1. Authorized Capital: AC is the capital with which the company is registered. It can issue shares upto that level.

2. Paid Up Capital: The amount of capital actually paid by the shareholders in respect of shares allotted to them.

3. Public Issue: Public issue is one of the ways of raising funds by a company. Whenever an offer is made to the public to purchase the shares directly from the co, it is called as pub issue in a primary market. These shares are then traded in the stock market as share secondary market.

4. Rights Issue: A rights issue is a way in which a company can sell new shares in order to raise capital. Shares are offered to existing shareholders in proportion to their current shareholding. The price at which the shares are offered is usually at a discount to the current share price, which gives investors an incentive to buy the new shares

5. Debentures: - debentures are small loans taken by the company. Debenture holder gets the first preference while distributing the dividends to the share holders.

6. NCD: Non-convertible debentures are those kinds of debentures which cannot be changed in the long-run. These debentures carry a high rate of interest than the convertible debentures.

7. Bond: bond is like a mortgage or car loan, secured by collateral. Bonds are issued to public by a Government body, public company.

8. Open Offer: Open offer comes under SEBI takeover code (1997). For example, there is a company ABC Ltd. One can acquire 5% shares of ABC Ltd from stock exchanges or from the promoters themselves in a year. For this, the buyers of the shares don't have to inform SEBI about their holding in the company. If their holding in the company exceeds 5%, the buyer has to inform SEBI. If within a year, one buys 20% or more shares of a company, the buyer has to give an open offer to the other shareholders. It has to give open offer for another 20% equity share of that company. In our example, assume I buy 25% equity holding of ABC in a year. Now I will have to give open offer for another 20% shares of ABC. Open offer is nothing but a legal document stating, "I have bought __% equity shares of ___ Company at ___price. Now I want to acquire another 20% shares at the same price. Those who want to sell me can submit their shares to me in the manner prescribed."

9. FCCB: A Foreign Currency Convertible Bond (FCCB) is a type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. It gives two options. One is, to get the regular interest and principal and the other is to convert the bond in to equities. It is a hybrid between bond and stock.

10.DECOUPLING: US being the main market where each and every country is dependent on. thus if US coughs, the world sneezes, this has been the phenomenon for the last few decades, slowly and slowly other economy China and India in particular are coming on their own and the domestic consumption story has been told and retold in the recent years. Thus these countries are getting more self reliant (I mean they are able to withstand the US decline) and are able to sustain their GDP growth irrespective of US. thus there is a theory floating that few countries are decoupled from the rest of the world market and can move ahead with GPD growth irrespective of others performance or not. This is the decoupling theory.

Only the BRIC countries are discussed for Decoupling as only these countries have strong domestic demand to sustain the growth. The term "decoupling" is used in many different contexts. Speaking in financial terms, Decoupling holds that European and Asian economies, especially emerging ones, have broadened and deepened to the point that they no longer depend on the United States for growth, leaving them insulated from a severe slowdown there, even a fully fledged recession. That means countries like India, China, Brazil can grow on their own even if developed nations like USA/UK face recession. The decoupling hypothesis is the idea that business cycles in emerging market economies have become more independent of or decoupled from business cycles in advanced economies in recent years.
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11.DUAL LISTING: When a company's securities are listed on more than one exchange for the purpose of adding liquidity to the shares and allowing investors greater choice in where they can trade their shares. Dual listing is not a widely used technique, although it is thought to improve the spread between the bid and ask prices, which helps investors obtain a better price for their securities. Hewlett-Packard (HP), for example, is listed on both the NYSE and Nasdaq.

