Reference
Investors Encyclopedia
2,004money & markets terms explained in plain English — investing, F&O, mutual funds and personal finance, with India context. Search or browse by topic and letter.
2,004 terms · showing first 240, refine to narrow
1% TDS on CryptoPersonal FinanceIndia levies a 1% tax deducted at source on the transfer of virtual digital assets above specified thresholds, creating an audit trail of crypto transactions. This is informational, not advice.30% Crypto Tax (India)Personal FinanceIndia taxes income from transferring virtual digital assets at a flat 30% rate, with no deductions other than cost of acquisition and no set-off of losses. This is informational, not advice.52-Week High/LowInvesting & StocksThe 52-week high and low are the highest and lowest prices at which a stock has traded over the past year.AAA / Investment GradeMutual FundsAAA is the highest credit rating, signalling the strongest ability to repay debt on time; investment grade spans ratings from BBB- and above, deemed reasonably safe.Abridged ProspectusInvesting & StocksAn abridged prospectus is a short, summarised version of the full prospectus that must accompany every IPO application form.Absolute AdvantageMutual FundsAbsolute advantage is the ability to produce a good using fewer resources than another producer, distinct from comparative advantage, which is based on opportunity cost.AcceleratorInvesting & StocksAn accelerator is a fixed-term, cohort-based programme that gives early startups mentorship, resources and often a small investment for equity.Account Aggregator (AA)Personal FinanceThe Account Aggregator framework is an RBI-regulated, consent-based system that lets you securely share your financial data from one institution with another through a licensed intermediary.Accruals (Accounting)Investing & StocksAccruals are revenues earned or expenses incurred that are recognised in the accounts before the related cash is received or paid, following accrual accounting.Accrual Strategy (Debt)Mutual FundsAn accrual strategy in debt funds aims to earn steady interest (coupon) income by buying bonds and holding them to maturity, rather than profiting from movements in interest rates.Accrued InterestMutual FundsAccrued interest is the interest a bond has earned since its last coupon payment but not yet paid out, which the buyer reimburses to the seller when a bond changes hands mid-cycle.Action BiasPersonal FinanceAction bias is the tendency to feel compelled to 'do something' — to trade or tinker — especially in volatile markets, even when doing nothing would serve you better.ActuaryPersonal FinanceAn actuary is a professional who applies mathematics, statistics and financial theory to price insurance, value liabilities and assess long-term risk.Additional Surveillance Measure (ASM)Investing & StocksASM is a SEBI and exchange framework that flags stocks showing abnormal price or volume activity and applies extra surveillance and trading curbs to protect investors.Add-On CoverPersonal FinanceAn add-on (or rider) cover is an optional enhancement bought with a base policy to widen protection for an extra premium.Adjusted Book ValueInvesting & StocksAdjusted book value is a bank's reported net worth reduced by its unprovided net NPAs and other expected losses, giving a more conservative measure of true equity.Adjusted Net Bank Credit (ANBC)Investing & StocksAdjusted Net Bank Credit is the base on which a bank's priority sector lending targets are calculated, derived from its net bank credit with certain adjustments.Adjustment (Options)Futures & OptionsAn adjustment is modifying an existing option position — rolling, adding, or hedging legs — to manage risk as the market moves.Advance Ruling (Tax)Personal FinanceAn advance ruling is a binding determination obtained from a designated authority on the tax treatment of a proposed transaction, before it is undertaken.Advances (Banking)Investing & StocksAdvances are the loans a bank extends to borrowers, forming the main interest-earning asset on its balance sheet.Advance TaxPersonal FinanceAdvance tax is income tax paid in instalments during the financial year as income is earned, rather than in a lump sum after the year ends.Advance Tax for FreelancersPersonal FinanceAdvance tax is income tax paid in instalments through the year rather than as a lump sum at filing; freelancers must pay it once their annual tax liability crosses a threshold.Adverse SelectionPersonal FinanceAdverse selection is the tendency for higher-risk individuals to seek insurance more eagerly than lower-risk ones, skewing the risk pool.Adverse Selection (Trading)Investing & StocksAdverse selection in trading is the risk that the counterparty filling your resting order knows something you don't, so liquidity providers are systematically picked off just before the price moves against them.ADXFutures & OptionsADX (Average Directional Index) measures the strength of a trend, regardless of its direction.After-Market Order (AMO)Investing & StocksAn after-market order is an order placed outside regular trading hours that is queued by the broker and submitted to the exchange when the market next opens.Aggressive Hybrid FundMutual FundsAn aggressive hybrid fund holds 65-80% in equities and 20-35% in debt, offering an equity-tilted balanced portfolio in a single product.Agri Commodity FuturesInvesting & StocksAgri commodity futures are exchange-traded contracts on farm goods such as soybean, cotton, guar, castor and spices, used mainly on NCDEX to manage price risk and discover fair prices.AirdropPersonal FinanceAn airdrop is a distribution of free crypto tokens to wallet holders, often to promote a project or reward early