Financial Terms


2-in-1 Account

2 -in-1 account is an online account to invest in stocks, mutual funds,and bonds, etc it is a combination of Demat & trading account opened and linked together for seamless transaction among them.


Abridged Prospectus

Abridged Prospectus contains all the information about a company (general, financial and statutory). It contains details of company shares and prices.

Absolute return

Represent the total gain or loss on your investment without considering the time factor.

Account Closure Charges

Generally,the banks charge a fee for closing the accounts within a year of its opening.

Account Opening Fee

Genrally the banks charge a small fee for opening the accounts in a bank. It depends on the type of account you are opening.


Acquisition means when a company purchases a majority stake in the company or it purchases the whole company.

Actual Cash Value (ACV)

Actual cash value means the amount of repayment for damaged or lost property.


An Actuary is person with advanced maths skills who deals with measurement of uncertainity and risk.

Advance Tax

Advance tax is the income tax which is paid in advance rather than paying a big amount at the year end.


An advisor is a person who has a deep knowledge of a particular area.

Advisory Fee

When we pay an amount for matters related to financial services, money management and investment than that amount we pay is known as advisory fee.

Affiliated enterprises

An Affiliated enterprises means that when parent comapny holds a minority stake in its child enterprises.

After Market Order (AMO)

When we are able to palce orders outside of regular trading hours then this is known as After Market Order (AMO). It’s execution starts once the market is open.


When a company appoints a person to act on their behalf is called a agent.


It is a facility provided to stay updated about the events and opprtunities that come accross your stocks in your portfolio.

Alternative Minimum tax (AMT)

Alternative minimum tax is a minimum amount of tax a person has to pay. If a person pays the tax on income and it is less than the AMT on adjusted income than AMT is levied on adjusted income for financial year.

All-or none order (AON)

AON is a financial term that instructs the broker to place a buy or sell for entire order or do not place the order at all.

American Option

It is a call or puts option that can be used before or after the expiration date.

Anchor Investor

An Anchor investor is a professional buyer who purchases a significant stake in a company before the companies IPO.

Ancillary corporation

It is a subsidiary corporation which is fully owned by parent corporation and it is designed to fully support the parent corporation.

Annual Maintenance Charges (AMC)

An Annual Maintaince Charge (AMC) is a yearly fee charged by banks on debit cards as an ATM sevices fee. The fee is fixed by the bank and the cardholder must pay it every year.

Annual Percentage Rate

Annual percentage rate is the calculation of interest rate and the additional fees charges with a loan.

Annual report

An annual report is a detailed report that shows a company’s operation and financial performance in the preceding 12 months

Annual return

An Annual reprot is the profit or loss over a year.


An Annuity is a contract between insurance company and you. The insurance company needs to pay you immediately or in the coming future.

Annualized return

It refers to how much an investment has given a return over a given period of time.


It means that purchasing an asset from one market and selling the assest into another market.


Its full form is Application Supported by Blocked Amount. It is a process to apply for IPO or FPO.

Ask Price

Ask price refers at which seller will sell their stock.

Assessment Year (AY)

The time between 1st April to 31st March in which you are taxed on the money that you receive in a financial year.


Asset is a resource with some value which is owened by a person, company or country in expectation that it will provide some benefit in future.

Asset Allocation

When people divide their portfolio in different categories then it is known as asset allocation.

Asset Class

An asset class is a collection of that exhibit similar traits as well as comparable response to market fluctuation.

Asset Management Company (AMC)

Asset management company invest pooled funds of investors into stock or bonds or both. They are required to stick to the investment objevtive defined in the mandate.

Assets Under Management (AUM)

Asset under management is a term used in finance to refer to the total value of the money being managed by a mutual fund .some invesor tend advise against investing mutual funds that are too large.

Association of Mutual Funds in India (AMFI)

The Association of mutual funds in india (AMIF) is dedicated to developing the indian mutual funds industry on professional , health and ethical lines and to enhance and maintanance of mutual funds and their unit holder.


Assured returns means that you will get the returns which was promised.

At the money

At the money (ATM) descibes a situation when the strike price of an option ie equal to the undrelying asset’s current market.


An at- fault accident is one in which you or your insurance company will be the one to pay for damages.

Average maturity period

Average maturity is the average of all the bonds which are present in portfolio.

