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Market Basics & Instruments

Share

A single unit of ownership in a company, giving its holder a proportional claim on the company's profits and on whatever is left over if…

Ownership fraction = Shares Held / Total Shares Outstanding shares
Corporate Actions, Dividends & Governance

Share Buyback

A company purchasing its own shares from shareholders, reducing the share count.

Post-Buyback EPS = Net Profit / (Shares Outstanding - Shares Bought Back) ₹ crore
Financial Statements & Accounting

Share Capital

The portion of shareholders' funds representing the face value of shares issued and paid up.

Paid-Up Share Capital = Face Value per Share x Number of Shares Issued and Paid Up ₹ crore
Market Basics & Instruments

Shareholder

A person or institution that owns shares in a company and therefore holds part of its ownership.

Test: the holder's name appears in the register of members, or in a depository account holding the shares, as of the relevant record date qualitative
Financial Statements & Accounting

Shareholders' Equity

The owners' claim on the company in the accounts, equal to share capital plus accumulated reserves.

Shareholders' Equity = Share Capital + Reserves and Surplus = Total Assets - Total Liabilities ₹ crore
Corporate Actions, Dividends & Governance

Shareholding Pattern

The quarterly disclosure showing how a listed company's shares are distributed across shareholder categories.

Test: the filing reports promoter, institutional and public holdings, along with pledged shares and holders above 1% %
Fundamental Analysis & Valuation

Shares Outstanding

The total number of a company's shares currently held by all shareholders, including promoters and institutions.

Shares Outstanding = Issued Shares - Treasury Shares; also equals Paid-Up Share Capital / Face Value shares
Risk & Portfolio Management

Sharpe Ratio

Return above the risk-free rate per unit of total volatility.

Sharpe Ratio = (Portfolio Return - Risk-Free Rate) / Standard Deviation of Portfolio Returns ratio (x, times)
Technical Analysis & Chart Patterns

Shooting Star

A candlestick with a small body near the bottom of its range and a long upper wick, appearing after an advance.

Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows an advance qualitative
Derivatives, Futures & Options

Short Call

A position created by writing a call option, receiving the premium and taking on an obligation to deliver if exercised.

Profit at expiry = Premium Received x Lot Size - max(Spot - Strike, 0) x Lot Size; loss is unbounded above the strike
Orders, Execution & Market Structure

Short Delivery

A failure to deliver securities to the clearing corporation by the settlement deadline after having sold them.

Test: the seller's demat balance is insufficient at pay-in, so the sold quantity is not delivered on the settlement date qualitative
Market Basics & Instruments

Short Position

A position created by selling a security one does not own, which gains when the price falls and loses when it rises.

Profit or Loss = (Entry Price - Exit Price) x Quantity
Derivatives, Futures & Options

Short Put

A position created by writing a put option, receiving the premium and taking on an obligation to buy if exercised.

Profit at expiry = Premium Received x Lot Size - max(Strike - Spot, 0) x Lot Size; maximum loss when the underlying reaches zero
Market Basics & Instruments

Short Selling

Selling a security that is not owned, in the expectation of buying it back later at a lower price.

Test: the sale is executed without holding the security in the seller's demat account at the time of sale qualitative
Financial Statements & Accounting

Short-Term Borrowings

Debt repayable within twelve months, typically working capital loans, cash credit facilities and commercial paper.

Test: the borrowing is contractually repayable within twelve months of the balance sheet date ₹ crore
Indian Market, Regulation & Taxation

Short-Term Capital Gain

A capital gain on an asset held for less than the qualifying period, taxed at a higher rate than a long-term gain.

Test: listed equity or equity-oriented fund units held for 12 months or less; other assets have longer qualifying periods
Indicators & Oscillators

Signal Line

A moving average of an indicator's own values, plotted alongside it to mark where the indicator turns relative to its own trend.

Signal Line = Moving Average of the Indicator's values over a stated period qualitative
Indicators & Oscillators

Simple Moving Average

A moving average that weights every period in the window equally.

SMA = (P1 + P2 + ... + Pn) / n
Orders, Execution & Market Structure

Slippage

The difference between the price expected when an order is sent and the price at which it actually executes.

Slippage = Actual Average Execution Price - Intended Price (sign adjusted for buy or sell)
Market Basics & Instruments

Small-Cap Stock

A share of a company ranked 251st or lower by market capitalisation under India's classification.

Rank all listed companies by average market capitalisation; rank 251 onwards is small-cap qualitative
Funds, ETFs & Index Investing

Smart Beta

A rules-based index strategy that weights constituents by a chosen factor rather than by market capitalisation.

Test: constituent weights are determined by a published rule based on a factor such as value, quality, momentum, low volatility or equal weight qualitative
Indicators & Oscillators

Smoothing Period

The number of periods an indicator averages over, controlling how much noise it removes and how much it lags.

Test: increasing the smoothing period reduces the variance of the indicator's output and increases its lag days
Market Psychology & Behavioural Finance

Social Proof

The tendency to treat the actions of others as evidence about what is correct.

Test: the strength of a belief rises with the number of people observed holding it, independent of any new evidence qualitative
Economy, Macro & Market Cycles

Soft Landing

An outcome in which monetary tightening slows inflation without causing a recession.

Test: inflation returns toward target while growth slows but stays positive and unemployment rises only modestly qualitative