Stock Market Glossary

The highest price at which a dealer is willing to buy Shares

In order to facilitate execution of large trades, a separate trading window is provided. A trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs.5 crore executed through a single transaction on this separate window of the stock exchange will constitute a ‘Block Deal’

Stocks of large, well-established and financially-sound companies which hold a record of consistently increasing rate of paying the dividends over decades to its stock holders. Blue chip stocks typically have a market capitalization in thousands of crores

Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time.

Bonus Issue is vesting free additional shares to existing shareholders in proportion to existing shareholding pattern. Issue of Bonus shares increases the total number of shares issued and owned.

Book closure and record date help a company determine exactly the shareholders of a company as on a given date. Book closure refers to the closing of the register of the names of investors in the records of a company. Companies announce book closure dates from time to time.

A market in which the stock price are increasing consistently.

A buyback can be seen as a method for company to invest in itself by buying shares from other investors in the market. Buybacks reduce the number of shares outstanding in the market.

An option that is given to investor the right but not obligation to buy a particular stock at a specified price within a specified time period.

To an economist, capital means machinery, factories and inventory required to produce other products. To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets.

Profit or loss resulting from the sale of certain assets classified under the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property.

The final price at which the stock is traded on a given particular trading day