Glossary594 terms80,007 words
594 terms an analyst uses
Every term gets a plain definition and a worked example in rupees and dollars, written for someone meeting it for the first time, plus a link to the module that teaches it. 80,007 words in all.
A
- Absolute reference
- Accounting equation
- Accretion and dilution
- Accrual accounting
- Accrual ratio
- Acquisition accounting
- Additional surveillance measure
- Adjusted gross revenue
- Airline yield
- Alpha
- Altman Z-score
- American depositary receipt
- AMFI
- Amortisation
- Anchor investor
- Anchoring
- Annual recurring revenue
- Annual report
- Annual report on Form 10-K
- Annualised premium equivalent
- Answer-first storyline
- Asset allocation
- Asset liability management
- Asset turnover
- Asset-light
- Assets under management
- Assumption cell
- Attrition
- Audit committee
- Auditor resignation
- Auditor's report
- Availability heuristic
- Average daily rate
- Average length of stay
- Average order value
- Average revenue per occupied bed
- Average revenue per user
- Average transaction value
B
- Back of the envelope
- Backtest
- Bad debt provision
- Balance of payments
- Balance sheet
- Balancing figure
- Bargaining power of buyers
- Bargaining power of suppliers
- Base case
- Base rate
- Basel III
- Basis for issue price
- Basis point
- Bear case
- Benchmarking
- Beneish M-score
- Beta
- Bid-ask spread
- Big bath
- Bill and hold
- Black-Scholes model
- Board of directors
- Bombay Stock Exchange
- Bond price and yield
- Bonus issue
- Book building
- Book to bill
- Book value per share
- Break-even
- Bulk and block deals
- Bull case
- Burn rate
- Business cycle
- Business model
- Business model teardown
- Buyback
C
- CAC payback
- Calibration
- Call and put options
- Capital adequacy ratio
- Capital allocation
- Capital asset pricing model
- Capital cycle
- Capital employed
- Capital expenditure
- Capital flows
- Capital gains tax
- Capital intensity
- Capital structure
- Capital work in progress
- Capitalisation rate
- Capitalising expenses
- CASA ratio
- Case mix
- Cash and cash equivalents
- Cash conversion cycle
- Cash flow from operations
- Cash flow statement
- Cash reserve ratio
- Catalyst
- Certificate of deposit
- Channel check
- Channel stuffing
- Churn
- Circuit limits
- Circular reference
- Cohort retention
- Combined ratio
- Commercial paper
- Commoditisation
- Common equity tier 1
- Communication toolkit
- Comparable company analysis
- Competitive rivalry
- Compound annual growth rate
- Compounding
- Confirmation bias
- Consensus estimate
- Consolidated accounts
- Constant currency growth
- Consumer price index
- Contingent asset
- Contingent liability
- Contribution margin
- Contribution margin per order
- Control premium
- Conversion rate
- Convertible bond
- Convexity
- Cookie jar reserves
- Core inflation
- Corporate action
- Corporate governance
- Corporate governance report
- Correlation
- Cost advantage
- Cost of debt
- Cost of equity
- Cost of funds
- Cost of goods sold
- Cost per available seat kilometre
- Cost to income ratio
- Country risk premium
- Coupon
- Covariance
- Covenant
- Credit cost
- Credit cycle
- Credit growth
- Credit rating
- Credit spread
- Credit-deposit ratio
- Crowding out
- Current account deficit
- Current asset
- Current liability
- Current ratio
- Current report on Form 8-K
- Current yield
- Customer acquisition cost
- Cut-off
- Cyclically adjusted price to earnings
D
- Days inventory outstanding
- Days payable outstanding
- Days sales outstanding
- Debt cycle
- Debt service coverage ratio
- Debt to equity
- Decision journal
- Deep dive
- Deferred revenue
- Deferred tax
- Deleveraging
- Delisting
- Demat account
- Demerger
