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Finance GlossaryMarket-on-Close (MOC)
Market-on-Close (MOC)
Definition of Market-on-Close (MOC)
Market-on-Close (MOC) is an order to buy or sell a security at the market price as close as possible to the closing price of the trading session. It is commonly used by traders and investors who want execution at the day’s end, reflecting the final market sentiment.
Related Terms
Benchmark
A benchmark is a standard used by investors to compare the performance of a stock, commodity, or other securities.
Stock indices like Nifty 50, Sensex, Nifty Bank, and others are often used as benchmarks to evaluate the performance of one or more stocks.
The onset of a bear market is generally in tandem with poor economic conditions.
Benchmarks are not just used for evaluating markets or securities, they can also be used to assess the performance of an investor or wealth manager. Here are some outcomes if the returns are:
Stock indices like Nifty 50, Sensex, Nifty Bank, and others are often used as benchmarks to evaluate the performance of one or more stocks.
The onset of a bear market is generally in tandem with poor economic conditions.
Benchmarks are not just used for evaluating markets or securities, they can also be used to assess the performance of an investor or wealth manager. Here are some outcomes if the returns are:
- Greater than benchmark: the asset is doing considerably well (great)
- Same as benchmark: the asset is moving with the market (okay)
- Less than benchmark: the asset is performing poorly (bad)
European Option
A European Option allows a trader to exercise the contract only on the day of expiry. For example, let’s say an options trader bought a European Call Option that expires on 01-01-2023.
The options trader can only exercise the call option, that is, buy the underlying assets on the day of expiry which is 01-01-2023. In India, traders can only engage in European options.
The options trader can only exercise the call option, that is, buy the underlying assets on the day of expiry which is 01-01-2023. In India, traders can only engage in European options.
Cash Flow Statement
A cash flow statement is used to present the amount of money that has been earned and spent by a business over a specific period of time. There are three sections or parts to a cash flow statement:
- Operating Activities: cash flows from the core activities of a business that generate income as well as cash equivalents (current assets & liabilities)
- Investing Activities: cash flows from investments or sales of long term assets
- Financing Activities: an action or activity that brings a change in a business’ equity capital and/or borrowings
Average True Range Atr
The Average True Range (ATR) is a technical indicator used to measure market volatility, typically using the average of true ranges from 14 periods that can be daily, weekly, monthly, or even intraday values.
The formula for ATR is:
ATR = Previous ATR (n - 1) + True Rangen / n
n= number of periods
True Range = The greater/highest of these:
The formula for ATR is:
ATR = Previous ATR (n - 1) + True Rangen / n
n= number of periods
True Range = The greater/highest of these:
- High - low (Day 1)
- Absolute value of (Day 1’s high - Day 0’s close)
- Absolute value of (Day 1’s low - Day 0’s close)
Dividend Per Share
Dividend per share indicates the amount of dividends paid as a ratio of the number of shares outstanding. Or, dividend per share could also refer to the product of earnings per share and dividend payout ratio.
Thus, the formula to calculate dividend per share is:
DPS: Total dividend amount / Number of shares outstanding
Or
DPS: Earnings Per Share x Dividend Payout Ratio
An investor can determine how much dividends they stand to earn for each share they own by calculating dividends per share.
Thus, the formula to calculate dividend per share is:
DPS: Total dividend amount / Number of shares outstanding
Or
DPS: Earnings Per Share x Dividend Payout Ratio
An investor can determine how much dividends they stand to earn for each share they own by calculating dividends per share.
Book Building
Book building is the process of determining the potential issue price of a financial instrument based on investor demand, generally during an IPO.
Book building is typically done by an underwriter (like an investment bank) who will invite institutional investors like hedge funds, mutual funds, and others to submit bids for the financial instrument.
These bids act as a range that the underwriter can use to fix a price that satisfies the company issuing the security and market participants.
Book building is typically done by an underwriter (like an investment bank) who will invite institutional investors like hedge funds, mutual funds, and others to submit bids for the financial instrument.
These bids act as a range that the underwriter can use to fix a price that satisfies the company issuing the security and market participants.
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