What the words mean

Share market and money words, explained simply. Tap a topic or search. Switch your language in the menu for Hindi meanings.

58 words

52-week high and low#: Highest and lowest price in the last 52 weeks.
Asset allocation#: How your money is divided between shares, bonds (debt) and gold. It matters more to your results than picking any single stock.
Bid, ask and spread#: The bid is the highest price a buyer offers, the ask is the lowest a seller wants. The gap between them is the spread, a small hidden cost of trading.
Brokerage and charges#: Brokerage, STT, exchange, SEBI, stamp duty and GST — simulated like a real broker.
Bull and bear market#: A bull market is a long rise in prices and a hopeful mood. A bear market is a long fall (often 20% or more) and a fearful mood.
CAGR#: Compound Annual Growth Rate — the steady yearly rate that would take an investment from its start value to its end value.
Candlestick chart#: A chart where each bar (candle) shows the open, high, low and close of one period. Green usually means the price closed higher, red lower.
Circuit limit#: The most a share's price may rise or fall in one day. When it hits the limit, trading in it pauses or stops for the day. It protects against wild swings.
CNC (delivery)#: Cash and Carry — delivery/long-term. You pay the full amount and keep the shares as holdings.; See also: MIS (intraday)
Compounding#: Earning returns on your earlier returns. Over many years it makes money grow faster and faster, which is why starting early matters.
Demat account#: An account that holds your shares electronically, like a bank account holds money. Here your practice shares sit in a virtual one.
Derivative#: A contract whose value comes from something else, like a share or an index. Futures and options are derivatives. They can multiply gains and losses.
Diversification#: Spreading your money across different kinds of investments so one bad one does not hurt you too much. Not all eggs in one basket.
Dividend#: A share of a company's profit paid to its shareholders, usually in cash. Not every company pays one.
Emergency fund#: Money kept safe and easy to reach to cover 3–6 months of expenses if you lose income or face a surprise bill. Build it before taking investment risk.
EPS#: Earnings per share — the company's profit divided by its number of shares.
ETF#: Exchange-Traded Fund — a basket of shares or gold that trades on the exchange like a single share, usually at low cost.
Expiry#: The last day a futures or options contract is valid. After that it ends and is settled.
Futures#: A contract to buy or sell something at a fixed price on a fixed future date. You profit or lose as the price moves, and the amounts are big compared with the money you put up.
GTT#: Good Till Triggered — a standing instruction that places an order when price hits your trigger, valid for 1 year.
Index (Nifty 50, Sensex)#: A single number that tracks a group of shares, so you can see how the market as a whole is doing. Nifty 50 follows 50 large companies; Sensex follows 30.
Inflation#: The steady rise in prices. It means the same money buys less each year, so savings need to grow faster than inflation to keep their worth.
IPO#: Initial Public Offering — the first time a company sells its shares to the public so they can be traded on an exchange.
KYC#: Know Your Customer — proving who you are (for example with Aadhaar and PAN) before you can invest. It helps stop fraud and money laundering.
Leverage#: Controlling a bigger position than your own money by borrowing or using margin. It magnifies profit and loss alike.
Limit order#: Limit order — executes only at your price or better.; See also: Market order
Liquidity#: How quickly you can turn something into cash without losing value. Savings are very liquid; property is not.
