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Terms starting with S

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Market Basics & Instruments

Scalping

Trading for very small price increments many times a day, holding each position for seconds to minutes.

Net Profit per Trade = Gross Price Movement Captured - Round-Trip Transaction Costs
Funds, ETFs & Index Investing

Scheme Categorisation

SEBI's framework defining standard mutual fund categories with mandated investment characteristics.

Test: the scheme's holdings satisfy the allocation and eligibility rules prescribed for its declared category qualitative
Corporate Actions, Dividends & Governance

Scheme of Arrangement

A court-supervised process under company law for restructuring a company's capital, mergers, demergers or compromises with creditors.

Test: the scheme is approved by the required majorities of shareholders and creditors and sanctioned by the National Company Law Tribunal qualitative
Indian Market, Regulation & Taxation

SCORES

SEBI's online complaint redress system, through which investors lodge and track grievances against market intermediaries.

Test: the complaint concerns a SEBI-registered intermediary or listed company and is filed on the SCORES platform after approaching the entity directly qualitative
Indian Market, Regulation & Taxation

SEBI

The Securities and Exchange Board of India, the statutory regulator of India's securities markets.

Test: the entity or activity falls within the securities market, bringing it under SEBI's registration, disclosure and enforcement powers qualitative
Indian Market, Regulation & Taxation

SEBI Act

The 1992 statute that established SEBI as a statutory body and set out its powers over the securities market.

Test: the matter falls within the Act's scope, giving SEBI powers of registration, inspection, investigation, penalty and adjudication qualitative
Market Basics & Instruments

Secondary Market

The market in which already-issued securities are traded between investors, with no money flowing to the issuer.

Test: both counterparties are investors and the issuer is not a party to the trade qualitative
Indian Market, Regulation & Taxation

Section 80C

The Income Tax Act provision allowing a deduction for specified investments and payments, capped at ₹1.5 lakh a year.

Tax Saved = Amount Invested (up to ₹1.5 lakh) x Applicable Marginal Tax Rate
Economy, Macro & Market Cycles

Sector Rotation

The tendency for different sectors to lead at different points in the economic cycle, and strategies that attempt to follow it.

Test: relative performance shifts systematically between cyclical, defensive and rate-sensitive sectors as conditions change qualitative
Funds, ETFs & Index Investing

Sectoral Fund

An equity fund that invests at least 80% of its assets in companies from a single sector.

Test: minimum 80% allocation to one defined sector, such as banking, pharmaceuticals or technology qualitative
Indian Market, Regulation & Taxation

Securities Appellate Tribunal

The statutory tribunal that hears appeals against orders of SEBI and certain other financial regulators.

Test: an appeal is filed against an order of SEBI, an exchange, a depository, the pension regulator or the insurance regulator, within the prescribed period qualitative
Indian Market, Regulation & Taxation

Securities Lending and Borrowing

An exchange-regulated mechanism through which securities are lent for a fee and returned on a set date.

Lending Fee = Lending Rate x Value of Securities Lent x (Days Lent / 365) %
Financial Statements & Accounting

Securities Premium

The reserve holding the amount received on share issues in excess of face value.

Securities Premium = (Issue Price - Face Value) x Number of Shares Issued ₹ crore
Indian Market, Regulation & Taxation

Securities Transaction Tax

A tax levied on the value of transactions in securities on Indian exchanges.

STT = Transaction Value x Applicable Rate, which differs by segment and by whether the leg is a buy or a sell %
Market Basics & Instruments

Security

A tradable financial instrument representing ownership, a creditor relationship, or a right relating to either.

Test: the instrument is transferable, is issued in standardised units, and represents ownership, debt, or a right over one of these qualitative
Financial Statements & Accounting

Segment Reporting

Disclosure of revenue, results and assets broken down by the business or geographic segments management uses to run the company.

Test: segments are reported on the basis used internally by the chief operating decision maker, above prescribed size thresholds qualitative
Market Psychology & Behavioural Finance

Self-Attribution Bias

The tendency to credit successes to one's own skill and failures to external circumstances.

Test: favourable outcomes are attributed internally and unfavourable ones externally, regardless of the actual process quality qualitative
Indian Market, Regulation & Taxation

Sensex

The BSE's benchmark index of 30 large Indian companies, weighted by free-float market capitalisation.

Index Value = (Current Free-Float Market Capitalisation of Constituents / Base Market Capitalisation) x Base Value index points
Orders, Execution & Market Structure

Settlement Cycle

The number of trading days between a trade's execution and the actual exchange of securities and money.

Settlement Date = Trade Date + N trading days, where N is 1 for the Indian T+1 equity cycle days
Market Basics & Instruments

Share

A single unit of ownership in a company, giving its holder a proportional claim on the company's profits and on whatever is left over if…

Ownership fraction = Shares Held / Total Shares Outstanding shares
Corporate Actions, Dividends & Governance

Share Buyback

A company purchasing its own shares from shareholders, reducing the share count.

Post-Buyback EPS = Net Profit / (Shares Outstanding - Shares Bought Back) ₹ crore
Financial Statements & Accounting

Share Capital

The portion of shareholders' funds representing the face value of shares issued and paid up.

Paid-Up Share Capital = Face Value per Share x Number of Shares Issued and Paid Up ₹ crore
Market Basics & Instruments

Shareholder

A person or institution that owns shares in a company and therefore holds part of its ownership.

Test: the holder's name appears in the register of members, or in a depository account holding the shares, as of the relevant record date qualitative
Financial Statements & Accounting

Shareholders' Equity

The owners' claim on the company in the accounts, equal to share capital plus accumulated reserves.

Shareholders' Equity = Share Capital + Reserves and Surplus = Total Assets - Total Liabilities ₹ crore