users; received tokens can have tax implications in India. This is informational.Algorithmic TradingInvesting & StocksAlgorithmic trading is the use of computer programs that follow pre-defined rules on price, timing, quantity and other variables to place and manage orders automatically, with little or no human intervention per order.AlphaMutual FundsAlpha is the risk-adjusted return a fund earns over and above its benchmark; positive alpha indicates the manager added value beyond market movement.Alpha DecayInvesting & StocksAlpha decay is the gradual erosion of a strategy's edge over time as the market becomes more efficient, the signal is arbitraged away, or the strategy becomes crowded.Alpha vs Beta SeparationInvesting & StocksAlpha-beta separation is the framework of distinguishing returns earned from broad market exposure (beta) from returns earned through skill or unique strategies (alpha), and managing each independently.Alternate Minimum Tax (AMT)Personal FinanceAlternate Minimum Tax is the equivalent of MAT for non-corporate taxpayers, ensuring that firms and individuals claiming certain deductions still pay a minimum tax.Alternative Investment Fund (AIF)Investing & StocksAn Alternative Investment Fund is a SEBI-regulated privately pooled vehicle for sophisticated investors, classified into Category I, II and III with high minimum investment thresholds.AMC (Asset Management Company)Mutual FundsAn AMC is the SEBI-registered company that manages a mutual fund's schemes, making the investment decisions and running day-to-day operations on behalf of unit holders.American Depositary Receipt (ADR)Investing & StocksAn ADR is a US-listed certificate issued by an American bank that represents shares of a foreign company, letting US investors trade overseas firms in dollars on US exchanges.AMFIMutual FundsAMFI is the Association of Mutual Funds in India, the industry body for asset management companies that sets standards and promotes investor awareness.AmortisationInvesting & StocksAmortisation is the systematic write-off of the cost of an intangible asset, such as software, patents or goodwill, over its useful life.Analysis ParalysisPersonal FinanceAnalysis paralysis is when too many options and too much information leave you so overwhelmed that you delay or avoid making a financial decision.Ancestral PropertyPersonal FinanceAncestral property is property inherited up to four generations of male lineage in a Hindu family, in which descendants acquire a right by birth.Anchored Net Worth TargetsPersonal FinanceAnchored net worth targets are round-number wealth goals (like reaching a crore) that can distort financial behaviour when pursued for their own sake.Anchoring BiasPersonal FinanceAnchoring bias is the tendency to lean too heavily on the first piece of information you see — the 'anchor' — when making a financial decision, even when that number is irrelevant.Anchoring in Salary NegotiationPersonal FinanceAnchoring in salary negotiation is the way the first number mentioned — often your current or expected pay — sets the reference point that shapes the final offer.Anchoring to NAVPersonal FinanceAnchoring to NAV is the mistaken belief that a mutual fund with a low net asset value is 'cheaper' or better value than one with a high NAV.Anchoring to Purchase PricePersonal FinanceAnchoring to purchase price is the specific bias of fixating on what you paid for an investment, letting that number drive decisions to hold or sell.Anchor InvestorInvesting & StocksAnchor investors are large institutional investors who are allotted IPO shares a day before the issue opens to the public, lending credibility to the offering.Anchor Lock-inInvesting & StocksAnchor lock-in is the mandatory holding period during which anchor investors in an IPO cannot sell their allotted shares, designed to protect retail investors from sudden post-listing selling.Anchor Lock-in ExpiryInvesting & StocksAnchor lock-in expiry is when the shares allotted to anchor investors in an IPO become free to sell, often creating selling pressure.Angel InvestorInvesting & StocksAn angel investor is a wealthy individual who invests their own money in very early-stage startups, usually in exchange for equity or convertible securities.Angel TaxPersonal FinanceAngel tax is the tax on the premium that an unlisted company receives when it issues shares above their fair value, historically a pain point for startups.Annual General Meeting (AGM)Investing & StocksAn AGM is the yearly meeting at which a company's shareholders vote on key matters such as accounts, dividends and director appointments.Annual Information Statement (AIS)Personal FinanceThe AIS is a comprehensive statement of a taxpayer's financial transactions reported to the tax department, used to help file accurate returns.Annual Information Statement (AIS) DetailPersonal FinanceThe Annual Information Statement is a comprehensive summary of a taxpayer's financial transactions reported to the tax department, used to pre-fill and cross-check returns.Annual Percentage Rate (APR)Personal FinanceAPR is the true annual cost of a loan, including interest and most fees, expressed as a single percentage for easy comparison.Annual Recurring Revenue (ARR)Investing & StocksARR is the predictable, recurring revenue a subscription business expects to earn over a year from its contracts.AnnuityPersonal FinanceAn annuity is a financial product that pays a regular income stream, typically for life, in exchange for a lump sum — used mainly to secure income in retirement.Annuity CertainPersonal FinanceAn annuity certain pays a fixed income for a guaranteed number of years regardless of whether the annuitant survives the full period.Annuity Due vs