Browse All 840 Stock Market Terms A–Z

Elliott Wave Theory Technical Analysis & Chart Patterns qualitative 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

ELSS Funds, ETFs & Index Investing qualitative 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

Emergency Fund Risk & Portfolio Management ₹ 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

Employee Stock Option Corporate Actions, Dividends & Governance ₹ 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

Endowment Effect Market Psychology & Behavioural Finance qualitative 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

Enterprise Value Fundamental Analysis & Valuation ₹ crore 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

Envelope Channel Indicators & Oscillators % 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)

Equal-Weighted Index Funds, ETFs & Index Investing % An index in which every constituent carries the same weight regardless of company size. Weight of each Constituent = 1 / Number of Constituents

Equity Market Basics & Instruments ₹ crore The residual ownership interest in a company: what would remain for its owners once every liability had been settled. Equity = Total Assets - Total Liabilities

Equity Fund Funds, ETFs & Index Investing qualitative 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

Equity Risk Premium Risk & Portfolio Management % The additional return investors require for holding equities rather than the risk-free asset. Equity Risk Premium = Expected Market Return - Risk-Free Rate

Equity Share Market Basics & Instruments qualitative 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

ETF Premium/Discount Funds, ETFs & Index Investing % The gap between an ETF's market price and the value of its underlying holdings. Premium or Discount % = (Market Price - iNAV) / iNAV x 100

Euphoria Market Psychology & Behavioural Finance qualitative 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

European Option Derivatives, Futures & Options qualitative 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

EV to EBITDA Fundamental Analysis & Valuation ratio (x, times) Enterprise value divided by EBITDA, valuing the whole business against its operating cash generation before capital charges. EV/EBITDA = Enterprise Value / EBITDA

EV to Sales Fundamental Analysis & Valuation ratio (x, times) Enterprise value divided by annual revenue, a capital-structure-neutral version of the price-to-sales ratio. EV/Sales = Enterprise Value / Annual Revenue

Evening Star Technical Analysis & Chart Patterns qualitative 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

Event Risk Risk & Portfolio Management qualitative 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

Ex-Dividend Date Corporate Actions, Dividends & Governance ₹ The first day a share trades without entitlement to a declared dividend. Theoretical Ex-Dividend Price = Cum-Dividend Price - Dividend per Share

Exceptional Item Financial Statements & Accounting ₹ crore A gain or loss that is material and outside the ordinary course of business, disclosed separately so that underlying performance stays visible. Test: the item is material in size and unusual in nature or frequency, and is therefore presented on its own line

Exchange Rate Economy, Macro & Market Cycles ₹ The price of one currency expressed in terms of another. USD/INR = number of rupees required to buy one US dollar

Exchange-Traded Fund Funds, ETFs & Index Investing qualitative 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

Exit Load Funds, ETFs & Index Investing % 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

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