Browse All 840 Stock Market Terms A–Z

Bull Market Economy, Macro & Market Cycles % A sustained period of rising prices, conventionally marked by a rise of 20% or more from a low. Test: the index has risen 20% or more from its prior trough, without an intervening 20% decline

Bullish Divergence Indicators & Oscillators qualitative A condition in which price makes a lower low while an oscillator makes a higher low. Test: current price low < previous price low, while current indicator low > previous indicator low

Bullish Engulfing Technical Analysis & Chart Patterns qualitative A two-candle formation in which a rising candle's body completely covers the preceding falling candle's body. Test: previous Close < previous Open; current Open <= previous Close and current Close >= previous Open

Business Cycle Economy, Macro & Market Cycles qualitative The recurring pattern of expansion and contraction in economic activity around a long-term growth trend. Phases: expansion, peak, contraction, trough, recovery, repeating with irregular length and amplitude

Business Income Indian Market, Regulation & Taxation ₹ Income from trading treated as a business rather than as investment, taxed at slab rates with expenses deductible. Business Income = Trading Profit - Deductible Expenses including brokerage, exchange charges, internet, depreciation and advisory fees

Butterfly Spread Derivatives, Futures & Options ₹ A three-strike position buying one option at each outer strike and writing two at the middle strike. Net Debit = Lower Premium + Upper Premium - 2 x Middle Premium; Maximum Gain = (Strike Interval - Net Debit) x Lot Size

Calendar Spread Derivatives, Futures & Options ₹ Writing an option in a nearer expiry and buying the same strike in a further expiry, or the equivalent in futures. Net Debit = Far Expiry Premium - Near Expiry Premium, at the same strike

Call Auction Orders, Execution & Market Structure ₹ A matching mechanism that collects orders over a window and executes them all at a single price that maximises traded quantity. Equilibrium Price = the price at which the largest quantity can be matched; ties are broken by minimum unmatched quantity

Call Option Derivatives, Futures & Options ₹ An option giving its buyer the right to buy the underlying at the strike price on or before expiry. Payoff at expiry for the buyer = max(Spot - Strike, 0) - Premium Paid

Callable Bond Bonds & Fixed Income qualitative A bond the issuer may redeem before maturity, at a stated price on stated dates. Test: the terms give the issuer an option to redeem early; the investor's return should be computed to the earliest call date

Calmar Ratio Risk & Portfolio Management ratio (x, times) Annualised return divided by the maximum drawdown over the same period. Calmar Ratio = Compound Annual Growth Rate / Maximum Drawdown

Candlestick Technical Analysis & Chart Patterns qualitative A chart element showing a period's open, high, low and close as a body between open and close with wicks to the extremes. Body = distance between Open and Close; Upper Wick = High - max(Open, Close); Lower Wick = min(Open, Close) - Low

Capacity Utilisation Economy, Macro & Market Cycles % The proportion of installed productive capacity that is actually being used. Capacity Utilisation = Actual Output / Maximum Possible Output x 100

Capital Allocation Fundamental Analysis & Valuation qualitative Management's decisions about where to deploy the cash a business generates: reinvestment, acquisitions, debt repayment, dividends or buybacks. Test: incremental capital deployed earns a return above the cost of capital, judged over several years

Capital Asset Pricing Model Fundamental Analysis & Valuation % A model that estimates the return required on an asset as the risk-free rate plus a premium proportional to its market risk. Expected Return = Risk-Free Rate + Beta x (Expected Market Return - Risk-Free Rate)

Capital Expenditure Financial Statements & Accounting ₹ crore Spending on acquiring or improving long-lived assets, recorded on the balance sheet and expensed over time through depreciation. Capital Expenditure = Increase in Gross Block + Increase in Capital Work in Progress

Capital Gain Market Basics & Instruments ₹ The profit made when a capital asset is sold for more than its cost of acquisition. Capital Gain = Sale Consideration - Cost of Acquisition - Transfer Expenses

Capital Gains Tax Indian Market, Regulation & Taxation ₹ Tax on the profit realised when a capital asset is transferred. Taxable Gain = Sale Consideration - Cost of Acquisition - Cost of Improvement - Transfer Expenses

Capital Loss Market Basics & Instruments ₹ The loss incurred when a capital asset is sold for less than its cost of acquisition. Capital Loss = Cost of Acquisition + Transfer Expenses - Sale Consideration

Capital Market Line Risk & Portfolio Management % The line showing the risk-return combinations available by mixing the risk-free asset with the optimal risky portfolio. Expected Return = Risk-Free Rate + [(Market Return - Risk-Free Rate) / Market Standard Deviation] x Portfolio Standard Deviation

Capital Reduction Corporate Actions, Dividends & Governance ₹ crore A court-approved reduction of a company's share capital, by cancelling shares or returning capital to shareholders. Test: approved by special resolution and confirmed by the National Company Law Tribunal, with creditor objections heard

Capital Work in Progress Financial Statements & Accounting ₹ crore Expenditure on assets still under construction, held on the balance sheet until the asset is ready for use. Test: the asset is not yet ready for its intended use, so no depreciation is charged and costs accumulate on this line

Capitulation Market Psychology & Behavioural Finance qualitative The point in a decline at which remaining holders abandon their positions, typically on heavy volume. Test: a sharp price fall on unusually high volume, accompanied by broad negative sentiment and heavy redemptions

Carry Forward of Losses Indian Market, Regulation & Taxation ₹ The ability to carry an unabsorbed loss into future years to set off against future income of the permitted type. Test: the return is filed by the due date, and the loss is set off in later years only against income of the category the rules permit

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