Browse All 840 Stock Market Terms A–Z

Dividend Trap Corporate Actions, Dividends & Governance qualitative 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

Dividend Yield Corporate Actions, Dividends & Governance % 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

Doji Technical Analysis & Chart Patterns qualitative 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%

Domestic Institutional Flows Economy, Macro & Market Cycles ₹ crore 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

Donchian Channel Indicators & Oscillators ₹ 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

Double Bottom Technical Analysis & Chart Patterns qualitative 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

Double Top Technical Analysis & Chart Patterns qualitative 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

Dow Theory Technical Analysis & Chart Patterns qualitative 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

Downside Risk Risk & Portfolio Management % 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

Downtrend Technical Analysis & Chart Patterns qualitative 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

Drawdown Risk & Portfolio Management % 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

Dunning-Kruger Effect Market Psychology & Behavioural Finance qualitative 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

DuPont Analysis Fundamental Analysis & Valuation % 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)

Duration Bonds & Fixed Income years 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

E-Voting Corporate Actions, Dividends & Governance qualitative 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

Earnings Growth Fundamental Analysis & Valuation % 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

Earnings per Share Fundamental Analysis & Valuation ₹ 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

Earnings Quality Fundamental Analysis & Valuation qualitative 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

Earnings Yield Fundamental Analysis & Valuation % 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

EBITDA Financial Statements & Accounting ₹ crore Earnings before interest, tax, depreciation and amortisation — a measure of operating profit that ignores capital structure and asset charges. EBITDA = Revenue - Operating Expenses (excluding depreciation and amortisation)

EBITDA Margin Fundamental Analysis & Valuation % EBITDA as a percentage of revenue, measuring operating profitability before depreciation, interest and tax. EBITDA Margin = EBITDA / Revenue x 100

Economic Value Added Fundamental Analysis & Valuation ₹ crore 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)

Effective Tax Rate Fundamental Analysis & Valuation % 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

Efficient Frontier Risk & Portfolio Management qualitative 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

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