STOCK MARKET TERMS
A – Z
A GROUP SHARES
Stocks which have very high liquidity.
The company has large equity base and
large public holding.
The company has a given consistent good
performance over the years.
B1 GROUP SHARES
Shares have high liquidity.
Company has equity above Rs.30 million.
Company fundamentals and financial
parameters in line with the industry.
B2 GROUP SHARES
Share with low investor interest.
Shares trade below par value (face value).
Company has equity below Rs.30million.
Company's shares are not widely held.
Company has surveillance measure initiated
against it by the EXCHANGES for suspected
Shares have low trading volume at the
A-D INDEX OR
A tool for detecting bullish or bearish trend
in stock market. One divides the number of
traded shares which have risen in price by
those which have fallen.
If 200 shares have advanced and 100
declined on a particular day the A-D INDEX
Number more than 1 indicates a bull trend
and less than 1 a bear trend.
A concept, which measures the inherent
volatility of share.
A share with alpha factor of 1.5 is slated to
rise in price by 50% in a year on its inherent
strength, such as growth in EPS, regardless
of the behavior of the market.
(NAV-face value + dividend paid)/(Face
value * number of years)
Profiting from differences in piece of the
same share traded on two or more stock
An arbitrageur makes money by buying in
lower market and immediately thereafter
selling in the higher market, or vice versa,
thereby making a profit.
A lighthearted approach to the market
behavior which declares that if aspirin
consumption rises in the country, about a
year later the market will fall and vice
ASSET VALUE OR NAV
Term used by mutual funds and other
investment trusts, to indicate the net