Lock-in#: Lock-in — units can't be sold until this period ends.
Lot size#: The fixed number of units you must trade in one futures or options contract. You cannot trade less than one lot.
LTCG#: Long-term capital gains — profit on shares held more than 12 months.; See also: STCG
LTP#: Last traded price — the price of the most recent trade.
Margin#: Money set aside (blocked) to cover an open order or position.
Market capitalisation#: What the whole company is worth on the market: share price × number of shares. It is used to call companies large-cap, mid-cap or small-cap.
Market order#: Market order — executes immediately at the current price.; See also: Limit order
MIS (intraday)#: Margin Intraday Squareoff — buy and sell the same day with leverage. Auto-closed before market close.; See also: CNC (delivery), Margin
Mutual fund#: A pool of many people's money run by a professional manager who invests it in shares, bonds or gold. You own units of the pool.; See also: NAV, ETF
NAV#: Net Asset Value — the price of one unit of a mutual fund, worked out at the end of each day.
Net worth#: Everything you own minus everything you owe. It is the real picture of your money, and it should grow over the years.
OCO#: One Cancels Other — a target and a stop-loss; when one triggers the other is cancelled.
Option (call and put)#: The right, not the duty, to buy (call) or sell (put) at a fixed price before a date. You pay a price, the premium, for that right.; See also: Strike price, Expiry
P/E ratio#: Price divided by earnings per share. It tells you how many rupees investors pay for each rupee the company earns in a year. A high P/E means high expectations.
P&L#: Profit and loss.
Risk profile#: How much ups and downs you can handle, both emotionally and financially. It guides how much of your money suits shares versus safer choices.; See also: Asset allocation
Round-ups#: Round-ups — each buy is rounded up and the spare change is invested for you.
SEBI#: Securities and Exchange Board of India — the regulator that makes the rules for markets and protects investors.
Share (stock, equity)#: A small slice of ownership in a company. If the company grows and earns more, the value of your slice can rise; if it struggles, it can fall.; See also: Dividend, Market capitalisation
Short selling#: Selling first and buying later, hoping the price falls. If the price rises instead, the loss can be large, so it is risky.
SIP#: Systematic Investment Plan — invest a fixed amount automatically every day, week or month.; See also: Compounding, NAV
Square-off#: Closing a position by doing the opposite trade: selling what you bought, or buying back what you sold.
STCG#: Short-term capital gains — profit on shares held 12 months or less.; See also: LTCG
Stock exchange (NSE, BSE)#: A regulated marketplace where buyers and sellers trade shares. India's two big ones are the NSE and the BSE.
Stop-loss#: Stop-loss — an order that activates when price crosses your trigger, to limit losses.
Strike price#: The fixed price written into an option at which you may buy or sell.
STT#: Securities Transaction Tax — a small tax charged when you buy or sell shares on an exchange.
Support and resistance#: Support is a price level where a falling share often stops falling. Resistance is a level where a rising share often stops rising. They are patterns, not promises.
Volatility#: How much and how fast a price moves up and down. High volatility means bigger swings, so more risk and more chance.
Volume#: How many shares changed hands in a day. High volume means many people are trading it, so it is easier to buy or sell.
XIRR#: XIRR — your annualised return, accounting for when you added or withdrew money.

