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840 terms · page 26 of 35


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All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Financial Statements & Accounting

Profit Before Tax

Profit after all operating and financing costs but before income tax is deducted.

Profit Before Tax = Operating Profit + Other Income - Interest Expense - Exceptional Items ₹ crore
Corporate Actions, Dividends & Governance

Promoter Holding

The proportion of a company's shares held by its promoters and the promoter group.

Promoter Holding % = Shares Held by Promoter Group / Total Shares Outstanding x 100 %
Corporate Actions, Dividends & Governance

Promoter Pledge

Shares held by promoters that have been given as collateral against borrowing.

Pledge % = Pledged Shares / Total Promoter Shares x 100, disclosed quarterly %
Financial Statements & Accounting

Property, Plant and Equipment

Tangible long-lived assets used in operations, such as land, buildings, machinery and vehicles, shown net of accumulated depreciation.

Net Block = Gross Block - Accumulated Depreciation ₹ crore
Market Psychology & Behavioural Finance

Prospect Theory

A model of decision-making under risk in which outcomes are valued as gains and losses from a reference point, with losses weighted more…

Value function: concave for gains, convex for losses, and steeper for losses than for gains by a factor of roughly two qualitative
Derivatives, Futures & Options

Protective Put

Buying a put against shares already owned, to place a floor under the holding's value.

Maximum Loss = (Purchase Price - Strike + Premium) x Lot Size; Break-even = Purchase Price + Premium
Financial Statements & Accounting

Provision

A liability of uncertain timing or amount that is recognised in the accounts because an outflow is probable and estimable.

Test: a present obligation exists, an outflow is probable, and a reliable estimate can be made; recognise the best estimate ₹ crore
Corporate Actions, Dividends & Governance

Proxy Voting

Authorising another person to attend a shareholders' meeting and vote on one's behalf.

Test: a valid proxy form is lodged with the company at least 48 hours before the meeting qualitative
Technical Analysis & Chart Patterns

Pullback

A temporary move against the prevailing direction within an ongoing trend.

Test: price retraces a portion of the prior move without violating the swing point that defines the trend qualitative
Indian Market, Regulation & Taxation

Pump and Dump

A manipulation in which operators inflate a security's price through false or misleading promotion, then sell into the demand they created.

Test: coordinated promotion raises price and volume in a low-float security, followed by concentrated selling by the promoters of that message qualitative
Economy, Macro & Market Cycles

Purchasing Managers' Index

A survey-based index of business conditions, where readings above 50 indicate expansion and below 50 contraction.

PMI = weighted diffusion index of survey responses on output, new orders, employment, supplier deliveries and stocks index points
Economy, Macro & Market Cycles

Purchasing Power

The quantity of goods and services a unit of currency can buy.

Purchasing Power Change = 1 / (1 + Inflation Rate) - 1, over the period considered %
Derivatives, Futures & Options

Put Option

An option giving its buyer the right to sell the underlying at the strike price on or before expiry.

Payoff at expiry for the buyer = max(Strike - Spot, 0) - Premium Paid
Derivatives, Futures & Options

Put-Call Parity

The relationship fixing the price of a European call and put with the same strike and expiry relative to the underlying.

Call Price - Put Price = Spot Price - Present Value of Strike
Indicators & Oscillators

Put-Call Ratio

The ratio of put option activity to call option activity, measured by volume or by open interest.

Put-Call Ratio = Put Volume / Call Volume, or Put Open Interest / Call Open Interest ratio (x, times)
Bonds & Fixed Income

Puttable Bond

A bond the holder may sell back to the issuer before maturity, at a stated price on stated dates.

Test: the terms give the holder an option to require early redemption at a specified price and date qualitative
Corporate Actions, Dividends & Governance

Qualified Institutional Placement

A fast-track issue of shares by a listed company to qualified institutional buyers only.

Test: shares are issued to qualified institutional buyers at a price at or above the floor derived from the two-week average of high and low prices qualitative
Financial Statements & Accounting

Qualified Opinion

An audit opinion stating that the financial statements are fairly presented except for a specific matter the auditor identifies.

Test: the auditor concludes that misstatements are material but not pervasive, or that sufficient evidence for one area could not be obtained qualitative
Fundamental Analysis & Valuation

Quality Investing

An approach that prioritises businesses with durable high returns on capital, strong balance sheets and consistent cash generation.

Test: sustained high return on capital employed, low leverage, cash conversion near or above reported profit, and a nameable competitive barrier qualitative
Economy, Macro & Market Cycles

Quantitative Easing

Large-scale purchases of long-dated assets by a central bank to lower long-term rates when policy rates are near zero.

Test: the central bank buys assets on a pre-announced scale to expand its balance sheet, targeting quantity rather than a short-term rate ₹ crore
Fundamental Analysis & Valuation

Quick Ratio

Current assets excluding inventory, divided by current liabilities — a stricter test of short-term solvency.

Quick Ratio = (Current Assets - Inventory) / Current Liabilities ratio (x, times)
Risk & Portfolio Management

R-Squared

The proportion of a portfolio's return variation that is explained by movements in its benchmark.

R-Squared = Square of the Correlation between Portfolio and Benchmark Returns, expressed as a percentage %
Indicators & Oscillators

Rate of Change

The percentage change in price over a fixed number of periods.

ROC = (Current Close - Close n periods ago) / Close n periods ago x 100 %
Bonds & Fixed Income

RBI Retail Direct

A Reserve Bank platform allowing individuals to buy government securities directly, without an intermediary.

Test: the individual holds a Retail Direct Gilt account with the Reserve Bank and participates in primary auctions or secondary trading qualitative