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840 terms · page 14 of 35
Follow-on Public Offer
Market Basics & Instruments
qualitative
A public issue of shares by a company that is already listed, made after its initial public offering.
Test: the issuer is already listed and is offering further shares to the public at large
Foreign Exchange Reserves
Economy, Macro & Market Cycles
₹ crore
Foreign currency assets, gold and reserve positions held by a central bank to meet external obligations and manage the currency.
Import Cover = Foreign Exchange Reserves / Average Monthly Imports, expressed in months
Foreign Institutional Flows
Economy, Macro & Market Cycles
₹ crore
Net purchases or sales of Indian securities by foreign portfolio investors.
Net Flow = Value of Purchases - Value of Sales by foreign portfolio investors over the period
Foreign Portfolio Investor
Indian Market, Regulation & Taxation
qualitative
A non-resident investor registered with SEBI to invest in Indian securities markets.
Test: the entity holds a SEBI FPI registration in the applicable category and invests within prescribed limits
Forward Contract
Derivatives, Futures & Options
qualitative
A privately negotiated agreement to buy or sell an asset at a set price on a future date, not traded on an exchange.
Test: terms are bilaterally negotiated, the contract is not exchange-traded, and settlement occurs directly between the parties
Forward Price-to-Earnings
Fundamental Analysis & Valuation
ratio (x, times)
The price-to-earnings ratio computed using forecast earnings for a future period rather than reported ones.
Forward P/E = Current Market Price / Estimated Earnings per Share for the Forecast Period
Framing Effect
Market Psychology & Behavioural Finance
qualitative
The tendency for a decision to change depending on how the identical information is presented.
Test: preferences reverse when the same outcome is described as a gain rather than as a loss, or in different units
Free Cash Flow
Financial Statements & Accounting
₹ crore
The cash a business generates after funding the capital expenditure needed to maintain and grow its asset base.
Free Cash Flow = Operating Cash Flow - Capital Expenditure
Free Cash Flow to Equity
Fundamental Analysis & Valuation
₹ crore
The cash available to shareholders after operating costs, capital expenditure, debt interest and net debt movements.
FCFE = Free Cash Flow to Firm - Interest x (1 - Tax Rate) + Net New Borrowing
Free Cash Flow to Firm
Fundamental Analysis & Valuation
₹ crore
The cash generated by operations available to all capital providers, before any payments to lenders or shareholders.
FCFF = EBIT x (1 - Tax Rate) + Depreciation and Amortisation - Capital Expenditure - Increase in Working Capital
Free Cash Flow Yield
Fundamental Analysis & Valuation
%
Free cash flow expressed as a percentage of market capitalisation or enterprise value.
Free Cash Flow Yield = Free Cash Flow / Market Capitalisation x 100
Free Float
Market Basics & Instruments
shares
The portion of a company's shares that is actually available for public trading, excluding promoter, strategic and locked-in holdings.
Free Float = Total Shares Outstanding - Promoter Holding - Strategic and Locked-in Holdings
Free-Float Market Capitalisation
Market Basics & Instruments
₹ crore
The market value of only those shares available for public trading, used to weight constituents in Indian indices.
Free-Float Market Capitalisation = Market Price x Free Float Shares
Front Running
Indian Market, Regulation & Taxation
qualitative
Trading ahead of a known large order to profit from the price movement that order will cause.
Test: a person with knowledge of an impending substantial order transacts in the same security before that order is executed
Fund Manager
Funds, ETFs & Index Investing
qualitative
The individual responsible for making investment decisions within a scheme's mandate.
Test: the named person holds discretion over security selection within the limits set by the scheme document and by regulation
Fund of Funds
Funds, ETFs & Index Investing
%
A mutual fund that invests in units of other funds rather than directly in securities.
Total Cost = Fund of Funds Expense Ratio + Weighted Average Expense Ratio of the Underlying Funds
Fundamental Analysis
Fundamental Analysis & Valuation
qualitative
The study of a company's financial statements, industry and economics in order to estimate what its shares are worth.
Test: the conclusion rests on the issuer's business economics rather than on the behaviour of its price
Futures Contract
Derivatives, Futures & Options
₹
A standardised exchange-traded agreement to buy or sell an underlying asset at a set price on a set future date.
Contract Value = Futures Price x Lot Size; Profit or Loss = (Exit Price - Entry Price) x Lot Size, sign adjusted for direction
Gambler's Fallacy
Market Psychology & Behavioural Finance
qualitative
The belief that an independent random outcome is due to reverse after a run in one direction.
Test: the predicted probability of the next outcome changes on the basis of prior independent outcomes
Gamma
Derivatives, Futures & Options
ratio (x, times)
The rate at which an option's delta changes for a one-unit change in the underlying.
Gamma = Change in Delta / Change in Underlying Price
Gap
Technical Analysis & Chart Patterns
%
A discontinuity on a chart where a period's entire range lies away from the previous period's range, with no trading in between.
Gap % = (Current Open - Previous Close) / Previous Close x 100
Gap Down
Technical Analysis & Chart Patterns
%
An opening price below the previous period's low, leaving an unfilled space on the chart.
Test: Current Open < Previous Low
Gap Up
Technical Analysis & Chart Patterns
%
An opening price above the previous period's high, leaving an unfilled space on the chart.
Test: Current Open > Previous High
GDP Growth Rate
Economy, Macro & Market Cycles
%
The percentage change in real gross domestic product from one period to the corresponding earlier one.
GDP Growth = (Current Period Real GDP - Prior Period Real GDP) / Prior Period Real GDP x 100