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Glossary of terms used on this site

  Glossary of terms used on this site
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Glossaries

Term Definition
Float

The number of shares issued and outstanding of a company’s stock.

Floating rate coupon

Coupon rate that varies with (“floats against”) a standard market benchmark or index.

Floating Stock

The fraction of the paid up equity capital of a company which normally participates in day to day trading.

Green shoe option

Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism in accordance with the specific provisions in DIP Guidelines, which is granted to a company to be exercised through a stabilizing Agent.

Hedge Funds

Private investment pools that invest aggressively in all types of markets, with managers of the fund receiving a percentage of the investment profits. The name is something of a misnomer since a hedge fund’s raison d’être is quite the opposite of hedging.

Insider trading

Practice of corporate agents buying or selling their corporation’s securities without disclosing to the public significant information which is known to them but which has not yet affected the price.

Institutional Investors

Organizations those invest, including insurance companies, depository institutions, pension funds, investment companies, and endowment funds.

ISIN

ISIN (International Securities Identification Number) A unique identification number allotted for each security in the depository system by SEBI.

Limit Order

An order to buy or sell a specified number of shares of a security when a specified price is reached.

Listed Company

A company which has any of its securities offered through an offer document listed on a recognized stock exchange and also includes Public Sector Undertakings whose securities are listed on a recognized stock exchange.

Listing

Formal admission of a security into a public trading system.

Listing Agreement

An agreement which has to be entered into by companies when they seek listing for their shares on a Stock Exchange. Companies are called upon to keep the stock exchange fully informed of all corporate developments having a bearing on the market price of shares like dividend, rights, bonus shares, etc.

Long Position

A position showing a purchase or a greater number of purchases than sales in anticipation of a rise in prices. A long position can be closed out through the sale of an equivalent amount.

Margin

An advance payment of a portion of the value of a stock transaction. The amount of credit a broker or lender extends to a customer for stock purchase.

Marked to market basis

The process whereby the book value or collateral value of a security is adjusted to reflect current market value.

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