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Finance GlossaryGross Domestic Product
Gross Domestic Product
Definition of Gross Domestic Product
The Gross Domestic Product is an economic measure of the financial value of all goods and services produced by a country during a specific time period.
Related Terms
Mutual Fund Sahi Hai
Mutual Fund Sahi Hai is a popular investor awareness slogan/website launched by the Association of Mutual Funds in India (AMFI). It aims to educate people about mutual funds and encourage informed, long-term investing by highlighting the benefits of diversification, professional management, and disciplined investment habits.
Treasury Stock
Treasury stock refers to shares that a company has repurchased from the open market and holds in its own treasury. These shares do not pay dividends and typically have no voting rights. Companies repurchase shares to improve earnings per share, optimise capital structure, or support stock price stability.
Candlesticks
Candlesticks are technical charts used in trading to understand price movements. A candlestick chart will show the following information:
There are three components to a call option:
- High (for the period)
- Low (for the period)
- Open price
-
Closing price
The main body of the candle will be green if the closing price is higher than the opening price and red if the closing price is lower than the opening price.
Long green candles mean more investors and traders want to buy a stock. Long red candles mean more investors and traders want to exit a stock.
Long green candles mean more investors and traders want to buy a stock. Long red candles mean more investors and traders want to exit a stock.
Free Cash Flow
Free float market capitalization is the market cap of a company based on the total freely available publicly traded outstanding shares. The formula to calculate free float market capitalization is:
Free float market capitalization = Share Price x (Number of Shares Available for Trading – Private and Locked-In Shares)
When calculating the free float market cap of a company, the number of shares held privately or the shares that are locked-in are not taken into account. Typically, these shares are held by promoters and the government.
Free float market capitalization = Share Price x (Number of Shares Available for Trading – Private and Locked-In Shares)
When calculating the free float market cap of a company, the number of shares held privately or the shares that are locked-in are not taken into account. Typically, these shares are held by promoters and the government.
Margin Trading
Margin trading is a strategy that involves borrowing funds from a broker to take bigger positions in stocks, commodities, currencies, futures, or options.
Book To Bill Ratio
Book to Bill ratio is the value you get by dividing the total worth of new orders received by the total worth of orders sold. The formula to calculate Book to Bill ratio is:
Book to Bill ratio: Total worth of new orders received / Total worth of orders billed
Book to Bill ratio helps companies understand the demand and supply for their goods or services. A Book to Bill ratio of more than 1 means that there’s more demand and less supply.
Whereas, a Book to Bill ratio of less than 1 means that there’s less demand and more supply. Using these indicators, the company can work on increasing or limiting production.
Book to Bill ratio: Total worth of new orders received / Total worth of orders billed
Book to Bill ratio helps companies understand the demand and supply for their goods or services. A Book to Bill ratio of more than 1 means that there’s more demand and less supply.
Whereas, a Book to Bill ratio of less than 1 means that there’s less demand and more supply. Using these indicators, the company can work on increasing or limiting production.
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