- Deposit franchise
- Depository
- Depreciation
- Derivatives
- Diluted earnings per share
- Direct assignment
- Direct plan
- Disbursement
- Discontinued operations
- Discount rate
- Discounted cash flow
- Disposition effect
- Disruption
- Distribution yield
- Diversification
- Dividend discount model
- Dividend payout ratio
- Dividend yield
- Domestic institutional investor
- Double-entry bookkeeping
- Draft red herring prospectus
- Driver
- Due diligence
- DuPont analysis
- Duration
E
- Earnings call
- Earnings per share
- Earnings yield
- EBITDA
- EBITDA margin
- Economic value added
- Economies of scale
- EDGAR
- Effective tax rate
- Efficient frontier
- Efficient scale
- Embedded option
- Embedded value
- Endowment effect
- Enterprise value
- Equity method
- Equity risk premium
- Equity value
- ESOP dilution
- EV to EBIT
- EV to EBITDA
- EV to EBITDAR
- EV to sales
- Exceptional items
- Excess return
- Exchange rate
- Exchange-traded fund
- Exit load
- Exit multiple method
- Expected credit loss
- Expected shortfall
- Expected value
- Explicit forecast period
F
- Face value
- Fade period
- Fair value
- Federal Reserve
- FIFO and LIFO
- Finance costs
- Financial leverage
- Fiscal deficit
- Five questions
- Fixed asset turnover
- Fixed costs
- Float
- Follow-on public offer
- Footfall
- Foreign exchange reserves
- Foreign portfolio investor
- Forensic red flags
- Forward contract
- Forward price to earnings
- Free cash flow
- Free cash flow to equity
- Free cash flow to the firm
- Free cash flow yield
- Free float
- Fulcrum security
- Funds from operations
- Futures contract
G
- Gearing
- Geometric mean
- Going concern
- Goods and services tax
- Goodwill
- Gordon growth model
- Government securities
- Graded surveillance measure
- Grey market premium
- Gross domestic product
- Gross margin
- Gross margin return on inventory
- Gross merchandise value
- Gross non-performing assets
- Gross operating profit per available room
- Gross profit
- Gross revenue retention
- Growth capital expenditure
- Guidance
H
I
- IFRS
- Illiquidity discount
- Impairment
- Implied volatility
- Income statement
- Income-tax Act, 2025
- Incremental return on capital
- Ind AS
- Independent director
- Index fund
- Index of industrial production
- Inflation
- Information ratio
- Infrastructure investment trust
- Initial public offering
- Insider trading
- Insolvency and bankruptcy code
- Insurance expense ratio
- Intangible assets
- Intangible assets as a moat
- Interest coverage ratio
- Interest paid versus interest expense
- Interest rate risk
- Interest tax shield
- Internal rate of return
- Intrinsic value
- Inventory
- Inventory turnover
- Inverted yield curve
- Invested capital
- Investment policy statement
- Investment thesis
- IRDAI
- Issue tree
L
M
- Maintenance capital expenditure
- Management discussion and analysis
- Margin of safety
- Marginal tax rate
- Market capitalisation
- Market share
- Market sizing
- Market timing
- Matching principle
- Maximum drawdown
- Mean-variance optimisation
- MECE
- Median
- Mental accounting
- Mid-cycle earnings
- Mid-year convention
- Minimum public shareholding
- Minority discount
- Moat
- Model audit
- MOIC
- Monetary policy committee
- Money supply
- Monte Carlo simulation
- Monthly recurring revenue
- Mutual fund
N
- Narrative fallacy
- National Company Law Tribunal
- National Stock Exchange
- Net asset value
- Net debt
- Net debt to EBITDA
- Net interest income
- Net interest margin
- Net non-performing assets
- Net operating income
- Net present value
- Net profit
- Net profit margin
- Net revenue
- Net revenue retention
- Network effects
- Nifty 50
- Non-banking financial company
- Non-cash charges
