Stock Market Knowledge & Glossary

A market condition in which securities prices fall by 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

The net asset value of a company calculated as total assets minus intangible assets and liabilities. It represents the liquidation value per share.

A market condition in which prices are rising or expected to rise over a sustained period, driven by investor optimism and economic growth.

Regulatory safety thresholds set by stock exchanges to halt trading in an individual stock or index when severe price swings occur.

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

An electronic account used to hold financial securities like shares, bonds, and ETFs in a dematerialized (digital) format.

A financial ratio showing how much a company pays out in dividends each year relative to its share price.

A company's net profit divided by the number of outstanding shares. It indicates how much money a company makes for each share of its stock.

The unofficial price premium at which an IPO's shares trade before they are officially listed on the stock exchanges.

The process of offering shares of a private corporation to the public in a new stock issuance for the first time.

The total market value of a company's outstanding shares of stock, calculated as total shares multiplied by current share price.

The flagship benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange (NSE).

A valuation ratio comparing a company's current share price to its per-share earnings. A high P/E could mean the stock is expensive or investors expect high future growth.

A measure of financial performance calculated by dividing net income by shareholders' equity, showing how effectively management uses shareholder capital.

The benchmark index of the Bombay Stock Exchange (BSE), composed of 30 of the largest and most actively traded stocks on the BSE.

A disciplined investment approach allowing investors to contribute fixed amounts at regular intervals into mutual funds or stocks.