Ordinary AnnuityPersonal FinanceAn ordinary annuity pays at the end of each period, while an annuity due pays at the beginning — a timing difference that changes its value.Annuity RatePersonal FinanceThe annuity rate is the amount of regular income an annuity pays per unit of purchase price, fixed at the time of buying an immediate annuity.Anti-Dilution ProvisionInvesting & StocksAn anti-dilution provision protects an investor from value erosion if the company later raises money at a price lower than what the investor paid.Anti-Dumping DutyPersonal FinanceAnti-dumping duty is a protective levy imposed on imports priced below their normal value to shield domestic industry from unfair foreign competition.API BankingPersonal FinanceAPI banking lets businesses and fintechs connect to a bank's services programmatically through application programming interfaces to enable payments, account opening and data flows.API TradingInvesting & StocksAPI trading is the placement and management of orders programmatically through a broker's application programming interface, enabling automated and algorithmic strategies without manual screen-based input.Appreciation vs DepreciationInvesting & StocksAppreciation is a market-driven rise in a currency's value and depreciation a fall, both occurring under a floating or managed-float regime, as distinct from a deliberate revaluation or devaluation by authorities.Appropriation BillMutual FundsThe Appropriation Bill is the law that authorises the government to withdraw money from the Consolidated Fund of India to meet the expenditure approved in the Budget.APRPersonal FinanceThe Annual Percentage Rate expresses the total yearly cost of a loan — interest plus mandatory fees — as a single percentage, enabling apples-to-apples comparison of credit offers.Arbitrage FundMutual FundsAn arbitrage fund profits from price gaps between the cash and futures markets, aiming for low-risk, debt-like returns while enjoying the tax treatment of an equity fund.Arm's Length PrinciplePersonal FinanceThe arm's length principle requires that transactions between related parties be priced as if they were between independent, unrelated parties.Arogya SanjeevaniPersonal FinanceArogya Sanjeevani is IRDAI's standardised basic health insurance product with common features offered by all general and health insurers.Arrival PriceInvesting & StocksArrival price is the prevailing market price at the moment a trading decision is made and the order arrives at the desk, used as the reference point for measuring implementation shortfall.ASBAInvesting & StocksASBA (Application Supported by Blocked Amount) is the mechanism where IPO application money stays blocked in the investor's bank account until shares are allotted.Asset AllocationPersonal FinanceAsset allocation is the decision of how to divide your portfolio among major asset classes — such as equity, debt, gold and cash — based on your goals, horizon and risk tolerance.Asset Allocation FundMutual FundsA multi-asset allocation fund is a hybrid mutual fund that, per SEBI rules, spreads money across at least three asset classes — typically equity, debt and gold — with a minimum 10% in each, packaging diversification into a single product.Asset-Liability MatchingPersonal FinanceAsset-liability matching is the practice of aligning the timing and risk of your investments with the timing of the expenses (liabilities) they are meant to fund.Asset-Liability MismatchInvesting & StocksAn asset-liability mismatch arises when the maturity or repricing profile of a lender's assets differs from that of its liabilities, creating liquidity or interest-rate risk.Asset MonetisationPersonal FinanceAsset monetisation is the practice of leasing or transferring the operating rights of existing public assets to private players to raise upfront capital without selling ownership.Asset Reconstruction Company (ARC)Mutual FundsAn Asset Reconstruction Company buys bad loans from banks at a discount and works to recover or restructure them, helping clean up bank balance sheets.Assignment of PolicyPersonal FinanceAssignment is the legal transfer of the rights, title and interest in a life insurance policy from the policyholder to another person or entity.Assignment (Options)Futures & OptionsAssignment is when an option seller is obligated to fulfil the contract because the buyer has exercised it.AT1 Bonds (Additional Tier 1)Investing & StocksAT1 bonds are perpetual, loss-absorbing instruments that count as Additional Tier 1 capital for banks and can be written down or have coupons skipped under stress.Atal Pension YojanaPersonal FinanceAtal Pension Yojana is a government-backed pension scheme for workers, mainly in the unorganised sector, offering a guaranteed minimum pension after age sixty.Atal Pension Yojana (APY)Personal FinanceAPY is a government pension scheme aimed at workers in the unorganised sector, guaranteeing a fixed monthly pension after 60.Atmanirbhar BharatPersonal FinanceAtmanirbhar Bharat is the government's self-reliant India policy thrust aimed at boosting domestic manufacturing, reducing import dependence and supporting local industry.At the Money (ATM)Futures & OptionsAn at-the-money option has a strike price equal to, or closest to, the current price of the underlying.Auction MarketInvesting & StocksAn auction market is a trading mechanism in which buy and sell orders are accumulated and matched at a single clearing price that maximises executable volume, rather than continuously matching as orders arrive.Auction SettlementInvesting & StocksAuction settlement is the exchange process of buying in shares to resolve a short delivery, where the clearing corporation auctions the failed quantity