Averaging down

Averaging down stocks is when an investor buys share of a stock they already own after a price drop ,thus lowering the average cost per share.



When a market is in contango , the forward price of a furtures contract is higher than the spot price.

Balance Sheet

A balance sheet is a financial statements that contains details of a company’s assets or liabilities at specific point in time.

Balanced funds

Balanced funds, which are a kind of hybrid funds , help an investor diverrsify their portfolio through investment is varied assets classess.

Bear Market

A bear market occurs when the market experiences prolonged price declines. It is usually declared when an investment’s price falls at least 20% from its high.

Bracket Order

Bracket order is done only in intra day trading. Bracket order intermixes buy order with stop loss and target order.


A benchmark is something that acts as a gauge or standard by which other things are evaluated.


When you trade, you can be bearish if you think that a market, asset, or financial instrument will decline in value.


A beneficiary is an individual who has been assigned rights to benefit from another person’s property.


The amount of money a trader is prepared to spend on stock or other asset shares.


An investor must apply for a predetermined number of shares, known as a bid-lot.

Bid Price

A bid price is the amount that someone is prepared to pay for any kind of item, including contracts, securities, assets, commodities, and services.

Bid-Ask Spread

The gap between what buyers are willing to pay and what sellers are asking for a stock is known as the bid-ask spread.


A blockchain is a distributed ledger system that stores records of all Bitcoin and other cryptocurrency transactions across several computers and the whole network of those computers.

Blue Chip Stock

A blue chip stock is a type of stock that is issued by a reputable, large, financially stable, and well-established corporation.


Companies issue bonds, which are traded assets that represent units of corporate debt.

Book Building

In an initial public offering (IPO), an underwriter sets the price at which shares must be sold through a process known as book building.

Book Running Lead Manager

The person in charge of the underwriting process when new shares or securities are issued for their client usually during an IPO is known as the book running lead manager.


In the context of startups, bootstrapping is the process of starting and expanding a company without outside funding.


A person or entity that borrows money is referred to as a borrower.

Break-Even Point

The moment at which total costs and total revenues are equal, or when your business is neither losing money nor making money, is known as the break-even point.

Bridge Loan

A bridge loan is a quick loan that is meant to supply funds right away.


A broker is an individual  that arranges transactions between a seller and a buyer.

Bull Market

When the overall market rises by 20% or more over a minimum of two months, it is referred to as a bull market.


When you trade, you can be bullish if you think that a market, asset, or financial instrument will increase in value.

Burn Rate

The rates at which a startup business decreases its venture capital financing costs before turning a profit on operations is known as the burn rate.


Buy today and sell tomorrow.


Call Option

A call option is an agreement between a seller and a buyer to buy a specific stock at a specific price through an assigned expiration date.

Candlestick Chart

A candlestick is a kind of price chart that shows a security’s high, low, open, and closing prices over a given time period and is used in technical analysis.

Capital Appreciation

An increase in an investment’s market value is referred to as capital appreciation.

Capital Gain

When an asset is sold, the rise in value is referred to as a capital gain.

Capital Gains Taxes

Taxes imposed on an asset’s profit upon sale are known as capital gains taxes.

Capital Loss

A capital loss is the amount of money lost when the value of a capital asset, such real estate or an investment, drops.

Capital Markets

Capital markets provide as an interface for savings and investments between suppliers and people in need.


Capitalization in finance is the total amount of outstanding debt, shares, and retained earnings.

Carried Interest

A portion of the gains from a hedge fund, private equity firm, or venture capital firm are given to the fund’s general partner as incentive pay. This is known as carried interest.


A six-digit special code known as the CDSL TPIN gives a broker permission to take shares out of a client’s Demat account. Transaction Personal Identification Number is commonly referred to as TPIN.

Channel Chart Pattern

The addition of two parallel lines that serve as the zones of support and resistance defines a channel chart pattern.

Channel Finance

When a corporate entity wants to buy products or services from another, channel partners like distributors, dealers, or purchasers can be funded through an innovative working capital loan called channel finance.

Cheque book facility

To make it simple and safe to execute payments or fund transfers, current and overdraft accounts can be connected to check book facilities.


A person who requests money from an insurer in accordance with the provisions of an insurance contract is known as a claimant.