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Click over any alphabet to get a partial list of terms or click over 'Full List' to get complete list of terms on one page. A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z Full List |
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Odd lot The purchase or sale of shares in quantities other than their marketable lot is considered an odd lot. In the physical segment, if you buy or sell odd lots, you may pay a slightly higher commission than someone trading normal lots, generally in multiples of 100 or 50 shares. With the introduction of electronic trading in dematerialized form the concept of Odd lot has become redundant as you can buy and sell in any quantity. Offering price When a security, such as a shares, is offered for sale to the public for the first time, or a publicly traded company issues new shares, the initial price per share fixed is known as the offering price or the public offering price. When the share begins to trade, its market price may be higher or lower than the offering price. Online brokerage firm To buy and sell securities over the Internet, you can set up an account with an online brokerage firm. The firm executes your orders and confirms them electronically, though you may have to mail the firm a check to settle your transaction. Online trading If you trade online, you use a computer and an Internet connection to place your buy and sell orders with an online brokerage firm. While the orders you give online are executed while the markets are open, you may have the option of placing orders at your convenience, outside of normal trading hours. Open Order An order to buy and sell a security that remains in effect until it is either cancelled by the customer or executed. Open outcry When someone who shouts an offer to buy and someone who shouts an order to sell name the same price, a deal is struck, and the trade is recorded. This interaction is described as open outcry. Prior to introduction of online trading, the Indian market had an open outcry system. Opening Price The first transaction in each security or commodity when trading begins for the day occurs at what's known as its opening, or opening price. Sometimes the opening price on one day is the same as the closing price the night before. But that's not always the case Operating Income Net Sales less cost of sales, selling expenses, administrative expenses and depreciation is operating income. The pre-tax income from normal operations. Option Buying an option gives you the right to buy or sell a specific financial instrument at a specific price, called the strike price, during a preset period of time. In the U.S., you can buy or sell options on individual stocks, stock indexes, futures contracts, currencies, and Treasury security interest rates. If you buy an option to buy, which is known as a call, you pay a one-time premium that's a fraction of the cost of the actual transaction. For example, you might buy a call option giving you the right to buy 100 shares of a particular stock at a strike price of Rs.80 a share when that stock is trading at Rs.75 a share. If the price goes higher than the strike price, you can exercise the option and buy the stock, or trade the option to someone else at a profit. If the stock price doesn't go higher than the strike price, you don't exercise the option, and it expires. Your only cost is the money that you paid for the premium. Similarly, you may buy a put option, which gives you the right to sell the underlying instrument to the person who sold the option. In this case, you exercise the option if the market price drops below the strike price. In contrast, if you sell a put or call option, you collect a premium and must be prepared to buy or sell the underlying instrument if the investor who bought the option decides to exercise it. Outstanding shares In the U.S., the number of shares that a corporation has issued are described as its outstanding or existing shares. A corporation's market capitalization is figured by multiplying its outstanding shares by the market price of a share. The number of outstanding shares is also used to derive all of the financial information that's provided on a per-share basis, such as earnings per share or sales per share. Overbought When a share or a securities market as a whole, rises so steeply in price that technical analysts think that buyers are unlikely to push the price up further, the analysts consider the stock or the market to be overbought. For these analysts, an overbought market is a warning sign that a correction — or rapid price drop — is likely to occur. Oversold A share, a market sector, or an entire market may be described as oversold if it drops suddenly and dramatically in price, despite the fact that the country's economic outlook remains positive. For technical analysts, an oversold market is poised for a price rise, since there would be few sellers left to push the price down further. |