GLOSSARY

PRESENTED BY: - SHUBHAM KUMAR 110051

SWAMI JEE 110111
• ISIN: ISIN (International Securities Identification Number) ‐ A unique identification
number allotted for each security in the depository system by SEBI

• Listing: Formal admission of a security into a public trading system

• Limit Order: An order to buy or sell a specified number of shares of a security when a
specified price is reached
• Margin: An advance payment of a portion of the value of a stock transaction. The amount
of credit a broker or lender extends to a customer for stock purchase.

• Marked to market basis: The process whereby the book value or collateral value of a
security is adjusted to reflect current market value.

• Market capitalization: The market value of a company, calculated by multiplying the

number of shares issued and outstanding by their current market price
• MIBOR: Mumbai Interbank Offer rates. Calculated by the average of the interbank offer
rates based on quotations at nearly 30 major banks

• Odd Lot: Anything less than the standard unit of trading

• Offer Document: As per SEBI DIP guidelines, offer document means Prospectus in case of
a public issue or offer for sale and Letter of Offer in case of a rights issue
• Open Order: An order to buy and sell a security that remains in effect until it is either
cancelled by the customer or executed
• Order book: It is an ‘electronic book’ that shows the demand and supply of the shares of
the company at various prices
• OTC (Over the Counter): A financial transaction that is not made on an organized
exchange
• Price sensitive information: Any information which relates directly or indirectly to a
company and which if published is likely to materially affect the price of securities of the
company.
• Prospectus: Any document described or issued as a prospectus and includes any notice,
circular, advertisement or other document inviting deposits from the public or inviting
offers from the public for the subscription or purchase of any shares or debentures of a
body corporate.
• Proxy: One who votes for and on behalf of a shareholder at a company meeting.
• Record Date: A date on which the records of a company are closed for the purpose of
determining the stockholders to whom dividends, proxies, rights etc., are to be sent
• Rights Issue/ Rights Shares: The issue of new securities at a pre‐decided price to the
existing shareholders in a fixed ratio to those already held
• Underwriting: An agreement with or without conditions to subscribe to the securities of
a body corporate when the existing shareholders of such body corporate or the public
do not subscribe to the securities offered to them
• Volume of Trading: The total number of shares which changes hands in a particular
company’s securities. This information is useful in explaining and interpreting fluctuation
in share prices.
• Voluntary delisting: Delisting of securities of a body corporate voluntarily by a promoter
or an acquirer or any other person other than the stock exchange.
• Voting Rights: The entitlement of a shareholder to exercise vote in the general meeting of
a company.
• Price Band: The range within which the price of a security or the index of a currency is
permitted to move within a given period
• Transfer Agents: An agent designated by the company to carry out the function of
transfer of shares
• Pari Passu: A term used to describe new issue of securities which have same rights as
similar issues already in existence.
• Rolling settlement: The practice of settling a transaction within a fixed number of days
after the trade is agreed
• Voluntary delisting: Delisting of securities of a body corporate voluntarily by a promoter
or an acquirer or any other person other than the stock exchange
• Stock splits: A distribution of company’s own capital stock to existing stockholders with
the purpose of reducing the market price of the stock, which would hopefully increase
the demand for the shares
Q &A
INSTRUCTIONS FOR Q & A SESSION

Choose the most appropriate option

QUESTIONS

1. ISIN allotted for ________

A) Every security in the depository system by SEBI.
B) Each security in the depository system by SEBI.
C) Each and every security in the depository system by SEBI.
D) All of the above
E) None of the above
B. Each security in the depository system by SEBI.

Although both words refer to something that is singular, each refers to an individual
object or person, while the term every refers to a group of objects or people lumped
together as one.
2. Limit Order: An order to_____a specified number of shares of a security when a
specified price is reached.
A) Buy
B) Sell
C) Buy or Sell
D) Purchase or Sell
• C. Buy or sell

• Buying is considered a general term, which is most commonly used to refer to everyday
goods and commodities, while, purchase is considered to be a more formal word
than buy. Purchasing is often used to refer to contracts and big products,
whereas buying is inferred for small products.
3. Listing: Formal admission of a security into a _____ trading system.
A) Private
B) Proprietary
C) Local
D) Public
E) All of the above
• D. Public
4. Marked to market basis: The process whereby the book value or collateral value of a
security is adjusted to reflect_____value.
A) Historical market
B) Future market
C) Current market
D) All of the above
• C. Current market
5. MIBOR: Mumbai Interbank Offer rates. Calculated by the average of the interbank offer
rates based on quotations at nearly ____ banks.
A) 20 to 30 major
B) 20 major
C) Either 20 or 30 major banks
D) As per RBI guidelines
E) 30 major
• E. 30 major
6. Open Order: An order to _____a security that remains in effect until it is either
cancelled by the customer or executed.
A) Sell
B) Buy
C) Buy or Sell
D) Buy and Sell
E) Both A and B
• D. buy and sell
CHOOSE THE INCORRECT OPTION

7. OTC (Over the Counter): A financial transaction that is not made on an unorganized
exchange.
A) Statement is true
B) Somehow true
C) Statement is false
D) Somehow false
E) Either true or false
• OTC (Over the Counter): A financial transaction that is not made on an organized
exchange.
8. Pari Passu: A term used to describe a)___ issue of securities which have same rights as
similar issues b)____ in existence.
A) Old/already
B) New/already
C) New/ about to come
D) Old/previously in
• Pari Passu: A term used to describe new issue of securities which have same rights as
similar issues already in existence.
• B
9. Price sensitive information: Any information which relates a)______to a company and which if published
is likely to b) ____affect the price of securities of the company.
A) Directly / increase
B) Indirectly / increase
C) Directly / decrease
D) Indirectly / decrease
E) Any of the above
F) None
• Price sensitive information: Any information which relates directly or indirectly to a
company and which if published is likely to materially affect the price of securities of
the company.
9. Proxy: One who votes _______a shareholder at a company meeting.
A) For
B) On behalf of
C) For and On behalf of
D) All of the above
E) None of the above, means he doesn’t vote
• Proxy: One who votes for and on behalf of a shareholder at a company meeting.

• C
10. Rights Issue/ Rights Shares: The issue of new securities at a pre‐decided price to the
existing shareholders in a ______to those already held.
A) Pro-rata basis
B) Ratio decided by company
C) Fixed ratio
D) Either B or C
E) Pre-decided ratio
• Rights Issue/ Rights Shares: The issue of new securities at a pre‐decided price to the
existing shareholders in a fixed ratio to those already held.

• C
11. What is settlement date?
A) Date specified for delivery
B) Date specified for execution
C) Date of selling
D) Date of purchase
• A.
12. Who is a sub broker?
A) Person acting on behalf of stock
B) Person acting on behalf of trader
C) Person acting on behalf of issuer
D) All of the above
• A.
13. Who is a transfer agent?
A) Agent designated by company for transfer of share
B) Agent designated for purchasing of share
C) Agent designated for selling of share
D) All of above.
E) None of the above
• A.
14. Voting Rights: The entitlement of a shareholder to exercise vote in the general meeting
of a company.
A. Statutory Meeting
B. Annual General Meeting
C. Extraordinary General Meeting
D. Class Meeting
E. No option needed, statement is correct
• Voting Rights: The entitlement of a shareholder to exercise vote in the general meeting
of a company.