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840 terms · page 12 of 35


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Technical Analysis & Chart Patterns

Elliott Wave Theory

A framework proposing that price moves in repeating sequences of five waves in the direction of the trend and three against it.

Structure: impulse waves 1-2-3-4-5 in the trend direction, followed by corrective waves A-B-C, with each wave subdividing into the same structure qualitative
Funds, ETFs & Index Investing

ELSS

An equity-linked savings scheme: a diversified equity fund with a three-year lock-in that qualifies for a tax deduction.

Test: minimum 80% in equity, three-year lock-in per instalment, and eligibility under Section 80C of the Income Tax Act qualitative
Risk & Portfolio Management

Emergency Fund

Money held in safe, immediately accessible instruments to cover unexpected expenses or loss of income.

Target Emergency Fund = Monthly Essential Expenses x Number of Months of Cover Required
Corporate Actions, Dividends & Governance

Employee Stock Option

A right granted to an employee to buy company shares at a preset price after a vesting period.

Perquisite Value on Exercise = (Fair Market Value on Exercise Date - Exercise Price) x Number of Options Exercised
Market Psychology & Behavioural Finance

Endowment Effect

The tendency to value something more highly simply because one owns it.

Test: the price demanded to sell an item exceeds the price the same person would pay to buy it qualitative
Fundamental Analysis & Valuation

Enterprise Value

The value of the whole business regardless of how it is financed, equal to market capitalisation plus net debt.

Enterprise Value = Market Capitalisation + Total Debt - Cash and Cash Equivalents + Non-Controlling Interests ₹ crore
Indicators & Oscillators

Envelope Channel

Bands drawn a fixed percentage above and below a moving average.

Upper Envelope = Moving Average x (1 + Percentage); Lower Envelope = Moving Average x (1 - Percentage) %
Funds, ETFs & Index Investing

Equal-Weighted Index

An index in which every constituent carries the same weight regardless of company size.

Weight of each Constituent = 1 / Number of Constituents %
Market Basics & Instruments

Equity

The residual ownership interest in a company: what would remain for its owners once every liability had been settled.

Equity = Total Assets - Total Liabilities ₹ crore
Funds, ETFs & Index Investing

Equity Fund

A mutual fund investing at least 65% of its assets in Indian equity and equity-related instruments.

Test: minimum 65% allocation to domestic equity, which also determines the scheme's tax treatment qualitative
Risk & Portfolio Management

Equity Risk Premium

The additional return investors require for holding equities rather than the risk-free asset.

Equity Risk Premium = Expected Market Return - Risk-Free Rate %
Market Basics & Instruments

Equity Share

The ordinary ownership share of a company, carrying voting rights and a claim on profits only after every other claimant has been paid.

Payout rank: secured creditors, then unsecured creditors, then preference shares, then equity shares qualitative
Funds, ETFs & Index Investing

ETF Premium/Discount

The gap between an ETF's market price and the value of its underlying holdings.

Premium or Discount % = (Market Price - iNAV) / iNAV x 100 %
Market Psychology & Behavioural Finance

Euphoria

A state of widespread optimism in which risk is discounted and price rises are treated as normal.

Test: rising participation, leverage and new issuance combine with a narrative explaining why traditional valuation no longer applies qualitative
Derivatives, Futures & Options

European Option

An option that may be exercised only on its expiry date, not before.

Test: exercise is permitted only at expiry; the holder may still close the position by selling it in the market at any time qualitative
Fundamental Analysis & Valuation

EV to EBITDA

Enterprise value divided by EBITDA, valuing the whole business against its operating cash generation before capital charges.

EV/EBITDA = Enterprise Value / EBITDA ratio (x, times)
Fundamental Analysis & Valuation

EV to Sales

Enterprise value divided by annual revenue, a capital-structure-neutral version of the price-to-sales ratio.

EV/Sales = Enterprise Value / Annual Revenue ratio (x, times)
Technical Analysis & Chart Patterns

Evening Star

A three-candle formation of a large rising candle, a small-bodied candle, then a large falling candle closing well into the first body.

Test: candle 1 rises strongly; candle 2 has a small body above it; candle 3 falls and closes below the midpoint of candle 1's body qualitative
Risk & Portfolio Management

Event Risk

The risk that a specific identifiable occurrence causes a sudden large move in a security's price.

Test: a scheduled or plausible discrete event exists whose outcome would materially change the security's value qualitative
Corporate Actions, Dividends & Governance

Ex-Dividend Date

The first day a share trades without entitlement to a declared dividend.

Theoretical Ex-Dividend Price = Cum-Dividend Price - Dividend per Share
Financial Statements & Accounting

Exceptional Item

A gain or loss that is material and outside the ordinary course of business, disclosed separately so that underlying performance stays…

Test: the item is material in size and unusual in nature or frequency, and is therefore presented on its own line ₹ crore
Economy, Macro & Market Cycles

Exchange Rate

The price of one currency expressed in terms of another.

USD/INR = number of rupees required to buy one US dollar
Funds, ETFs & Index Investing

Exchange-Traded Fund

A fund whose units trade on a stock exchange throughout the day at market-determined prices.

Test: units are listed and traded on an exchange, with creation and redemption in large blocks by authorised participants qualitative
Funds, ETFs & Index Investing

Exit Load

A charge deducted from redemption proceeds when units are sold within a stated period of purchase.

Exit Load = Redemption Value x Load Percentage, applied if held less than the stated period %