Financial Glossary |
Available for NRI
If yes means NRI can buy stocks of that company.
Average Interest Rate
Indicates the average interest rate that a company borrows at (Interest Expense/Total Loans).
Book Value Per Share
The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation.
Also: The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.
Bonus
An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.
BSE
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875.
BSE Code
Unique Identification for a company, traded in Bombay Stock Exchange (BSE), given by BSE.
52 Week High/Low
Highest & lowest trading price of a particular share in particular exchange in the last 52 weeks.
Debt To Equity
A measure of a company's financial leverage calculated by dividing the debt to the share capital plus reserves and surplus (Net worth).
Dividend Pay-out Ratio
Indicates the proportion of earnings that are used to pay dividends to shareholders (Yearly Dividend per Share/ Earnings per Share).
Domestic Holdings
Equity shares hold by investors of Indian origin.
EPS
Abbreviation for Earning Per Share. It measures the profit available to the equity shareholders on a per share basis. It is calculated by dividing the Net Profit with number of outstanding equity shares.
Face Value
It is the original cost of the stock shown on the certificate.
FII Holdings
FII is abbreviation for Foreign Institutional Investors. It defines the equity shares hold by companies having origin outside India as an investor in Indian company.
Future Allowed
If exchange allows the future contract in for a stock. A Future contract obligating the buyer to purchase an share (or the seller to sell an share), at a predetermined future date and price.
GPM
Indicates what the company's pricing policy is and what the true mark-up margins are.
= (Revenue - Cost of Goods Sold)/Revenue
Incorporation Date
Company's date of origin.
Interest Coverage Ratio
A ratio used to determine how easily a company can pay interest on outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period.
ISIN
Abbreviation for International Securities Identification Number. A code that uniquely identifies a specific securities issue. The organization that allocates ISIN in any particular country is the National Numbering Agency (NNA). First two characters of ISIN represent country and for India it is IN.
Margins Allowed
Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally. Margin allowed means if Stock Exchange allows brokers to lend money for a particular company's stock. Generally stock exchange allows company's with sound fundamentals to be trades in margin segment.
Net Profit
It measures the overall efficiency of production, administration, selling, financing, pricing and tax management.
NSE Code
Unique Identification for a company, traded in National Stock Exchange (NSE), given by NSE.
Operating Margins
A ratio used to measure a company's pricing strategy and operating efficiency. And it is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production, such as wages, raw materials, etc .A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
Operational Profit
Income from a company?s ordinary business activities which excludes depreciation, interest and income tax expenses. Also known as Earnings before depreciation, interest and taxes (EBDIT).
Options Allowed
Option is a privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date. Traders use options to speculate, which is a relatively risky practice, while hedger use options to reduce the risk of holding an asset. Options Allowed means, if stock exchange allowed option contract in a particular company.
PE
Abbreviation for Price-Earnings. It indicates a valuation ratio of a company's current share price compared to its per-share earnings. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, or to the market in general, or against the company's own historical P/E.
The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed. (source:Investopedia)
Profit Before Tax
A profitability measure that looks at a company's profits before the company has to pay corporate income tax. This measure deducts all expenses from revenue including interest expenses and operating expenses, but it leaves out the payment of tax. Also referred to as "earnings before tax ".
Promoters Holdings
Promoter are understood to be usually those who, in bringing into existence a company or converting their private business into a company, secure control of the management of such company through shareholding and/or otherwise. Promoters are therefore those who control the formation and future of the company. Promoter holdings indicate the % of equity share with promoter. His holdings might be less then 50% at any time.
Return On Capital Employed - ROCE
A ratio that indicates the efficiency and profitability of a company's capital investments.
Calculated as=EBIT/(fixed assets + current assets - current liabilities )
Return on Investment (ROI)
Indicates what return a company is generating on the firm's investments/assets.
Calculated by =Net Profit/Total Assets
Rights
A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire.
RONW
Abbreviation for Return On Net Worth: Ratio of net income after taxes to total end of the year net worth. This ratio indicates the return on stockholder's total equity.
Split
The dividing of a company's existing stock into multiple shares. In a 2-for-1 split, each stockholder receives an additional share for each share he or she holds.
Trade Segment
Trade segment is a way for classifying stock by exchange. Stock exchanges have different settlement cycles based on trade segments. e.g. Rolling trade segment will have some dates for security to be submitted to exchange (for stocks you sold) and dates for money to be submitted (for stocks you bought). Hence any stock falling in Rolling trade segment has to follow those paying and payout dates. In other words different trade segments have different rules for settlement.
