Stock market terms starting with S

Speculative Income Indian Market, Regulation & Taxation ₹ Income from transactions settled without delivery, which in Indian equity markets means intraday trading. Test: the contract is settled otherwise than by actual delivery or transfer of the commodity or scrip

Spin-Off Corporate Actions, Dividends & Governance qualitative The distribution of a subsidiary's shares to a parent's shareholders, creating a separately listed company. Test: shares in the subsidiary are distributed to the parent's shareholders pro rata, without consideration

Spinning Top Technical Analysis & Chart Patterns qualitative A candlestick with a small body and long wicks on both sides, indicating a wide range that closed near the open. Test: Body is a small fraction of the range, with both Upper and Wick Lower substantial and roughly comparable

Square Off Orders, Execution & Market Structure qualitative Closing an open position by taking the opposite trade in the same quantity, leaving no net exposure. Test: net position in the security becomes zero after the offsetting trade

Stagflation Economy, Macro & Market Cycles qualitative The combination of high inflation with weak growth and rising unemployment. Test: inflation is elevated while output growth is weak or negative and unemployment is rising

Stamp Duty Indian Market, Regulation & Taxation % A duty levied on the buy side of securities transactions, at rates uniform across India since 2020. Stamp Duty = Buy-Side Transaction Value x Applicable Rate, which differs by segment

Standalone Financial Statements Financial Statements & Accounting qualitative Accounts of the parent company alone, with investments in subsidiaries carried at cost rather than consolidated. Test: subsidiaries appear as a single investment line at cost or fair value, not as line-by-line assets and liabilities

Standard Deviation Risk & Portfolio Management % A measure of how far a set of returns typically sits from their average. Standard Deviation = square root of the average of the squared deviations from the mean

State Development Loan Bonds & Fixed Income qualitative A dated security issued by an Indian state government to fund its own borrowing requirement. Test: the issuer is a state government, and the security is issued through the Reserve Bank's auction process

Status Quo Bias Market Psychology & Behavioural Finance qualitative The preference for leaving things as they are, treating inaction as safer than action. Test: the current arrangement is retained even when an alternative would be chosen if the positions were reversed

Statutory Liquidity Ratio Economy, Macro & Market Cycles % The proportion of deposits banks must hold in government securities, cash or gold. Required SLR Holdings = Net Demand and Time Liabilities x Statutory Liquidity Ratio

Stochastic Oscillator Indicators & Oscillators % An oscillator showing where the current close sits within the high-low range of the last n periods. %K = (Close - Lowest Low over n) / (Highest High over n - Lowest Low over n) x 100; %D = 3-period moving average of %K

Stochastic RSI Indicators & Oscillators ratio (x, times) The stochastic formula applied to RSI values rather than to price, showing where RSI sits within its own recent range. StochRSI = (Current RSI - Lowest RSI over n) / (Highest RSI over n - Lowest RSI over n)

Stock Exchange Market Basics & Instruments qualitative A regulated marketplace that matches buy and sell orders in listed securities and publishes the resulting prices. Test: the venue is recognised by the regulator, operates an order-matching system and publishes executed prices

Stock Futures Derivatives, Futures & Options ₹ A futures contract whose underlying is a single listed company's shares. Contract Value = Share Price x Lot Size; settlement in India is by physical delivery of the shares

Stock Split Corporate Actions, Dividends & Governance shares A division of each existing share into a larger number of shares with a proportionally lower face value. New Share Count = Old Count x Split Ratio; Adjusted Price = Old Price / Split Ratio; Face Value divides by the same ratio

Stop-Limit Order Orders, Execution & Market Structure qualitative A stop order that, once triggered, enters the book as a limit order at a stated price rather than as a market order. Test: the order carries both a trigger price and a limit price; the limit governs the worst acceptable fill

Stop-Loss Order Orders, Execution & Market Structure qualitative A resting instruction that becomes an active order only once the price reaches a stated trigger level, used to cap a loss. For a long position: trigger below the entry price; for a short position: trigger above it

Straddle Derivatives, Futures & Options ₹ Buying or writing both a call and a put at the same strike and expiry. Long Straddle Cost = Call Premium + Put Premium; Break-evens = Strike +/- Total Premium

Strangle Derivatives, Futures & Options ₹ Buying or writing a call and a put at different out-of-the-money strikes with the same expiry. Long Strangle Cost = Call Premium + Put Premium; Break-evens = Call Strike + Total Premium, and Put Strike - Total Premium

Strategic Asset Allocation Risk & Portfolio Management % A long-term target mix of asset classes based on objectives and risk capacity, held through market conditions. Test: target weights are set for the long term and changed only when circumstances change, not when markets move

Stress Testing Risk & Portfolio Management % Estimating how a portfolio would perform under specified severe but plausible adverse scenarios. Test: apply a defined set of shocks to prices, rates, spreads and correlations, and compute the resulting portfolio value

Strike Price Derivatives, Futures & Options ₹ The fixed price at which an option's holder may buy or sell the underlying if the option is exercised. Test: the strike is set by the exchange in standard intervals and does not change over the contract's life

Subordinated Debt Bonds & Fixed Income qualitative Debt that ranks behind other debt for repayment if the borrower is wound up. Repayment order: secured creditors, then senior unsecured, then subordinated, then hybrid capital, then equity

Terms starting with S