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840 terms · page 11 of 35

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Corporate Actions, Dividends & Governance

Dividend Trap

A share whose high dividend yield reflects a falling price and an unsustainable payout rather than attractive income.

Test: the yield is elevated because the price fell, and the dividend exceeds free cash flow or is funded by borrowing qualitative Corporate Actions, Dividends & Governance

Dividend Yield

The annual dividend per share expressed as a percentage of the share price.

Dividend Yield = Annual Dividend per Share / Market Price per Share x 100 % Technical Analysis & Chart Patterns

Doji

A candlestick whose open and close are at or very near the same price, producing almost no body.

Test: absolute value of (Close - Open) is a very small fraction of the period's High minus Low, conventionally under 5% qualitative Economy, Macro & Market Cycles

Domestic Institutional Flows

Net purchases or sales of Indian securities by domestic mutual funds, insurers and pension funds.

Net Flow = Value of Purchases - Value of Sales by domestic institutions over the period ₹ crore Indicators & Oscillators

Donchian Channel

Bands drawn at the highest high and lowest low of the last n periods, with a midline between them.

Upper Channel = Highest High over n periods; Lower Channel = Lowest Low over n periods; Middle = average of the two ₹ Technical Analysis & Chart Patterns

Double Bottom

Two troughs at approximately the same price separated by a peak, forming a W shape on the chart.

Test: two lows within a small percentage of each other, separated by a rally to an intervening high that is later exceeded qualitative Technical Analysis & Chart Patterns

Double Top

Two peaks at approximately the same price separated by a trough, forming an M shape on the chart.

Test: two highs within a small percentage of each other, separated by a decline to an intervening low that is later breached qualitative Technical Analysis & Chart Patterns

Dow Theory

An early framework holding that markets move in primary, secondary and minor trends, and that indices must confirm one another.

Test: a primary trend is established when successive peaks and troughs move in one direction and a second related index confirms the same direction qualitative Risk & Portfolio Management

Downside Risk

The dispersion of returns below a target level, ignoring variation above it.

Downside Deviation = square root of the average of squared shortfalls below the target return % Technical Analysis & Chart Patterns

Downtrend

A price sequence in which each significant high is below the previous high and each significant low is below the previous low.

Test: current swing high < previous swing high, and current swing low < previous swing low qualitative Risk & Portfolio Management

Drawdown

The decline in a portfolio's value from a previous peak to a subsequent trough, expressed as a percentage.

Drawdown = (Peak Value - Current Value) / Peak Value x 100 % Market Psychology & Behavioural Finance

Dunning-Kruger Effect

The tendency for people with limited competence in a domain to overestimate their ability in it.

Test: self-assessed ability is highest relative to actual ability among the least skilled, because assessing skill requires the skill itself qualitative Fundamental Analysis & Valuation

DuPont Analysis

A decomposition of return on equity into profit margin, asset turnover and financial leverage, showing what drives the return.

ROE = Net Profit Margin x Asset Turnover x Equity Multiplier = (Profit/Sales) x (Sales/Assets) x (Assets/Equity) % Bonds & Fixed Income

Duration

A measure of how sensitive a bond's price is to a change in interest rates.

Approximate Price Change % = -Modified Duration x Change in Yield in percentage points years Corporate Actions, Dividends & Governance

E-Voting

Electronic voting on shareholder resolutions, mandatory for listed companies in India.

Test: the company provides a remote electronic voting facility open for a stated period before the meeting qualitative Fundamental Analysis & Valuation

Earnings Growth

The rate at which a company's profit increases from one period to the next.

Earnings Growth = (Current Period Earnings - Prior Period Earnings) / Prior Period Earnings x 100 % Fundamental Analysis & Valuation

Earnings per Share

Net profit attributable to equity shareholders divided by the weighted average number of shares outstanding.

EPS = Profit Attributable to Equity Shareholders / Weighted Average Shares Outstanding ₹ Fundamental Analysis & Valuation

Earnings Quality

The extent to which reported profit is backed by cash, is repeatable, and reflects the underlying business rather than accounting choices.

Test: cumulative operating cash flow tracks cumulative net profit over several years, with few exceptional items and stable accounting policies qualitative Fundamental Analysis & Valuation

Earnings Yield

Earnings per share expressed as a percentage of the share price — the inverse of the price-to-earnings ratio.

Earnings Yield = Earnings per Share / Market Price per Share x 100 = 1 / P/E x 100 % Financial Statements & Accounting

EBITDA

Earnings before interest, tax, depreciation and amortisation — a measure of operating profit that ignores capital structure and asset…

EBITDA = Revenue - Operating Expenses (excluding depreciation and amortisation) ₹ crore Fundamental Analysis & Valuation

EBITDA Margin

EBITDA as a percentage of revenue, measuring operating profitability before depreciation, interest and tax.

EBITDA Margin = EBITDA / Revenue x 100 % Fundamental Analysis & Valuation

Economic Value Added

The profit a business earns above the full cost of the capital employed to produce it.

EVA = Net Operating Profit After Tax - (Invested Capital x Weighted Average Cost of Capital) ₹ crore Fundamental Analysis & Valuation

Effective Tax Rate

The tax charge in the accounts expressed as a percentage of profit before tax.

Effective Tax Rate = Total Tax Expense / Profit Before Tax x 100 % Risk & Portfolio Management

Efficient Frontier

The set of portfolios offering the highest expected return for each level of risk.

Test: no other portfolio offers a higher expected return at the same standard deviation, or the same return at a lower one qualitative