Investment Vs

Speculation
ICCL Indian Clearing Corporation Limited ("ICCL") was incorporated in
2007 as a wholly owned subsidiary of BSE Ltd. ... ICCL carries out the
functions of clearing, settlement, collateral management and risk
management for various segments of BSE.
SEBI The Securities and Exchange Board of India (SEBI) is the regulator for
the securities market in India.
SEBI has to be responsive to the needs of three groups, which
constitute the market:
• issuers of securities
• investors
• market intermediaries
SEBI has three functions rolled into one body: quasi-legislative,
quasi-judicial and quasi-executive. It drafts regulations in its
legislative capacity, it conducts investigation and enforcement
action in its executive function and it passes rulings and orders in its
judicial capacity.

NSCCL NSE Clearing Limited (NSE Clearing) (formerly known as National Securities
Clearing Corporation Limited, NSCCL), a wholly owned subsidiary of NSE is
responsible for clearing and settlement of all trades executed on NSE and
deposit and collateral management and risk management functions.
Custodians In general, a custodian is a bank or a financial institution that holds
financial securities such as stocks, bonds, gold, etc. So basically,
custodians are involved in having the custody of securities/ shares
A Depository facilitates holding of securities in the electronic form and
CDSL enables securities transactions to be processed by book entry. The
Depository Participant (DP), who as an agent of the depository, offers
depository services to investors. According to SEBI guidelines, financial
institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs.
The investor who is known as beneficial owner (BO) has to open a demat
account through any DP for dematerialisation of his holdings and
transferring securities.
NSE The National Stock Exchange of India Ltd. (NSE) is the leading stock
exchange in India and the second largest in the world by nos. of trades in
equity shares from January to June 2018, according to World Federation of
Exchanges (WFE) report.
BSE The Bombay Stock Exchange (BSE) is the first and largest securities market
in India and was established in 1875 as the Native Share and Stock Brokers'
Association. Based in Mumbai, India, the BSE lists close to 6,000
companies and is one of the largest exchanges in the world, along with the
New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange Group,
Japan Exchange Group, and Shanghai Stock Exchange.
MCx The Multi Commodity Exchange of India Limited (MCX), India’s first listed
exchange, is a state-of-the-art, commodity derivatives exchange that
facilitates online trading of commodity derivatives transactions, thereby
providing a platform for price discovery and risk management. The
Exchange, which started operations in November 2003, operates under
the regulatory framework of Securities and Exchange Board of India (SEBI).
NCDEX National Commodity & Derivatives Exchange Limited (NCDEX) is an online
commodity exchange based in India. It has an independent board of
directors and provides a commodity exchange platform for market
participants to trade in commodity derivatives
NSDL NSDL, the first and largest depository in India, established in August 1996
and promoted by institutions of national stature has established a state-of-
the-art infrastructure that handles most of the securities held and settled
in dematerialized form in the Indian capital market.
Price Bands A price band is a value-setting method in which a seller indicates an upper
and lower cost limit, between which buyers are able to place bids. The
price band's floor and cap provide guidance to the buyers.
Circuit Breaker Circuit breakers are measures approved by the SEC to curb panic-selling on
U.S. stock exchanges and excessive volatility—large price swings in either
direction—in individual securities. Also known as "collars," circuit breakers
temporarily halt trading on an exchange or in individual securities when
prices hit pre-defined tripwires,
Margin Calls A margin call occurs when the value of an investor's margin account (that
is, one that contains securities bought with borrowed money) falls below
the broker's required amount. A margin call is the broker's demand that an
investor deposit additional money or securities so that the account is
brought up to the minimum value, known as the maintenance margin.
Mark to Margin If the current market value causes the margin account to fall below its
required level, the trader will be faced with a margin call. An exchange
marks traders' accounts to their market values daily by settling the gains
and losses that result due to changes in the value of the security
VaR Margins In the stock exchange scenario, a VaR Margin is a margin intended to cover
the largest loss (in %) that may be faced by an investor for his / her shares
(both purchases and sales) on a single day with a 99% confidence level.
The VaR margin is collected on an upfront basis (at the time of trade).
Variation Margin Variation Margin, also known as Mark To Market Margin, is additional
amount of cash you are required to deposit to your futures trading
account after your futures position have taken sufficient losses to bring it
below the "Maintenance Margin".
Initial Margin An initial margin is the amount of a margin account as a percentage of the
investment purchased on margin.
Margin A Margin Requirement is the percentage of marginable securities that an
Requiremenst investor must pay for with his/her own cash. It can be further broken
down into Initial Margin Requirement and Maintenance Margin
Requirement.
Impact cost Impact cost is the cost that a buyer or seller of stocks incurs while
executing a transaction due to the prevailing liquidity condition on the
 counter. In other words, it represents the cost of executing a transaction
of a given security, with a specific predefined order size, at any given point
in time.
Bad delivery Describing a stock that cannot be transferred, especially because of
improperly filed paperwork or another fairly innocuous reason. In other
words, the delivery of such a stock is only stopped by legal and/or
regulatory rules
Pay in and pay Pay in day is the day when the brokers shall make payment or delivery of
out securities to the exchange. Pay out day is the day when the exchange
makes payment or delivery of securities to the broker. Settlement cycle is
on T+2 rolling settlement basis w.e.f. April 01, 2003.
Rolling A rolling settlement is the process of settling security trades on successive
settlement dates based upon the specific date when the original trade was made so
that trades executed today will have a settlement date one business day
later than trades executed yesterday
Predatory Predatory trading is a strategy in which a trader can profit by trading
trading against another traderhs position, driving an otherwise solvent but
distressed trader into insolvency.
Flash crash A flash crash is a very rapid, deep, and volatile fall in security prices
occurring within an extremely short time period.
Flash Order Flash trading, otherwise known as a flash order, is a marketable order sent
to a market center that is not quoting the industry's best price or that
cannot fill that order in its entirety.
Dark Pool A dark pool is a private financial forum or exchange for trading securities.
Dark pools allow investors to trade without exposure until after the trade
has been executed.
Co location