and delivers the purchased shares to the affected buyer.Audit CommitteeInvesting & StocksThe audit committee is a board sub-committee that oversees financial reporting, internal controls, audits and related-party transactions.Auditor's ReportInvesting & StocksThe auditor's report is the independent auditor's formal opinion on whether a company's financial statements give a true and fair view and comply with accounting standards.AUM (Assets Under Management)Mutual FundsAUM is the total market value of all the money a fund or fund house manages on behalf of investors.Authorised ParticipantMutual FundsAn authorised participant is a large institutional intermediary contracted with an ETF issuer that has the exclusive right to create and redeem ETF units directly with the fund in large blocks.Availability HeuristicPersonal FinanceThe availability heuristic is the mental shortcut of judging how likely something is by how easily examples come to mind, rather than by actual probability.Available for Sale (AFS)Investing & StocksAvailable for Sale is the bank investment category for securities not held to maturity or for active trading, which are marked to market with changes routed through reserves.Average ClausePersonal FinanceThe average clause is a condition in property insurance that reduces a claim proportionately if the asset is underinsured at the time of loss.Average True Range (ATR)Futures & OptionsATR measures average volatility by tracking the typical range a security moves over a period, including gaps.Averaging DownInvesting & StocksAveraging down is buying more of a stock as its price falls, lowering your average purchase cost.Ayushman Bharat PM-JAYPersonal FinancePradhan Mantri Jan Arogya Yojana is the government health-assurance scheme providing free secondary and tertiary hospitalisation cover to poor and vulnerable families.Backdating a PolicyPersonal FinanceBackdating is setting a life insurance policy's commencement date earlier than the actual purchase date — usually to secure a lower premium based on a younger age, or to align maturity with a financial goal.BacktestingInvesting & StocksBacktesting is the process of simulating a trading strategy on historical data to estimate how it would have performed, including returns, drawdowns and risk, before committing real capital.BackwardationFutures & OptionsBackwardation is when futures trade below the spot price, often signalling bearishness or heavy dividends.Backwardation / Contango (Basis)Investing & StocksContango is when a futures price trades above the spot price (positive basis) and backwardation is when it trades below (negative basis), reflecting cost of carry, dividends and market sentiment.Backwardation SqueezeInvesting & StocksA backwardation squeeze occurs when near-term commodity supply is so tight that spot and front-month futures spike far above later-dated contracts, often amid shortages or short-covering.Balanced Advantage FundMutual FundsA balanced advantage or dynamic asset allocation fund automatically shifts its mix between equity and debt based on market valuations, aiming to buy low and sell high.Balance of Payments (BoP)Mutual FundsThe balance of payments records all economic transactions between India and the rest of the world over a period, spanning trade, services, income and capital flows.Balance Sheet (Financial Statement)Investing & StocksThe balance sheet is a financial statement showing what a company owns (assets), owes (liabilities) and what is left over for owners (shareholders' equity) at a single point in time.Balance TransferPersonal FinanceA balance transfer moves an outstanding credit-card or loan balance to another card or lender offering a lower (sometimes zero) introductory interest rate for a limited period.Balance Transfer (Loan)Personal FinanceA loan balance transfer moves your outstanding loan from one lender to another, usually to get a lower interest rate.Balance Transfer TrapPersonal FinanceThe balance transfer trap is the danger of moving credit-card debt to a low-rate offer but failing to repay it before the promotional period ends, leaving you with high interest again.Balassa-Samuelson EffectMutual FundsThe Balassa-Samuelson effect explains why price levels and real exchange rates tend to be lower in poorer countries, because productivity gaps between rich and poor nations are larger in traded goods than in non-traded services.Bandwagon EffectPersonal FinanceThe bandwagon effect is the tendency to do something primarily because many others are doing it, regardless of one's own analysis — a close cousin of herd mentality.Banking & PSU FundMutual FundsA Banking & PSU fund is a debt scheme that invests at least 80% of its assets in bonds issued by banks, public sector undertakings and public financial institutions.Bank NiftyFutures & OptionsBank Nifty (Nifty Bank) is the NSE index of the largest banking stocks and one of India's most heavily traded F&O underlyings.Bank of Japan (BoJ)Mutual FundsThe Bank of Japan is Japan's central bank, long known for ultra-loose policy including near-zero rates and yield curve control to fight decades of deflation.Bank RecapitalisationMutual FundsBank recapitalisation is the infusion of fresh capital into public sector banks, often by the government, to shore up their balance sheets and lending capacity.Barista FIREPersonal FinanceBarista FIRE is a semi-retirement approach where you stop full-time career work and rely on a part-time or low-stress job, plus your investments, to cover expenses.Base Currency vs Quote CurrencyInvesting & StocksIn a currency pair, the base currency is the first one and is priced in units of the second, the quote currency; the rate shows how much quote