- Non-controlling interest
- Non-convertible debenture
- Non-GAAP measure
- NOPAT
- Normal distribution
- Notes to accounts
O
- Objects of the issue
- Occupancy rate
- Off-balance-sheet
- Offer for sale
- Open market operations
- Open offer
- Operating cycle
- Operating lease
- Operating leverage
- Operating margin
- Operating model
- Operating profit
- Opportunity cost
- Option delta
- Order of magnitude
- Other comprehensive income
- Other income
- Overconfidence
- Overfitting
- Owner earnings
P
- p-value
- Passenger load factor
- Payback period
- PEG ratio
- Penetration
- Percentile
- Perpetuity growth method
- Persistency ratio
- Pivot table
- Policy rate
- Porter's five forces
- Portfolio construction
- Position sizing
- Pre-mortem
- Precedent transactions
- Preferential allotment
- Present value
- Price band
- Price elasticity
- Price to book
- Price to earnings
- Price to embedded value
- Price to sales
- Pricing power
- Primary source
- Priority sector lending
- Priority waterfall
- Process versus outcome
- Profit before tax
- Promoter
- Promoter pledge
- Property, plant and equipment
- Provision coverage ratio
- Provisions
- Proxy statement
- Purchasing managers' index
- Purchasing power parity
Q
R
- R-squared
- Real estate investment trust
- Real gross domestic product
- Real interest rate
- Rebalancing
- Receivables turnover
- Recency bias
- Record date
- Regression
- Reinvestment rate
- Related party transactions
- Repo rate
- Reserve Bank of India
- Reserves and surplus
- Residual income model
- Restatement
- Restructured loans
- Retained earnings
- Retention ratio
- Retrieval-augmented generation
- Return on assets
- Return on assets for a bank
- Return on capital employed
- Return on embedded value
- Return on equity
- Return on invested capital
- Revenue deficit
- Revenue from operations
- Revenue growth
- Revenue per available room
- Revenue per available seat kilometre
- Revenue per employee
- Revenue recognition
- Reverse DCF
- Reverse repo rate
- Revolving credit facility
- Rights issue
- Risk-free rate
- Risk-weighted assets
- Rule of 40
- Rupee cost averaging
- Rupee depreciation
S
- S&P 500
- S-curve
- Sales per square foot
- Same-store net operating income growth
- Same-store sales growth
- Sanity check
- Scenario analysis
- Schedule III
- Scheme of arrangement
- Screening
- Scuttlebutt
- SEBI
- Securities and Exchange Commission
- Securities premium
- Securities transaction tax
- Securitisation
- Segment analysis
- Segment capital employed
- Segment margin
- Segment reporting
- Selling discipline
- Sensex
- Sensitivity analysis
- Serviceable addressable market
- Share capital
- Share-based compensation
- Shareholders' equity
- Shareholding pattern
- Sharpe ratio
- Slippage ratio
- Solvency ratio
- Sortino ratio
- Source stack
- Sovereign rating
- Special mention accounts
- Spectrum
- Spread over cost of capital
- Standard deviation
- Standing deposit facility
- Statutory liquidity ratio
- Steady state
- Stock split
- Strategic asset allocation
- Stress testing
- Subscriber churn
- Sum of the parts
- Sunk cost fallacy
- Survivorship bias
- Sustainable growth rate
- Swap contract
- Switching costs
- Synergies
- Systematic investment plan
T
- T+1 settlement
- Tactical asset allocation
- Take rate
- Takeover code
- Tangible book value
- Teardown
- Term premium
- Term spread
- Terminal value
- Text embedding
- Threat of new entrants
- Threat of substitutes
- Three-statement model
- Tier 1 capital
- Time value of money
- Total addressable market
- Total contract value
- Total expense ratio
- Tracking error
- Trade payables
- Trade receivables
- Trailing price to earnings
- Treasury bill
- Treasury stock method
- Trial balance