Glossary of terms used on this site

  Glossary of terms used on this site
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Term Definition
Market capitalization

The market value of a company, calculated by multiplying the number of shares issued and outstanding by their current market price.

Market Maker

A member firm who give two way quotation for particular security (ies) and who is under an obligation to buy and sell them subject to certain conditions such as overall exposure, spread etc.

Matched Transaction

A check is carried out on the computer to find out whether purchases and sales as reported by the members match. The transactions, thus compared are called matched transactions.

Merchant Banker

Any person who is engaged in the business of issue management either by making arrangement regarding selling, buying or subscribing to securities or acting as manager, consultant, adviser or rendering corporate advisory service in relation to such issue management.


Mumbai Interbank Bid and Offer rates. Calculated by the average of the interbank offer rates based on quotations at nearly 30 major banks.

Odd Lot

Anything less than the standard unit of trading.

Offer Document

As per SEBI DIP guidelines, offer document means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue.

Offer For Sale

An offer of securities by existing shareholder(s) of a company to the public for subscription, through an offer document.

Offer period

The period between the date of entering into Memorandum of Understanding or the public announcement, as the case may be and the date of completion of offer formalities relating to the offer.

Offer Price

Price at which units in trust can be bought. It often includes an entry fee. It also refers to the price at which securities are offered to the public.

Open interest

The number of contracts outstanding for a given option or futures contract.

Open Order

An order to buy and sell a security that remains in effect until it is either cancelled by the customer or executed.

Order book

It is an ‘electronic book’ that shows the demand for the shares of the company at various prices.

OTC (Over the Counter)

A financial transaction that is not made on an organized exchange. Generally the parties must negotiate all the details of each transaction or agree to use simplifying market conventions.

Pari Passu

A term used to describe new issue of securities which have same rights as similar issues already in existence.

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