currency one unit of base currency buys.Base EffectMutual FundsThe base effect is the distortion in year-on-year growth or inflation figures caused by an unusually high or low value in the comparison period a year earlier.Basel III NormsInvesting & StocksBasel III is the global bank regulation framework, adopted by the RBI, that strengthens capital quality, adds liquidity and leverage standards, and introduces capital buffers.Base MetalsInvesting & StocksBase metals are common industrial metals like copper, aluminium, zinc, lead and nickel, whose prices reflect global manufacturing and construction demand.Basic Customs DutyPersonal FinanceBasic customs duty is the primary tariff levied on imported goods as a percentage of their assessable value, forming the core of India's import tax.Basic PayPersonal FinanceBasic pay is the fixed core component of your salary on which many other components and statutory contributions — like HRA, PF and gratuity — are calculated.Basis (Futures)Investing & StocksBasis is the difference between the futures price and the spot price of the underlying, reflecting the cost of carry and market expectations, and it converges to zero as the contract approaches expiry.Basis of AllotmentInvesting & StocksThe basis of allotment is the formula, approved by the exchange, that decides how shares are distributed among applicants when an IPO is oversubscribed.Basket OrderInvesting & StocksA basket order lets a trader group multiple securities with defined quantities and order types into a single saved set that can be reviewed and fired together in one action.Basket TradingInvesting & StocksBasket trading is the buying or selling of a predefined group of securities together in proportions that match a target portfolio, index, or hedge, executed as one logical order.BBPSPersonal FinanceThe Bharat Bill Payment System is an NPCI-operated, interoperable platform that lets you pay almost any recurring bill — utilities, loans, insurance, taxes — from a single trusted system.Bear Call SpreadFutures & OptionsA bear call spread sells a lower-strike call and buys a higher-strike call to earn premium with a mildly bearish view.Bear MarketInvesting & StocksA bear market is a sustained fall in prices, often 20% or more from recent highs, accompanied by pessimism.Bear Put SpreadFutures & OptionsA bear put spread buys a higher-strike put and sells a lower-strike put to profit from a moderate fall at lower cost.Behavioral FinancePersonal FinanceBehavioral finance is the field that studies how psychology and cognitive biases affect the financial decisions of investors and markets, departing from the assumption of perfectly rational actors.BenchmarkMutual FundsA benchmark is the market index a fund is measured against, such as the Nifty 50, to judge whether the fund is genuinely beating the market or merely riding it.Beneficial NomineePersonal FinanceA beneficial nominee is a close family member entitled to receive and keep life policy proceeds in their own right, not merely as a custodian for the estate.Best ExecutionInvesting & StocksBest execution is the obligation on a broker or fund to take all reasonable steps to obtain the most favourable terms for a client's order, considering price, cost, speed, likelihood of execution and settlement.BetaInvesting & StocksBeta measures how much a stock tends to move relative to the overall market.Bharat Griha RakshaPersonal FinanceBharat Griha Raksha is IRDAI's standardised home insurance product covering the building and contents against fire and allied perils.BharatQRPersonal FinanceBharatQR is an interoperable QR-code standard developed by Indian card networks that lets merchants accept card-based and UPI payments through a single QR code.Bid-Ask SpreadInvesting & StocksThe bid-ask spread is the difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask), representing a core implicit cost of trading and a measure of liquidity.Bid Quantity / Ask QuantityInvesting & StocksBid and ask quantities are the number of shares buyers want at each bid price and sellers offer at each ask price, shown in market depth.Big Mac IndexMutual FundsThe Big Mac Index is The Economist's light-hearted gauge of currency valuation that compares the price of a McDonald's Big Mac across countries to test purchasing power parity.Bima BharosaPersonal FinanceBima Bharosa is IRDAI's online grievance portal where policyholders can register, track and escalate complaints against insurers.Bima SugamPersonal FinanceBima Sugam is IRDAI's proposed unified digital marketplace for buying, selling and servicing insurance across all insurers and intermediaries.Bima VahakPersonal FinanceBima Vahak is IRDAI's proposed grassroots, largely women-led distribution channel to take insurance to every Gram Panchayat in India.Bima VistaarPersonal FinanceBima Vistaar is a proposed affordable, bundled insurance product combining life, health and property cover for the rural and underserved population.BitcoinPersonal FinanceBitcoin is the first and best-known cryptocurrency, a decentralised digital asset with a capped supply, recorded on a public blockchain. In India it is a taxed VDA. This is informational, not advice.BlockchainPersonal FinanceA blockchain is a shared, append-only digital ledger where transactions are grouped into cryptographically linked blocks, making records hard to alter without consensus.Block DealInvesting & StocksA block deal is a large, single transaction of shares executed in a dedicated exchange window at a negotiated price within a permitted band, designed for institutions to trade size efficiently.Blue Chip StockInvesting & StocksA blue chip is a share of a large, well-established, financially sound company