinated, with discretionary coupons and a contractual write-down or conversion trigger on a capital shortfall

Auction Settlement Orders, Execution & Market Structure ₹ The exchange process that buys shares in a special auction when a seller fails to deliver them on the settlement date. Cost to the defaulting seller = Auction Price - Original Sale Price, plus penalties, with the auction price capped at a stated band

Audit Committee Corporate Actions, Dividends & Governance qualitative A board committee, composed mainly of independent directors, that oversees financial reporting, internal controls and the auditors. Test: the committee has a majority of independent directors, an independent chair, and members with financial literacy

Auditor's Report Financial Statements & Accounting qualitative The statutory auditor's formal opinion on whether the financial statements give a true and fair view in accordance with the applicable framework. Test: the report states an unmodified, qualified, adverse or disclaimer opinion, together with any key audit matters and emphasis of matter

Authorised Participant Funds, ETFs & Index Investing qualitative An institution permitted to create and redeem ETF units directly with the fund, keeping the market price aligned with value. Test: the entity has an agreement with the fund permitting creation and redemption in creation-unit blocks

Authority Bias Market Psychology & Behavioural Finance qualitative Assigning greater weight to an opinion because of who expressed it rather than because of its evidence. Test: the persuasiveness of a claim rises with the speaker's status, independent of the reasoning offered

Auto Square-Off Orders, Execution & Market Structure qualitative The broker's automatic closing of an intraday or margin-deficient position when a cut-off time or a risk threshold is reached. Test: the broker's risk system closes the position without client instruction, on time or on a margin shortfall

Availability Bias Market Psychology & Behavioural Finance qualitative The tendency to judge probability by how easily examples come to mind rather than by actual frequency. Test: perceived likelihood tracks the vividness and recency of remembered examples rather than base rates

Average Directional Index Indicators & Oscillators ratio (x, times) An indicator measuring the strength of a directional move on a scale of 0 to 100, without indicating its direction. ADX = smoothed average of |+DI - -DI| / (+DI + -DI) x 100

Average True Range Indicators & Oscillators ₹ The average of the true range over n periods, measuring how much a security typically moves in a period. True Range = the greatest of (High - Low), |High - Previous Close| and |Low - Previous Close|; ATR = smoothed average of True Range over n periods

Terms starting with A