12.VOLUME Volume means the total number of shares which changed hands. It includes the quantity of shares sold as well as bought. For example, if you have a volume of 1,000,000 in one trading day, this means that 1,000,000 shares were bought and sold that day. 13.EPS EPS stands for EARNINGS PER SHARE. It is an indicator of a company's profitability. It is the portion of companies profit allocated to each outstanding share of common stock. It helps in determining share price and major component to calculate price to earning ratio. EPS formula: Earnings available to equity shareholders

________________________________________ No of outstanding equity shares 14.P/E ratio P/E ratio also known as PRICE MULTIPLES or EARNING MULTIPLES. It indicates the number of times price of a share is higher than its EPS. High P/E indicates the investor is expecting high return as compared to the firm of

low P/E ratio. Formula for computing P/E ratio is MARKET VALUE PER SHARE divided EPS. 15.REPO RATE It is the rate at which RBI lends money to the bank. Why Repo? It acts as a policy rate when the banking system is dry and RBI needs to infuse liquidity into the system. 16.REVERSE REPO It is the rate at which RBI borrows money from banks. One basis point is one-hundredths of 1% Why Reverse Repo? It becomes the policy rate when the system is flush with liquidity and RBI absorbs this liquidity. 17.CDS [Credit Default Swap] A CDS is a derivative used to offset risks in debt markets. It allows creditors to insure themselves against the possibility that a borrower might default. E.g.: If an investor in a companys bond wants to buy some kind of insurance against the possibility that the company might default, the investor could buy CDS for a price. 18.QIP [Qualified Institutional Placements] QIP is a capital raising too, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants, which are convertible into equity shares, to a qualified institutional buyer (QIB). 19.Participatory Notes[P-Notes] P-Notes are instruments that allow FIIs not registered in India to invest indirectly in Indian Markets. These are issued by the registered FIIs. 20.CRR CRR is the amount of funds that banks have to keep with RBI.
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21.SLR SLR is the amount which a bank has to maintain in the form of gold, cash & Government securities. 22.Bank Rate Discount Rate/Rate of interest which a central bank charges on the loans & advances that it extends to commercial banks. 23.PLR Rate of interest at which banks lend to its favoured customers. 24.Net Interest Margin Difference between interest earned and interest paid . It is a key measure of bank profitability. 25.OTC MARKET Also termed as off exchange trading. It is a decentralized market of securities where market participants trade over the phone or electronic network. There is no physical trading floor. Trading occurs here via middle man called dealers who facilitate buy and sell orders. Securities which are not listed are traded here because they are unable to meet the listing requirements. When you buy or sell on OTC market you are dealing with one broker and their own bid or offer. When you buy or sell on a public exchange and not the OTC market you are getting the best bid and offer available from all buyers and sellers. 26.Compound Annual Growth Rate - CAGR The year-over-year growth rate of an investment over a specified period of time.

27.Follow on Public Offer (FPO) Any company that is already listed with either the NSE or Bse and want to raise more capital from the market have to offer the FPO....the first time the company raises the capital is called IPO (initial public offer)henceforth its FPO. 28.Pegging of currency It is a method of fixing a country's currency to stay at a certain rate below or above another country's currency. 29.Fiscal policy Fiscal policy is the use of govt spending and revenue collections to influence the economy. 30.Monetary policy Monetary policy is the process by which the government, central bank, or monetary authority of a country controls supply and availability of money. 31.Treasury Stock Treasury shares are the company's own shares that they have bought back from outside shareholders. Once a company buys back its own shares, they are considered treasury shares and can either be cancelled (ie. they are no longer considered issued share capital. Issued share capital is decreased by the par value of those shares) or reissued. 32.Warrant Warrant is a security that entitles the holder to buy stock of the company that issued it at a specified price, which is much higher than the stock price at time of issue. 33.Grey Market