with a long track record.Board of DirectorsInvesting & StocksThe board of directors is the group elected by shareholders to oversee a company's management and set its strategic direction.Bollinger BandsFutures & OptionsBollinger Bands plot a moving average with upper and lower bands set at standard deviations to show volatility and extremes.Bond ETFMutual FundsA bond ETF is an exchange-traded fund that holds a portfolio of fixed-income securities, such as government or corporate bonds, tracking a bond index and trading on the exchange like a stock.Bond Investing PlatformsInvesting & StocksBond investing platforms are SEBI-regulated online avenues, including Online Bond Platform Providers, that let retail investors buy listed corporate and government bonds in small lots.Bond LadderMutual FundsA bond ladder is a strategy of buying bonds or deposits with staggered maturities so that a portion matures at regular intervals, smoothing cash flow and reducing interest-rate risk.Bond Price-Yield RelationshipMutual FundsBond prices and yields move in opposite directions: when market interest rates rise, existing bond prices fall, and vice versa.Bond Yield (10-Year G-Sec)Mutual FundsThe 10-year G-Sec yield is the benchmark interest rate on India's most-traded 10-year government bond — the single most-watched gauge of the cost of long-term money in the economy.Bond Yield and Government BorrowingMutual FundsThe yield on government bonds reflects the cost at which the government borrows and is influenced by the size of its borrowing programme, inflation and RBI policy.Bonus Disclosure (Benefit Illustration)Personal FinanceA benefit illustration is an IRDAI-mandated document showing projected policy values at standardised assumed rates so buyers can compare plans realistically.Bonus IssueInvesting & StocksA bonus issue is the free allotment of additional shares to existing shareholders, funded out of reserves, in proportion to their holdings.Bonus vs Split (Difference)Investing & StocksA bonus issue gives free extra shares from reserves, while a stock split divides existing shares into more shares with a lower face value, neither changes total value.Book BuildingInvesting & StocksBook building is the price-discovery process where an IPO's final price is set from the bids investors submit within a price band, rather than fixed in advance.Book Built Issue CategoriesInvesting & StocksIn a book-built IPO, the net offer is split into reserved portions for QIBs, non-institutional investors and retail investors.Book ProfitPersonal FinanceBook profit is the profit shown in a company's audited financial statements, used as the base for computing Minimum Alternate Tax.Book ValueInvesting & StocksBook value is a company's net worth on its balance sheet, total assets minus total liabilities, representing what shareholders own on paper.Book Value of a BankInvesting & StocksThe book value of a bank is its net worth, total assets minus liabilities, often viewed per share and adjusted for net NPAs to gauge underlying value.BootstrappingInvesting & StocksBootstrapping is building a company using its own revenue and the founders' personal resources, without raising external equity from venture capital or angel investors.Box SpreadFutures & OptionsA box spread combines a bull call spread and a bear put spread at the same strikes to create a near risk-free, fixed payoff.Bracket OrderInvesting & StocksA bracket order is an intraday order that simultaneously sets a target (profit) and a stop loss around your entry, automating the exit on both sides.Break-even Point (Options)Futures & OptionsThe break-even point is the underlying price at which an option strategy neither makes nor loses money at expiry.BreakoutFutures & OptionsA breakout is when price moves decisively beyond a defined support, resistance, or pattern boundary, often starting a new move.Brent vs WTIInvesting & StocksBrent and WTI are the two main global crude oil benchmarks: Brent from the North Sea prices most international oil, while WTI from the US is lighter and a key American reference.Bridge RoundInvesting & StocksA bridge round is interim financing that carries a startup from one major round to the next, often raised on convertible terms.Bridge to IPOInvesting & StocksA bridge-to-IPO round is late-stage financing raised to carry a company through to its planned public listing.BrokerageInvesting & StocksBrokerage is the fee your stockbroker charges for executing your buy and sell orders, and it is only one part of your total trading cost.BSEInvesting & StocksThe Bombay Stock Exchange is Asia's oldest stock exchange, founded in 1875, and is home to the 30-stock Sensex benchmark.BTST / STBTInvesting & StocksBTST (Buy Today, Sell Tomorrow) and STBT (Sell Today, Buy Tomorrow) are short-term strategies of exiting a position before settlement completes.Bucket StrategyPersonal FinanceThe bucket strategy is a way of organising retirement or goal savings into separate 'buckets' by time horizon — short, medium and long term — each invested according to when its money is needed.Budgeting (50/30/20)Personal FinanceThe 50/30/20 rule is a simple budgeting framework that splits your after-tax income into 50% needs, 30% wants and 20% savings and investments.Built-Up AreaPersonal FinanceBuilt-up area is the carpet area of a flat plus the area taken up by internal walls and usually balconies — essentially the total area of the unit itself.Bulk DealInvesting & StocksA bulk deal is a trade, or set of trades by a client, in a single stock that exceeds a threshold percentage of the stock's total traded shares in a day, requiring disclosure to the exchange.Bulk DepositsInvesting & StocksBulk deposits are large single-ticket