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840 terms · page 7 of 35


A–Z
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
Economy, Macro & Market Cycles

Commodity Cycle

The long swing in commodity prices driven by the lag between demand changes and the supply response.

Test: high prices induce investment in new supply, which arrives years later and depresses prices, discouraging investment in turn qualitative
Indian Market, Regulation & Taxation

Commodity Transaction Tax

A tax on the sell side of non-agricultural commodity derivative transactions on recognised exchanges.

CTT = Sell-Side Transaction Value x Applicable Rate %
Fundamental Analysis & Valuation

Comparable Company Analysis

The selection and adjustment of a peer group whose multiples are used to value a target company.

Test: peers share the business model, growth profile, margin structure, capital intensity and regulatory environment of the target qualitative
Fundamental Analysis & Valuation

Compound Annual Growth Rate

The constant annual rate at which a value would have had to grow to move from its starting figure to its ending figure.

CAGR = (Ending Value / Beginning Value) raised to (1 / Number of Years) - 1 %
Risk & Portfolio Management

Concentration Risk

The exposure created when a large share of a portfolio sits in one holding, sector or risk factor.

Test: the largest position, sector or factor exposure is large enough that a normal adverse outcome in it would materially damage the portfolio %
Risk & Portfolio Management

Conditional Value at Risk

The average loss on the occasions when the value-at-risk threshold is exceeded.

CVaR = Average of all losses greater than the VaR threshold
Market Psychology & Behavioural Finance

Confirmation Bias

The tendency to seek and favour information that supports an existing view while discounting information that contradicts it.

Test: evidence supporting the held position is sought and accepted readily, while contrary evidence is scrutinised or dismissed qualitative
Fundamental Analysis & Valuation

Consensus Estimate

The average of analysts' forecasts for a company's future earnings, revenue or other metric.

Consensus Estimate = Mean or Median of Contributing Analysts' Individual Forecasts
Funds, ETFs & Index Investing

Consolidated Account Statement

A single statement showing an investor's holdings across all mutual funds and demat accounts, linked by PAN.

Test: holdings across all fund houses and depositories are aggregated under one permanent account number qualitative
Financial Statements & Accounting

Consolidated Financial Statements

Accounts that combine the parent company and all its subsidiaries as if they were a single economic entity.

Test: subsidiaries are line-by-line consolidated with intra-group transactions eliminated and non-controlling interests shown separately qualitative
Technical Analysis & Chart Patterns

Consolidation

A period in which price moves within a bounded range without establishing a directional sequence.

Test: successive highs and lows fall within a defined band, with neither the higher-high nor lower-low condition satisfied qualitative
Economy, Macro & Market Cycles

Consumer Price Index

An index tracking the price of a fixed basket of goods and services bought by households.

CPI = (Cost of the Basket in the Current Period / Cost of the Basket in the Base Period) x 100 index points
Derivatives, Futures & Options

Contango

A condition in which futures prices are above the spot price, and later expiries are priced above nearer ones.

Test: Futures Price > Spot Price, with successively distant contracts priced progressively higher qualitative
Financial Statements & Accounting

Contingent Liability

A possible obligation whose existence depends on an uncertain future event, disclosed in the notes rather than recognised on the balance…

Test: an outflow is possible but not probable, or the amount cannot be measured reliably; disclose rather than provide ₹ crore
Market Basics & Instruments

Contract Note

The legally binding document a broker must issue after each trading day, itemising every trade executed and every charge levied.

Net Amount = Trade Value +/- Brokerage + STT + Exchange Charges + SEBI Fees + Stamp Duty + GST
Derivatives, Futures & Options

Contract Value

The notional value of the underlying that one derivative contract controls.

Contract Value = Lot Size x Current Price of the Underlying
Market Psychology & Behavioural Finance

Contrarian Investing

Deliberately taking positions against prevailing sentiment, on the argument that consensus is already in the price.

Test: the position is taken because sentiment is one-sided, with an independent basis for believing the consensus is wrong qualitative
Bonds & Fixed Income

Convertible Bond

A bond that can be exchanged for a fixed number of the issuer's shares at the holder's option.

Conversion Value = Conversion Ratio x Current Share Price; Conversion Premium = (Bond Price - Conversion Value) / Conversion Value
Bonds & Fixed Income

Convexity

The curvature in the relationship between a bond's price and its yield, correcting duration's straight-line estimate.

Price Change % = -Modified Duration x Change in Yield + 0.5 x Convexity x (Change in Yield) squared ratio (x, times)
Economy, Macro & Market Cycles

Core Inflation

Inflation excluding food and fuel, whose prices are volatile and driven largely by supply conditions.

Core Inflation = Headline Inflation computed on the basket excluding food and fuel components %
Corporate Actions, Dividends & Governance

Corporate Action

Any event initiated by a company that changes its securities or affects its shareholders' holdings.

Test: the event alters the number, value, or form of the shares held, or distributes something to holders on a record date qualitative
Bonds & Fixed Income

Corporate Bond

A debt security issued by a company to borrow from investors rather than from banks.

Corporate Bond Yield = Government Security Yield of the same maturity + Credit Spread qualitative
Corporate Actions, Dividends & Governance

Corporate Governance

The system of rules and practices by which a company is directed and held accountable to its shareholders.

Test: independent board oversight, transparent disclosure, fair treatment of minority shareholders, and effective audit and risk functions qualitative
Economy, Macro & Market Cycles

Correction

A decline of roughly 10% or more from a recent peak, short of the 20% that defines a bear market.

Test: the index has fallen between 10% and 20% from its prior high %