Stock Market Glossary

The closure of beneficiary and pool accounts by the investor and the clearing member or at the discretion of the participant, if the client has defaulted in its obligations towards the participant.

A current liability showing the amounts due to others within a period of one year when such liability resulted from the purchase or manufacturing of inventory.

Any money due to a business for merchandise or securities that it has sold or for services it has rendered. This is a key determinant in analyzing a company’s liquidity.

A description applicable to a range of instruments, e.g. caps, swaps, collars and swaptions, where the notional amount on which the instrument is based increases successively during its life.

Accrued interest stands for the interest that has been earned but not collected. This generally happens because of difference in the accounting cycle and cash flow cycle.

The value of cash equivalents and accounts receivable (the quick assets) divided by current liabilities. Also known as quick asset ratio or liquidity ratio, it is a measurement of corporate liquidity.

Any individual/company/any other legal entity, which intends to acquire or acquires substantial quantity of shares or voting rights of target company or acquires or agrees to acquire control over the targetcompany along with the persons acting in concert.

A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

Investment companies and the fund sponsors do manage some funds in an effort to generate higher returns over the Index managed funds. The funds managed are known as actively managed funds.

Margin collected by the Stock Exchange from the members having unduly large outstanding position or the margin levied on volatile scrips based on adhoc basis keeping in view the risk perspective.