The grey/gray market involves unofficial buying and selling of shares a few days before the actual listing of the IPO on the stock exchanges. 34.V-Shaped Recession In this scenario, an economy falls into a sharp recession but quickly recovers. Imagine the left side of the letter V representing an economy falling into recession, while the right side represents its quick recovery. A V-shaped recession is "sharp and quick". When the current recession started in the United States, many held out hope that it would be a "V-shaped" recession. Unfortunately, this wasn't the case. 35.W-Shaped Recession Also known as a "double-dipped" downturn. In a W-shaped recession, you would have a sharp downturn which is followed by small, temporary recovery. After the temporary "blip" in growth, the economy turns lower once again, before it eventually puts in a full recovery. 36.U-Shaped Recession In a U-shaped recession, the economy takes a much longer period of time to recover (usually in the neighborhood of 12-24 months) from a sharp recession. 37.L-Shaped Recession Imagine a sharp recession, followed by years of stagnant growth. This is the L-shaped recession, and this is the scenario that the people running the United States desperately want to avoid. In the L-shaped recession, the economy doesn't begin to recover for an extremely long period of time (think 7-10 years).

The best example of an L-shaped recession is Japan in the 1990s. Their housing and equity markets plummeted, and the country was thrown into a multi-year depression. They experienced the L-shaped recession. 38.Asset Bubble/ Asset Inflation An asset bubble is formed when the prices of assets are over-inflated due to excess demand. It usually occurs when investors all flock to a particular asset class, such as real estate or commodities such as oil. 39.Sweat Equity Equity acquired by a company's executives on favorable terms, to reflect the value the executives have added and will continue to add to the company. 40.Arbitrage Buying securities in one country/market and selling them in another. 41.M&A Inbound Deals acquisition of Indian firms by overseas companies Outbound Deals acquisition of foreign firms by Indian companies 42.G20 Group of 20 Finance Ministers & Central Bank Governors 43.Consumption driven economy Consumption drives demand. Demand drives the industrial production and ultimately the industrial production increases and this adds to the GDP and the increased GDP shows the economic strength of country 44.LIBOR An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is the world's most widely used benchmark for short-term interest rates. It's important because it is the rate at which the world's most preferred borrowers are able to borrow
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money. It is also the rate upon which rates for less preferred borrowers are based. For example, a multinational corporation with a very good credit rating may be able to borrow money for one year at LIBOR plus four or five points. 45.Bid & Ask Bid Buy Ask Sell 46. Euro Zone 16 European Union (EU) member states currency Euro 47.European Union 27 member states 48.Equity dilution Eq dilution is a general term that results from the issue of additional common shares by a company 49.Base Effect The base effect relates to inflation in the corresponding period of the previous year 50.Market Cap Market capitalization represents the aggregate value of a company or stock Eg: Stock price: $10 Outstanding shares: 300 million Market cap: $10 x 300,000,000 = $3 billion

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51.Support Demand outstrips supply 52.Resistance Supply outstrips demand 53.Multi Bagger Multi Bagger is a stock that goes up in price multiple times of the initial investment. So, if we apply the definition as it is, and then almost half of the big companies have been the Multi Baggers in this recession leading up to the current rally. 54.Hot Money

55.Fiscal deficit When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings)

56.Fiscal consolidation Fiscal consolidation is a policy aimed at reducing government deficits and debt accumulation. 57.Currency Debasement Debasement is the practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins. A coin is said to be debased if the quantity of gold, silver, copper or nickel is reduced. Reasons for debasement One reason a government will debase its currency is financial gain for the sovereign at the expense of citizens. By reducing the silver or gold content of a
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coin, a government can make more coins out of a given amount of specie. Inflation follows, allowing the sovereign to pay off or repudiate government bonds. However, the purchasing power of the citizens currency has been reduced. Another reason is to end a deflationary spiral. 58.Proprietary Trading Proprietary trading (also "prop trading" or PPT) occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to its customers' money, so as to make a profit for itself. They may use a variety of strategies such as index arbitrage, statistical arbitrage, merger arbitrage, fundamental analysis, volatility arbitrage or global macro trading, much like a hedge fund. Many reporters and analysts believe that large banks purposely leave ambiguous the amount of non-proprietary trading they do versus the amount of proprietary trading they do, because it is felt that proprietary trading is riskier and results in more volatile profits.

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