𝓜𝓟𝓝𝓒

BSE - Bombay Stock Exchange

NSE - National Stock Exchange

IPO (Initial Public Offer) : Different options are available for a company to raise finance. One of such options is to issue shares/debentures to the public. Whenever the company offers shares/debentures to the general public, it is called Initial Public Offer. It is also called Primary Market.

FPO (Further Public Offer): If the company already listed on the stock exchanges offer to the public again for issuing new shares, then such offer is called Further Public Offer (FPO).

Trading Account: One needs to open a trading account with the brokers of stock exchanges to buy and sell shares.

Demat Account: It is an account to hold securities. It is Depository Participants who help you to open demat accounts.

Depositories: Depositories are the institutions where one can hold securities in dematerialised form. One cannot directly deal with depositories to open demat account.

NSDL - National Securities Depository Limited & CDSL - Central Depositories Services(India) Limited are only the two permanently licensed depositories in India.

DP (Depository Participant): As brokers are the agents of stock exchanges and facilitate opening of trading accounts, Depository participants are also the agents of Depositories who facilitate opening of demat accounts.

BE - Book Entry: No intraday trading is allowed in this series of shares.

BL -Block deals: It is meant for placing bulk orders. To do these kind of deals one shall have at least 500,000 shares in one bundle or the value of the deal shall be Rs. 5 Crores

BTST - Buy Today Sell Tomorrow : It is a strategy applied when one expects that price of a share is going to increase tomorrow. So, one buys such shares today and sells tomorrow.

STBT - Sell Today Buy Tomorrow : It is a strategy applied when one expects that price of a share is going to decrease tomorrow. So, one sells such shares today and buys tomorrow. In general, this strategy is applied when one already holds such shares.

T+2 days settlement: If one buys shares, then one will become shareholder as per records after 2 business days from the transaction date. However, one can trade in such shares even before settlement if such shares are not "BE" type and in case of no other restrictions.

Record date: It is the date fixed in case of events like Dividends, Rights issue, Bonus etc. Only those who hold securities on record date as per records are eligible for receiving dividends, bonus and to subscribe for Rights.

Ex-date: One business day before the record date is called Ex-date. It is also the day on which price of a share gets adjusted for the specified events if all other factors remain same.

Bullish: If the price of a share or index is increasing, it is said to be Bullish.

Bearish: If the price of a share or index is decreasing, it is said to be Bearish.

FAANG: Investors use this acronym to refer the stocks of companies - Facebook, Apple, Amazon, Netflix and Google (traded in the market as Alphabet)

Market order: In this type of order, Buy/Sell order executes at the best available price.

Limit order: In this type of order, Buyer quotes the price while placing order and the order is executed only if the price available is less or equals the quoted price. In case of seller, order is executed only if the price available is more or equals the quoted price.

Bonus issue : If the company issues new shares to the existing shareholders capitalizing their free reserves for free of cost, then such issue is called bonus issue

Rights issue : If the company issues new shares to the existing shareholders at a discounted price capitalizing their free reserves, then it is a rights issue.

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Stay tuned for more terms.