Investor Terms

Board Credentials

Board credentials refers to the skill sets (qualification, experience, etc.) that the management team of a company possesses.

Bullish Harami

It is a candlestick chart pattern, where a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. The Bullish Harami pattern comes after a downtrend which is indicated through a black candlestick followed by a smaller white candlestick, giving a signal of a reversal of the downward trend.

Consolidated Basis

Consolidated Basis gives the valuation guidance for this company, based on the financial performance of the group of companies and its divisions worldwide.

Corporate Governance

Corporate Governance signifies a set of processes or laws that affects the way a company is directed and controlled.

Discount Price

Discount Price (DP) is the price where the Margin of Safety is deducted from the MRP.

Equity

Equity, also known as Share Capital, represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock.

Expected Rate of Return

The compounded annual rate of return, investors expect from company's share, is called expected rate of return. At MoneyWorks4me it is 20%

Face Value

Face value is the nominal value of the share which is the original cost of the stock shown on the certificate. It is also known as 'Par Value'.

Integrity

Integrity refers to the application of honest and fair business practises.

Margin of Safety

It is the minimum percentage to be kept as discount on maximum retail price to buy the company's share. It takes care of all the unpredictable risks of investing in the company. At MoneyWorks4me it is 50% which indicates that one should pay only Rs.50 for the assets which are worth Rs.100.

Market Cap

The total market value of all of a company's outstanding shares in rupee terms is called market capitalization. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share.

Moving Average

Moving average shows the average value of a stock's price over a defined period.

MRP

MRP is the intrinsic value of the stock based on key parameters.

Outstanding Shares

Outstanding shares are those shares which are currently held by investors along with those that are held by company’s employees and promoters. The number of shares outstanding can be arrived at by dividing the Total Equity Share Capital by their face value.

Promoters Holding

Promoters’ holding refers to the stake that the promoters hold in the capital of a company.

Share Pledging

Share pledging refers to a situation where promoters of the company pledge certain % of their holding to financial institutions to raise debt.

Share Price Graph

Share price graph is a visual representation of daily closing prices of the company's share over a particular period of time. This graph helps in analysing:

The range in which the price of the share is fluctuating.
At what position the share price of the company is at present. Whether it is at lower side of uptrend or at higher side of downtrend or somewhere else.

To find a good company to invest in it is advisable to find the company whose price is at lower side of uptrend

Standalone Basis

Standalone Basis gives the valuation guidance of this company, based on the financial performance of the company as a single entity.

Stop Loss

Stop loss is an order set to Sell (or Buy) a security, once the price of the security drops down (or climbs above) to a specified level, to limit the loss on that security.

S&P CNX Nifty

S&P CNX Nifty (also known as Nifty 50) is a well-diversified 50 stocks index of companies from various sectors of the economy. These stocks are considered to be the barometers of the economy and are market leaders in their own sectors.

Trailing Twelve Months (TTM)

The trailing twelve months is a measurement of a company's financial health, using last four quarters financial performance.

Transparency

Transparency refers to the practises that a company follows in the disclosure of important and necessary information.

Volume Traded

Volume traded represents the number of shares traded in a stock or an entire market during a given period of time.