Browse All 840 Stock Market Terms A–Z

Intraday Trading Market Basics & Instruments qualitative Buying and selling the same security within a single trading session so that no position is carried overnight. Test: the position is opened and closed within the same trading day, leaving a net quantity of zero at the close

Intrinsic Value Fundamental Analysis & Valuation ₹ The value of a business justified by the cash it can be expected to produce over its life, discounted to today. Intrinsic Value = Sum of Future Free Cash Flows discounted at the required rate of return

Inventory Financial Statements & Accounting ₹ crore Goods held for sale, work in progress, and raw materials, carried at the lower of cost and net realisable value. Inventory Days = Average Inventory / Cost of Goods Sold x 365

Inventory Turnover Ratio Fundamental Analysis & Valuation ratio (x, times) Cost of goods sold divided by average inventory, showing how many times stock is sold and replaced in a year. Inventory Turnover = Cost of Goods Sold / Average Inventory; Inventory Days = 365 / Inventory Turnover

Inverse Head and Shoulders Technical Analysis & Chart Patterns qualitative A formation of three troughs in which the middle trough is the lowest and the outer two are roughly level, joined by a neckline through the intervening highs. Neckline = line through the two highs between the troughs; conventional measured move = Head Depth below Neckline, projected up from the break

Inverted Hammer Technical Analysis & Chart Patterns qualitative A candlestick with a small body near the bottom of its range and a long upper wick, appearing after a decline. Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows a decline

Inverted Yield Curve Bonds & Fixed Income % A yield curve on which short-maturity yields exceed long-maturity yields. Test: yield on a short maturity, such as two years, exceeds the yield on a longer one, such as ten years

Investing Cash Flow Financial Statements & Accounting ₹ crore The net cash used in or generated by buying and selling long-term assets and investments during a period. Investing Cash Flow = Proceeds from Asset Sales + Investment Income - Capital Expenditure - Acquisitions - Investments Made

Investment Adviser Indian Market, Regulation & Taxation qualitative A SEBI-registered professional who advises on securities for a fee and owes a fiduciary duty to the client. Test: the person holds a SEBI registration as an investment adviser and charges a fee for advice rather than earning commission on products

Investment Grade Bonds & Fixed Income qualitative A credit rating of BBB minus or above, indicating relatively low expected default risk. Test: the rating is BBB- or higher on the standard scale

Investor Market Basics & Instruments qualitative A market participant who buys securities for their expected long-term cash flows and business performance rather than for short-term price movement. Test: the holding decision rests on the underlying business or issuer's economics, with a horizon measured in years

Investor Protection Fund Indian Market, Regulation & Taxation ₹ A fund maintained by each exchange to compensate investors for losses arising from a defaulting trading member. Test: the claim arises from a declared default of a trading member and falls within the compensation limit set by the exchange

IPO Allotment Indian Market, Regulation & Taxation qualitative The process of distributing shares among applicants when an issue is subscribed, by lottery in the oversubscribed retail portion. Test: in an oversubscribed retail portion, allotment is by lottery in minimum lots, so each application has an equal chance regardless of size

Iron Condor Derivatives, Futures & Options ₹ A four-leg position writing an out-of-the-money call and put while buying further out-of-the-money protection on both sides. Net Credit = Premiums Received - Premiums Paid; Maximum Loss = (Width of the Wider Wing - Net Credit) x Lot Size

ISIN Market Basics & Instruments qualitative The twelve-character International Securities Identification Number that uniquely identifies a security worldwide. ISIN = 2-letter country code + 9-character national identifier + 1 check digit (12 characters total)

Island Reversal Technical Analysis & Chart Patterns qualitative A cluster of periods isolated on both sides by gaps in opposite directions, leaving it detached from the surrounding chart. Test: a gap in one direction, one or more periods of trading, then a gap back in the opposite direction, with the two gaps overlapping in price

Kelly Criterion Risk & Portfolio Management % A formula giving the position size that maximises the long-run growth rate of capital. Optimal Fraction = (Win Probability x Payoff Ratio - Loss Probability) / Payoff Ratio

Keltner Channel Indicators & Oscillators ₹ Bands plotted a multiple of average true range above and below an exponential moving average of price. Middle Line = 20-period EMA; Upper Channel = Middle + 2 x ATR; Lower Channel = Middle - 2 x ATR

KYC Indian Market, Regulation & Taxation qualitative The know-your-customer process of verifying an investor's identity, address and financial details before market access is granted. Test: identity, address and PAN are verified against prescribed documents and recorded with a KYC registration agency

Laddering Bonds & Fixed Income qualitative Holding bonds with staggered maturities so that a portion matures each year. Test: the portfolio is divided across n maturity rungs, with roughly equal amounts maturing in each successive period

Lagging Indicator Indicators & Oscillators qualitative An indicator that confirms a move after it is under way, typically built by smoothing price over a lookback window. Test: the indicator averages or smooths past values, so its turning point necessarily follows price's own

Large-Cap Stock Market Basics & Instruments qualitative A share of one of the largest listed companies by market capitalisation — in India, one of the top 100 under SEBI's classification. Rank all listed companies by average market capitalisation; ranks 1 to 100 are large-cap

Last Traded Price Market Basics & Instruments ₹ The price at which the most recent trade in a security was executed on the exchange. LTP = execution price of the most recent trade, regardless of its size

Latency Orders, Execution & Market Structure qualitative The time elapsed between sending an instruction and its effect being registered by the exchange. Round-Trip Latency = time from order transmission to receipt of the exchange's acknowledgement

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