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840 terms · page 13 of 35

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Economy, Macro & Market Cycles

Expansion

The phase of the business cycle in which output, employment and incomes are rising.

Test: real GDP, employment and industrial production are rising on a sustained basis from a prior trough qualitative Risk & Portfolio Management

Expectancy

The average result per trade of a strategy, combining win rate with the sizes of wins and losses.

Expectancy = (Win Rate x Average Win) - (Loss Rate x Average Loss) ₹ Funds, ETFs & Index Investing

Expense Ratio

The annual cost of running a fund, expressed as a percentage of its assets and deducted from the NAV.

Expense Ratio = Total Annual Costs / Average Assets Under Management x 100 % Derivatives, Futures & Options

Expiry Date

The date on which a derivative contract ceases to exist and is settled.

Test: the contract's rights and obligations terminate at the close of the stated expiry day, with settlement at the closing reference price days Indicators & Oscillators

Exponential Moving Average

A moving average that weights recent periods more heavily, with weights decaying geometrically into the past.

EMA = Price x k + Previous EMA x (1 - k), where k = 2 / (n + 1) ₹ Derivatives, Futures & Options

Exposure Margin

An additional margin charged on top of SPAN margin as a buffer against risks the scenario model does not capture.

Exposure Margin = a prescribed percentage of contract value, or a multiple of the underlying's volatility, whichever the exchange specifies ₹ Corporate Actions, Dividends & Governance

Extraordinary General Meeting

Any general meeting of shareholders other than the annual general meeting, called to decide urgent business.

Test: the meeting is convened by the board, or on requisition by members holding at least one-tenth of the paid-up capital carrying voting rights qualitative Market Basics & Instruments

Face Value

The nominal value assigned to a share by the company at issue, used for accounting and for expressing dividends, and unrelated to what the…

Paid-up Share Capital = Face Value x Number of Shares Issued ₹ Technical Analysis & Chart Patterns

Falling Wedge

A formation in which both boundaries slope downward but converge, with the upper boundary falling more steeply than the lower.

Test: lower highs and lower lows, with the line through the highs falling faster than the line through the lows qualitative Technical Analysis & Chart Patterns

False Breakout

A move beyond a defined level that reverses back into the prior range shortly afterwards.

Test: price breaches the level and then closes back inside the range within a stated number of periods qualitative Market Psychology & Behavioural Finance

Familiarity Bias

Preferring investments one recognises, treating familiarity as a proxy for safety.

Test: the allocation favours known names or sectors without a corresponding analytical basis qualitative Market Psychology & Behavioural Finance

Fear

The emotional response to potential loss that leads investors to reduce exposure or avoid it entirely.

Test: exposure is reduced or avoided on the basis of recent price movement rather than on a changed assessment of the asset qualitative Market Psychology & Behavioural Finance

Fear of Missing Out

The anxiety of being left out of a rise that others are participating in, leading to purchases made without analysis.

Test: the decision to buy is triggered by others' gains rather than by any assessment of the asset's value qualitative Technical Analysis & Chart Patterns

Fibonacci Extension

Levels projected beyond a prior move at set multiples of its size, used to mark possible areas where an advance may pause.

Extension Level = Retracement Low + (High - Low) x Ratio, where common ratios are 127.2%, 161.8%, 200% and 261.8% % Technical Analysis & Chart Patterns

Fibonacci Retracement

Horizontal levels drawn at set percentages of a prior price move, used to mark potential areas where a pullback may pause.

Retracement Level = High - (High - Low) x Ratio, where common ratios are 23.6%, 38.2%, 50%, 61.8% and 78.6% % Corporate Actions, Dividends & Governance

Final Dividend

A dividend recommended by the board after the year's accounts are prepared and approved by shareholders at the annual general meeting.

Test: the dividend is recommended with the annual results and requires an ordinary resolution at the annual general meeting ₹ Fundamental Analysis & Valuation

Financial Leverage

The use of borrowed money to increase the return on shareholders' capital, and the risk that comes with it.

Equity Multiplier = Total Assets / Shareholders' Equity; Degree of Financial Leverage = Percentage Change in Net Profit / Percentage Change in Operating Profit ratio (x, times) Financial Statements & Accounting

Financing Cash Flow

The net cash raised from or returned to providers of capital through borrowing, share issues, dividends and buybacks.

Financing Cash Flow = Borrowings Raised + Share Issues - Borrowings Repaid - Dividends Paid - Buybacks - Interest Paid ₹ crore Indian Market, Regulation & Taxation

First In, First Out

The convention that the earliest-acquired units of a security are treated as sold first.

Test: on a partial sale, the cost and holding period of the oldest lot are used first, then the next oldest qualitative Economy, Macro & Market Cycles

Fiscal Deficit

The gap between the government's total expenditure and its total revenue excluding borrowings, in a year.

Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-Debt Capital Receipts) % Economy, Macro & Market Cycles

Fiscal Policy

The government's use of taxation and spending to influence economic activity.

Fiscal Impulse = Change in the Fiscal Deficit as a percentage of GDP, adjusted for the cycle % Technical Analysis & Chart Patterns

Flag Pattern

A short, shallow consolidation in a small parallel channel that slopes against the direction of a sharp preceding move.

Test: a steep prior move, followed by a brief parallel-sided consolidation retracing only a small portion of it qualitative Funds, ETFs & Index Investing

Flexi-Cap Fund

An equity fund free to invest across large, mid and small-cap companies in any proportion.

Test: minimum 65% in equity with no mandated split across market capitalisation segments qualitative Bonds & Fixed Income

Floating-Rate Bond

A bond whose coupon resets periodically against a reference rate rather than staying fixed.

Coupon = Reference Rate at Reset + Fixed Spread %