What the words mean

Share market and money words, explained simply. Tap a topic or search. Switch your language in the menu for Hindi meanings.

58 words

52-week high and low#: Highest and lowest price in the last 52 weeks.
Asset allocation#: How your money is divided between shares, bonds (debt) and gold. It matters more to your results than picking any single stock.
Bid, ask and spread#: The bid is the highest price a buyer offers, the ask is the lowest a seller wants. The gap between them is the spread, a small hidden cost of trading.
Brokerage and charges#: Brokerage, STT, exchange, SEBI, stamp duty and GST — simulated like a real broker.
Bull and bear market#: A bull market is a long rise in prices and a hopeful mood. A bear market is a long fall (often 20% or more) and a fearful mood.
CAGR#: Compound Annual Growth Rate — the steady yearly rate that would take an investment from its start value to its end value.
Candlestick chart#: A chart where each bar (candle) shows the open, high, low and close of one period. Green usually means the price closed higher, red lower.
Circuit limit#: The most a share's price may rise or fall in one day. When it hits the limit, trading in it pauses or stops for the day. It protects against wild swings.
CNC (delivery)#: Cash and Carry — delivery/long-term. You pay the full amount and keep the shares as holdings.; See also: MIS (intraday)
Compounding#: Earning returns on your earlier returns. Over many years it makes money grow faster and faster, which is why starting early matters.
Demat account#: An account that holds your shares electronically, like a bank account holds money. Here your practice shares sit in a virtual one.
Derivative#: A contract whose value comes from something else, like a share or an index. Futures and options are derivatives. They can multiply gains and losses.
Diversification#: Spreading your money across different kinds of investments so one bad one does not hurt you too much. Not all eggs in one basket.
Dividend#: A share of a company's profit paid to its shareholders, usually in cash. Not every company pays one.
Emergency fund#: Money kept safe and easy to reach to cover 3–6 months of expenses if you lose income or face a surprise bill. Build it before taking investment risk.
EPS#: Earnings per share — the company's profit divided by its number of shares.
ETF#: Exchange-Traded Fund — a basket of shares or gold that trades on the exchange like a single share, usually at low cost.
Expiry#: The last day a futures or options contract is valid. After that it ends and is settled.
Futures#: A contract to buy or sell something at a fixed price on a fixed future date. You profit or lose as the price moves, and the amounts are big compared with the money you put up.
GTT#: Good Till Triggered — a standing instruction that places an order when price hits your trigger, valid for 1 year.
Index (Nifty 50, Sensex)#: A single number that tracks a group of shares, so you can see how the market as a whole is doing. Nifty 50 follows 50 large companies; Sensex follows 30.
Inflation#: The steady rise in prices. It means the same money buys less each year, so savings need to grow faster than inflation to keep their worth.
IPO#: Initial Public Offering — the first time a company sells its shares to the public so they can be traded on an exchange.
KYC#: Know Your Customer — proving who you are (for example with Aadhaar and PAN) before you can invest. It helps stop fraud and money laundering.
Leverage#: Controlling a bigger position than your own money by borrowing or using margin. It magnifies profit and loss alike.
Limit order#: Limit order — executes only at your price or better.; See also: Market order
Liquidity#: How quickly you can turn something into cash without losing value. Savings are very liquid; property is not.
Lock-in#: Lock-in — units can't be sold until this period ends.
Lot size#: The fixed number of units you must trade in one futures or options contract. You cannot trade less than one lot.
LTCG#: Long-term capital gains — profit on shares held more than 12 months.; See also: STCG
LTP#: Last traded price — the price of the most recent trade.
Margin#: Money set aside (blocked) to cover an open order or position.
Market capitalisation#: What the whole company is worth on the market: share price × number of shares. It is used to call companies large-cap, mid-cap or small-cap.
Market order#: Market order — executes immediately at the current price.; See also: Limit order
MIS (intraday)#: Margin Intraday Squareoff — buy and sell the same day with leverage. Auto-closed before market close.; See also: CNC (delivery), Margin
Mutual fund#: A pool of many people's money run by a professional manager who invests it in shares, bonds or gold. You own units of the pool.; See also: NAV, ETF
NAV#: Net Asset Value — the price of one unit of a mutual fund, worked out at the end of each day.
Net worth#: Everything you own minus everything you owe. It is the real picture of your money, and it should grow over the years.
OCO#: One Cancels Other — a target and a stop-loss; when one triggers the other is cancelled.
Option (call and put)#: The right, not the duty, to buy (call) or sell (put) at a fixed price before a date. You pay a price, the premium, for that right.; See also: Strike price, Expiry
P/E ratio#: Price divided by earnings per share. It tells you how many rupees investors pay for each rupee the company earns in a year. A high P/E means high expectations.
P&L#: Profit and loss.
Risk profile#: How much ups and downs you can handle, both emotionally and financially. It guides how much of your money suits shares versus safer choices.; See also: Asset allocation
Round-ups#: Round-ups — each buy is rounded up and the spare change is invested for you.
SEBI#: Securities and Exchange Board of India — the regulator that makes the rules for markets and protects investors.
Share (stock, equity)#: A small slice of ownership in a company. If the company grows and earns more, the value of your slice can rise; if it struggles, it can fall.; See also: Dividend, Market capitalisation
Short selling#: Selling first and buying later, hoping the price falls. If the price rises instead, the loss can be large, so it is risky.
SIP#: Systematic Investment Plan — invest a fixed amount automatically every day, week or month.; See also: Compounding, NAV
Square-off#: Closing a position by doing the opposite trade: selling what you bought, or buying back what you sold.
STCG#: Short-term capital gains — profit on shares held 12 months or less.; See also: LTCG
Stock exchange (NSE, BSE)#: A regulated marketplace where buyers and sellers trade shares. India's two big ones are the NSE and the BSE.
Stop-loss#: Stop-loss — an order that activates when price crosses your trigger, to limit losses.
Strike price#: The fixed price written into an option at which you may buy or sell.
STT#: Securities Transaction Tax — a small tax charged when you buy or sell shares on an exchange.
Support and resistance#: Support is a price level where a falling share often stops falling. Resistance is a level where a rising share often stops rising. They are patterns, not promises.
Volatility#: How much and how fast a price moves up and down. High volatility means bigger swings, so more risk and more chance.
Volume#: How many shares changed hands in a day. High volume means many people are trading it, so it is easier to buy or sell.
XIRR#: XIRR — your annualised return, accounting for when you added or withdrew money.