Browse All 840 Stock Market Terms A–Z

Cash and Carry Arbitrage Derivatives, Futures & Options % Buying the underlying in the cash market while selling its futures, locking in the basis as a return. Locked-in Return = (Futures Price - Spot Price - Transaction Costs) / Spot Price, annualised over the days to expiry

Cash and Cash Equivalents Financial Statements & Accounting ₹ crore Cash on hand, bank balances and short-term highly liquid investments readily convertible to a known amount of cash. Test: the instrument matures within three months of acquisition and carries insignificant risk of change in value

Cash Conversion Cycle Fundamental Analysis & Valuation days The number of days between paying for inputs and collecting cash from customers. Cash Conversion Cycle = Inventory Days + Debtor Days - Creditor Days

Cash Flow Statement Financial Statements & Accounting ₹ crore A statement reconciling the change in a company's cash balance over a period, split into operating, investing and financing activities. Change in Cash = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow

Cash Reserve Ratio Economy, Macro & Market Cycles % The proportion of deposits banks must hold as cash with the Reserve Bank, earning no interest. Required Reserves = Net Demand and Time Liabilities x Cash Reserve Ratio

Cash Settlement Derivatives, Futures & Options ₹ Settlement of a derivative by paying the cash difference between the contract price and the final settlement price. Settlement Amount = (Final Settlement Price - Contract Price) x Lot Size, sign adjusted for the position

Cash-Secured Put Derivatives, Futures & Options ₹ Writing a put while setting aside enough cash to buy the underlying if assigned. Cash to Reserve = Strike x Lot Size; Effective Purchase Price if Assigned = Strike - Premium Received

CDSL Indian Market, Regulation & Taxation qualitative The Central Depository Services Limited, India's second depository, holding securities in electronic form. Test: the demat account number is a 16-digit numeric identifier

Certificate of Deposit Bonds & Fixed Income % A negotiable short-term deposit receipt issued by a bank at a discount to face value. Yield = [(Face Value - Price) / Price] x (365 / Days to Maturity) x 100

Chaikin Money Flow Indicators & Oscillators ratio (x, times) The sum of volume weighted by close position over n periods, divided by total volume over the same periods. CMF = Sum of (Money Flow Multiplier x Volume) over n / Sum of Volume over n

Chandelier Exit Indicators & Oscillators ₹ A trailing stop placed a multiple of average true range below the highest high since entry. Long Exit = Highest High over n periods - Multiplier x ATR; Short Exit = Lowest Low over n periods + Multiplier x ATR

Channel Technical Analysis & Chart Patterns qualitative A pair of parallel trendlines enclosing price movement, one along the swing highs and one along the swing lows. Test: an upper and a lower line of equal slope contain the price series over the period examined

Chart Timeframe Technical Analysis & Chart Patterns qualitative The period each bar or candle on a chart represents, from one minute to one month. Test: the timeframe states the duration aggregated into a single plotted period

Circuit Breaker Orders, Execution & Market Structure % An automatic trading halt triggered when an index or a security moves beyond a preset percentage from a reference price. Trigger: index movement of 10%, 15% or 20% from the previous close, with halt duration depending on the level and the time of day

Clean Price Bonds & Fixed Income ₹ A bond's quoted price excluding accrued interest. Clean Price = Dirty Price - Accrued Interest

Clearing Corporation Orders, Execution & Market Structure qualitative The entity that steps between buyer and seller after a trade, guaranteeing settlement to both sides. Test: through novation the clearing corporation becomes buyer to every seller and seller to every buyer

Clearing Member Orders, Execution & Market Structure qualitative A member of a clearing corporation that settles trades and posts margins, either for itself or on behalf of trading members. Test: the firm holds clearing membership and is directly liable to the clearing corporation for settlement obligations

Closet Indexing Funds, ETFs & Index Investing qualitative An active fund that holds a portfolio close to its benchmark while charging active management fees. Test: low active share and low tracking error combined with an expense ratio typical of active management

Closing Price Market Basics & Instruments ₹ The official end-of-day price of a security, computed in India as the volume-weighted average price of trades in the last thirty minutes. Closing Price = VWAP of all trades between 15:00 and 15:30

Co-location Orders, Execution & Market Structure qualitative The practice of placing a trading firm's servers in the exchange's own data centre to minimise the time an order takes to arrive. Test: the participant's matching-engine access is from within the exchange data centre rather than over a public network

Collar Derivatives, Futures & Options ₹ Holding shares while buying a protective put and writing a call, funding the protection with the premium received. Net Cost = Put Premium - Call Premium; Outcome is bounded between (Put Strike - Net Cost) and (Call Strike - Net Cost)

Commercial Paper Bonds & Fixed Income % A short-term unsecured promissory note issued by a company at a discount to face value. Yield = [(Face Value - Price) / Price] x (365 / Days to Maturity) x 100

Commodity Market Basics & Instruments qualitative A standardised raw material or primary product that is traded in interchangeable units, such as gold, crude oil or cotton. Test: units of the good are fungible against a published quality specification, so one unit is a perfect substitute for another

Commodity Channel Index Indicators & Oscillators ratio (x, times) An unbounded oscillator measuring how far the typical price sits from its moving average, scaled by mean deviation. CCI = (Typical Price - SMA of Typical Price) / (0.015 x Mean Deviation), where Typical Price = (High + Low + Close) / 3

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