Nifty 50
Sensex
US Tech 100
Dow Jones
FTSE
Dax
CAC
Nikkei 225
Hang Seng
SSE Composite
TAIEX
KOSPI
Gift Nifty
Strategy Indices
Broad Market Indices
Sectoral Indices
Thematic Indices
IPO
Definition of IPO
An IPO or Initial Public Offering is the method in which a privately held company becomes a publicly listed company. Existing shareholders must approve the IPO plan before the company can go public. Once shareholders approve, the company will either hire an intermediary or go for a Direct Public Offering, the result of which will be the determination of a price for the new equity shares that will be listed in the primary market.
Related Terms
Acid Test Ratio
An Acid Test Ratio shows whether a company has enough liquid short-term assets to deal with current liabilities.
The higher the Acid Test Ratio the better a company’s ability to deal with debt.
Acid Test Ratio = (Cash + Marketable Securities + Accounts Receivable)/Current liabilities
The higher the Acid Test Ratio the better a company’s ability to deal with debt.
Acid Test Ratio = (Cash + Marketable Securities + Accounts Receivable)/Current liabilities
MACD
MACD (Moving Average Convergence Divergence) is a technical indicator used to identify entry or exit signals when trading stocks, futures, options, and others. MACD consists of two lines as follows: MACD line Signal line The MACD line represents the difference between two exponential moving averages, while the signal line is a moving average of the MACD line.
Option Chain
An Option Chain is the complete list of all the options contracts, both calls and puts, for a given underlying security, across a wide range of expiration dates and strike prices. It shows real-time data of bid price and ask price, trading volume, and open interest for each contract. Traders use the option chain to analyse market depth and identify where the most trading activity is concentrated (often suggesting potential support and resistance levels).
Ichimoku Cloud
Ichimoku Cloud is a group of technical indicators that’s used to understand trends, momentum, support,
and resistance by calculating averages.
Furthermore, the Ichimoku Cloud indicator is made up of two components:
- TenkanSen: The short-term indicator
-
KijunSen: The long-term indicator
There’s a cloud that’s formed as a result of plotting the averages and using the components on a chart.
One glance at this cloud can tell you multiple things like:
- Uptrend: If the price is above the cloud
- Downtrend: If the price is below the cloud
- Neutral: If the price is in the cloud
Moreover, if the cloud and the price are moving in the same direction, there’s much more confidence in the
trend that’s forming. In fact, it’s a trading signal.
Inflation
Inflation is defined as the rise in the price of goods and services with a declining purchasing power amongst the general population. The primary cause of inflation is a surge in demand that can not be met with the same level of supply.
Micro Cap Stocks
Micro Cap Stocks are shares of very small companies with a relatively low market capitalisation, typically below ₹500 crore. These stocks can offer high growth potential but also come with higher risk, lower liquidity, and greater price volatility compared to larger, well-established companies.
Invest & Trade with a Trading
Platform That's #MadeForTrade
Open your Dhan Account in minutes!
