Net Market Value (NAV):
The current market price of the units or instruments of a scheme of a mutual fund. Calculated by dividing the assets of the funds by number of outstanding units.

No-delivery period:
Whenever a book closure or record date is announced by a company, the stock exchange sets a no-delivery period for that security. During this period, trading is permitted in that security. However, these trades are settled only after the no-delivery period is over. This is done to make sure that investor’s entitlement for corporate benefits is clearly determined. 

 

Odd lot:
A number of shares that are less than the market lot are known as odd lots. Under the scrip based delivery system, these shares are normally traded at a discount to the prevailing price for the marketable lot.

Option:
The right but not the obligation of the owner to buy or sell the underlying securities before a specified date at a pre determined price.

Order-driven trading:
It is a trading initiated by buy/sell orders from investors/brokers.

Over-the-counter trading:
Trading in those stocks which are not listed on a stock exchange. 

 

Pay-in:
Pay-in day is the designated day on which the securities or funds are paid in by the members to the clearing house of the Exchange.

Pay-out:
Pay-out is the designated day on which securities and funds are delivered / paid out to the members by the clearing house of the Exchange. In rolling settlement scenario, pay-in and pay-out are on the same day.

Price band:
The daily or weekly price limits within which price of a security is allowed to rise or fall.

Price rigging:
When a person or persons acting in concert with each other collude to artificially increase or decrease the prices of a security, that process is called price rigging.

Primary Market:
The market for issue of fresh shares by a company. 

 

Global Depository Receipts (GDRs):
Any instrument in the form of a certificate or depository receipt created outside India and issued to non resident investors.

Good-bad delivery:
A share certificate together with its transfer form which meet all the requirements of title transfer from seller to buyer is called good delivery in the market. Delivery of a share certificate, together with a deed of transfer, which does not meet requirements of title transfer from seller to buyer is called a bad delivery in the market. 

Insider trading:
Trading in a company’s shares by a connected person having non-public, price sensitive information, such as expansion plans, financial results, takeover bids, etc., by virtue of his association with that Company, is called insider trading. In most markets, insider trading is illegal and violation of securities laws.

Jumbo certificate:
A jumbo share certificate is a single composite share certificate formed by consolidating/ aggregating a large number of market lots.  

 Limit Order:
A buy or sale order which would be executed only after reaching the stated price or at a better price than that. 

Long Position:
A position indicating purchase of a security in anticipation of a rise in price. 

Lower Circuit
The lower limit upto which price of a security may fall in a day as fixed by the stock exchange.

Market Capitalization:
Market capitalization is calculated by multiplying the issued number of shares of a company with its current market price.

Market lot:
Market lot is the minimum number of shares of a particular security that must be transacted on the stock exchange. Multiples of the market lot may also be transacted. In Demat Scrips the market lot is 1 share.

Mutual Funds:
Pooling of resources by a number of investors by issuing them units and investing the funds in securities as per the objective of the scheme as disclosed in the offer document to investors.