Browse All 840 Stock Market Terms A–Z

Expansion Economy, Macro & Market Cycles qualitative 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

Expectancy Risk & Portfolio Management ₹ 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)

Expense Ratio Funds, ETFs & Index Investing % 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

Expiry Date Derivatives, Futures & Options days 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

Exponential Moving Average Indicators & Oscillators ₹ 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)

Exposure Margin Derivatives, Futures & Options ₹ 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

Extraordinary General Meeting Corporate Actions, Dividends & Governance qualitative 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

Face Value Market Basics & Instruments ₹ The nominal value assigned to a share by the company at issue, used for accounting and for expressing dividends, and unrelated to what the share trades for. Paid-up Share Capital = Face Value x Number of Shares Issued

Falling Wedge Technical Analysis & Chart Patterns qualitative 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

False Breakout Technical Analysis & Chart Patterns qualitative 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

Familiarity Bias Market Psychology & Behavioural Finance qualitative Preferring investments one recognises, treating familiarity as a proxy for safety. Test: the allocation favours known names or sectors without a corresponding analytical basis

Fear Market Psychology & Behavioural Finance qualitative 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

Fear of Missing Out Market Psychology & Behavioural Finance qualitative 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

Fibonacci Extension Technical Analysis & Chart Patterns % 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%

Fibonacci Retracement Technical Analysis & Chart Patterns % 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%

Final Dividend Corporate Actions, Dividends & Governance ₹ 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

Financial Leverage Fundamental Analysis & Valuation ratio (x, times) 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

Financing Cash Flow Financial Statements & Accounting ₹ crore 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

First In, First Out Indian Market, Regulation & Taxation qualitative 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

Fiscal Deficit Economy, Macro & Market Cycles % 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)

Fiscal Policy Economy, Macro & Market Cycles % 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

Flag Pattern Technical Analysis & Chart Patterns qualitative 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

Flexi-Cap Fund Funds, ETFs & Index Investing qualitative 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

Floating-Rate Bond Bonds & Fixed Income % A bond whose coupon resets periodically against a reference rate rather than staying fixed. Coupon = Reference Rate at Reset + Fixed Spread

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