Browse All 840 Stock Market Terms A–Z

Profit Before Tax Financial Statements & Accounting ₹ crore Profit after all operating and financing costs but before income tax is deducted. Profit Before Tax = Operating Profit + Other Income - Interest Expense - Exceptional Items

Promoter Holding Corporate Actions, Dividends & Governance % 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

Promoter Pledge Corporate Actions, Dividends & Governance % Shares held by promoters that have been given as collateral against borrowing. Pledge % = Pledged Shares / Total Promoter Shares x 100, disclosed quarterly

Property, Plant and Equipment Financial Statements & Accounting ₹ crore 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

Prospect Theory Market Psychology & Behavioural Finance qualitative A model of decision-making under risk in which outcomes are valued as gains and losses from a reference point, with losses weighted more heavily. Value function: concave for gains, convex for losses, and steeper for losses than for gains by a factor of roughly two

Protective Put Derivatives, Futures & Options ₹ 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

Provision Financial Statements & Accounting ₹ crore 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

Proxy Voting Corporate Actions, Dividends & Governance qualitative 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

Pullback Technical Analysis & Chart Patterns qualitative 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

Pump and Dump Indian Market, Regulation & Taxation qualitative 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

Purchasing Managers' Index Economy, Macro & Market Cycles index points 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

Purchasing Power Economy, Macro & Market Cycles % The quantity of goods and services a unit of currency can buy. Purchasing Power Change = 1 / (1 + Inflation Rate) - 1, over the period considered

Put Option Derivatives, Futures & Options ₹ 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

Put-Call Parity Derivatives, Futures & Options ₹ 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

Put-Call Ratio Indicators & Oscillators ratio (x, times) 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

Puttable Bond Bonds & Fixed Income qualitative 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

Qualified Institutional Placement Corporate Actions, Dividends & Governance qualitative 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

Qualified Opinion Financial Statements & Accounting qualitative 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

Quality Investing Fundamental Analysis & Valuation qualitative 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

Quantitative Easing Economy, Macro & Market Cycles ₹ crore 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

Quick Ratio Fundamental Analysis & Valuation ratio (x, times) Current assets excluding inventory, divided by current liabilities — a stricter test of short-term solvency. Quick Ratio = (Current Assets - Inventory) / Current Liabilities

R-Squared Risk & Portfolio Management % 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

Rate of Change Indicators & Oscillators % The percentage change in price over a fixed number of periods. ROC = (Current Close - Close n periods ago) / Close n periods ago x 100

RBI Retail Direct Bonds & Fixed Income qualitative 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

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