term deposits, above an RBI-defined threshold, on which banks may offer differential, often higher, interest rates.Bull Call SpreadFutures & OptionsA bull call spread buys a lower-strike call and sells a higher-strike call to bet on a moderate rise at lower cost.Bullion MarketInvesting & StocksThe bullion market is where gold and silver in bulk physical form are traded — spot bars and coins as well as related futures and ETFs.Bull MarketInvesting & StocksA bull market is a prolonged period of rising prices and broad optimism across the market.Bull Put SpreadFutures & OptionsA bull put spread sells a higher-strike put and buys a lower-strike put to earn premium with a mildly bullish view.Burglary InsurancePersonal FinanceBurglary insurance covers loss of or damage to property from theft involving forcible and violent entry or exit.Burn RateInvesting & StocksBurn rate is the speed at which a startup is spending its cash, usually expressed per month.Business CycleMutual FundsThe business cycle is the recurring rise and fall of economic activity through expansion, peak, slowdown and recovery phases that shape company earnings and markets.Business Responsibility and Sustainability Report (BRSR)Investing & StocksThe BRSR is a SEBI-mandated disclosure in which large listed companies report their ESG performance in a standardised format.Butterfly SpreadFutures & OptionsA butterfly spread uses three strikes to bet that the underlying will finish near the middle strike, at low cost and defined risk.Buy and HoldInvesting & StocksBuy and hold is a long-term strategy of purchasing quality stocks and holding them for years, ignoring short-term price swings.BuybackInvesting & StocksA buyback is when a company repurchases its own shares from the market, reducing the number of shares outstanding.Buyback TaxPersonal FinanceBuyback tax is the levy historically imposed on companies when they repurchased their own shares, treated as an alternative to dividend distribution.Buyback (Tender vs Open Market)Investing & StocksA buyback can happen via a tender offer (proportionate, at a fixed price) or through open-market purchases on the exchange over time.Buy Now Pay Later (BNPL)Personal FinanceBuy Now Pay Later is a short-term financing option at checkout that lets you receive goods immediately and pay later, either in one deferred payment or in instalments.CAGRMutual FundsCAGR is the smoothed annual rate at which an investment grew over a period, as if it had risen steadily each year.Calendar RollFutures & OptionsA calendar roll moves an option position from a near expiry to a later one to extend the trade and reset time decay.Calendar Spread (Futures)Futures & OptionsA futures calendar spread buys one expiry and sells another of the same underlying to trade the spread, not direction.Calendar Spread (Options)Futures & OptionsA calendar spread sells a near-term option and buys a longer-term option at the same strike to profit from time decay and volatility.Callable BondMutual FundsA callable bond gives the issuer the right to repay it before maturity, typically when interest rates fall and refinancing becomes cheaper.Call AuctionInvesting & StocksA call auction collects orders over a period and matches them all at a single price that maximises the volume traded, instead of matching continuously.Call OptionFutures & OptionsA call option gives its buyer the right, but not the obligation, to buy an asset at a fixed strike price before expiry — buyers profit when the price rises.CAMS / KFintechMutual FundsCAMS and KFintech are India's two main mutual fund registrar and transfer agents (RTAs), processing the transactions, folios and records behind almost every mutual fund scheme in the country.Candlestick PatternFutures & OptionsCandlestick patterns are formations of one or more candles that suggest likely shifts in market sentiment.Capex PushMutual FundsA capex push is a deliberate budgetary strategy of sharply increasing government capital expenditure on infrastructure to spur growth and attract private investment.Capex vs OpexInvesting & StocksCapex is spending on long-lived assets that is capitalised and depreciated over time, while opex is day-to-day operating expense charged fully in the period incurred.Capital Account ConvertibilityMutual FundsCapital account convertibility is the freedom to convert local financial assets into foreign assets and back at market rates without restriction, which India only allows partially.Capital Adequacy Ratio (CAR / CRAR)Investing & StocksThe Capital Adequacy Ratio, also called CRAR, is the ratio of a bank's capital to its risk-weighted assets, measuring its ability to absorb losses.Capital CallInvesting & StocksA capital call, or drawdown, is the fund manager's formal request that investors transfer a portion of their previously committed capital so the fund can make an investment or pay expenses.Capital Conservation Buffer (CCB)Investing & StocksThe Capital Conservation Buffer is an extra layer of CET1 capital banks must hold above the regulatory minimum, breaching which restricts dividend payouts.Capital ControlsMutual FundsCapital controls are government measures that restrict the cross-border flow of money, used to manage the exchange rate, curb capital flight and protect monetary independence.Capital Expenditure (Capex)Investing & StocksCapex is the money a company spends on acquiring or upgrading long-term assets like plants, machinery, and equipment to grow or maintain operations.Capital Gains Account SchemePersonal FinanceThe Capital Gains Account Scheme lets taxpayers park capital gains in a designated bank account to retain tax exemption until they reinvest in a specified asset.Capital Gains (Equity)Investing & StocksCapital gains on equity arise when listed shares or equity funds are sold for profit, taxed as short-term or long-term depending on the holding period, with specific Indian rates.Capital Gains on Mutual FundsMutual FundsCapital gains tax on mutual funds depends on whether the fund is equity or non-equity and how long you held the units before selling.Capital Gains TaxPersonal FinanceCapital gains tax is the tax you pay on the profit from selling an asset such as shares, mutual funds, gold or property.Capital Gains Tax (Equity)Investing & StocksCapital gains tax is the tax on profit from selling shares, with different rates for short-term and long-term holdings in India.Capital Infusion (Recapitalisation)Investing & StocksCapital infusion or recapitalisation is the injection of fresh equity capital into a bank, often by the government for PSU banks, to restore capital adequacy.Capitalisation (Costs)Investing & StocksCapitalisation is recording an expenditure as an asset on the balance sheet rather than an immediate expense, to be written off over future periods.Capital OutlayMutual FundsCapital outlay is the portion of government spending used directly to acquire or build physical and financial assets, the core of capital expenditure.Capital Protection FundMutual FundsA capital protection oriented fund is a closed-end hybrid scheme that aims to protect the invested capital at maturity while seeking modest growth, mainly through a large, highly rated debt allocation.Capital Protection vs Capital AppreciationPersonal FinanceCapital protection prioritises keeping your money safe, while capital appreciation prioritises growing it, usually with more risk.Capital to Risk Assets Trade-offInvesting & StocksThe capital-to-risk-assets trade-off is the balance banks strike between deploying capital for higher-return, higher-risk lending and conserving it to meet adequacy norms.Capital Work in Progress (CWIP)Investing & StocksCapital Work in Progress is the cost of fixed assets under construction or not yet ready for use, recorded on the balance sheet before being capitalised.Capping (Index)Investing & StocksCapping is an index rule that limits the maximum weight any single constituent, or group such as a sector, can have, preventing excessive concentration and ensuring diversification.Cap TableInvesting & StocksA capitalisation table (cap table) is the master record of who owns what in a company — every shareholder, option holder and convertible instrument, with each stake and the resulting ownership percentages.Cap Table Clean-upInvesting & StocksCap table clean-up is the process of tidying a startup's ownership records, consolidating tiny holders, resolving convertibles and fixing paperwork, usually ahead of a large round or IPO.Cap Table Waterfall ModellingInvesting & StocksWaterfall modelling calculates how the proceeds of an exit would be split among each shareholder class given the preference stack and conversion choices.Captive InsurerPersonal FinanceA captive insurer is an insurance company set up by a parent organisation to insure the risks of that parent and its group.Carbon PricingMutual FundsCarbon pricing attaches a cost to greenhouse-gas emissions — through a carbon tax or a cap-and-trade market — so polluters internalise the climate damage they cause and shift toward cleaner choices.Carpet AreaPersonal FinanceCarpet area is the actual usable floor area within the walls of a flat — the space you can lay a carpet on — excluding the thickness of walls and common areas.Carried InterestInvesting & StocksCarried interest, or carry, is the share of a fund's profits that the general partner keeps as performance pay, typically around 20% and only after investors clear a minimum hurdle return.Carry-to-Risk RatioInvesting & StocksThe carry-to-risk ratio compares the interest-rate gain from a carry trade to the expected volatility of the currency pair, gauging whether the carry adequately compensates for the risk of an adverse currency move.Carry TradeInvesting & StocksA carry trade borrows in a low-yielding currency and invests in a higher-yielding one, profiting from the interest rate differential as long as the exchange rate stays stable.CASA (Current and Savings Account)Personal FinanceCASA refers to the combined balances in current and savings accounts, which are a bank's cheapest source of funds.CASA RatioInvesting & StocksThe CASA ratio is the share of a bank's total deposits held in current and savings accounts, which pay little or no interest.Cash-and-Carry ArbitrageFutures & OptionsCash-and-carry arbitrage profits from a futures premium by buying the stock in cash and selling its future simultaneously.Cash Conversion CycleInvesting & StocksThe cash conversion cycle measures how many days it takes a company to turn investments in inventory and receivables back into cash.Cash DragMutual FundsCash drag is the small performance shortfall an index fund or ETF suffers from holding uninvested cash, which earns less than the index when markets rise and contributes to tracking error.Cash Flow StatementInvesting & StocksThe cash flow statement reconciles a company's profit to its actual cash movements, split into operating, investing and financing activities.Cash Flow Statement (Individuals)Personal FinanceA personal cash flow statement tracks the money flowing in (income) and out (expenses) over a period, showing whether you have a surplus to save or a deficit to fix.Cash-Futures ArbitrageInvesting & StocksCash-futures arbitrage profits from the gap between a stock's cash price and its futures price relative to fair value, capturing the cost-of-carry by holding the cash position against an offsetting futures position.