Algo trading Algorithmic trading (automated trading, black-box trading,or simply algo-
trading) is the process of using computers programmed to follow a defined
set of instructions for placing a trade in order to generate profits at a
speed and frequency that is impossible for a human trader.
High Frequency High-frequency trading (HFT) is an automated trading platform used by
trading large investment banks, hedge funds and institutional investors that
utilizes powerful computers to transact a large number of orders at
extremely high speeds.
Call auction A call auction is where participants buy or sell units of a good. At a call
auction, participants place orders to buy or sell units at certain buying or
selling prices. Orders collected during a call auction are matched to form a
contract
Lot size In the financial markets, a lot represents the standardized number of units
of a financial instrument as set out by an exchange or similar regulatory
body. The number of units is determined by the lot size. In the stock
market, most stocks trade in a lot size of 100 shares, although some higher
priced stocks may trade in lots of 10 shares. Each market has its own lot
size.
Intra day trading nlike an equity investor who buys stocks with the intention to invest,
intraday trading is about buying and selling your holdings during the same
trading day.
Margin trading Margin trading also refers to intraday trading in India and various stock
brokers provide this service. Margin trading involves buying and selling of
securities in one single session.
Bulk deal Bulk deal is a trade, where total quantity bought or sold is more than 0.5%
of the number of equity shares of a listed company.
Block deal Block deal is a trade, with a minimum quantity of 5 lakh shares or
minimum value of Rs. 5 crore, executed through a single transaction, on
the special "Block Deal window". The window is opened for only 35
minutes in the morning trading hours.
Tick tick time,
size
Short selling Short selling is an investment or trading strategy that speculates on the
decline in a stock or other securities price. It is an advanced strategy that
should only be undertaken by experienced traders and investors.
Order book An order book is an electronic list of buy and sell orders for a specific
security or financial instrument organized by price level. An order book
lists the number of shares being bid or offered at each price point, or
market depth. It also identifies the market participants behind the buy and
sell orders, though some choose to remain anonymous.
Stop loss order A stop-loss order—also known as a stop order—is a type of computer-
activated, advanced trade tool that most brokerages allow. The order
specifies that an investor wants to execute a trade for a given stock, but
only if a specified price level is reached during trading.
Limit order A buy limit order is an order to purchase an asset at or below a
specified price, allowing traders to control how much they pay. By using a
buy limit order, the investor is guaranteed to pay that price or less. While
the price is guaranteed, the filling of the order is not.
Market order A market order is a request by an investor – usually made through a broker
or brokerage service – to buy or sell a security at the best available price in
the current market.
Bid ask spread A bid-ask spread is the amount by which the ask price exceeds the bid
price for an asset in the market. The bid-ask spread is essentially the
difference between the highest price that a buyer is willing to pay for an
asset and the lowest price that a seller is willing to accept.
Ask
Bid
OTC
Matching engine
Open outcry
Market marker
Broker dealer A broker-dealer is a person or firm in the business of buying and selling
securities for its own account or on behalf of its customers.
Broker market vs
dealer market
Pvt placement Raising adequate capital is integral to building and growing a business, and
companies usually go the initial public offering (IPO) route. An alternative
is the capital raising event known as a private placement. A private
placement involves the sale of securities to a relatively small number of
select investors. Investors targeted include wealthy accredited investors,
large banks, mutual funds, insurance companies and pension funds.
Book building Book building is the process by which an underwriter attempts to
determine the price at which an initial public offering (IPO) will be offered.
Types of auction
Auction
Due diligence Due diligence is an investigation or audit of a potential investment or
product to confirm all facts, that might include the review of financial
records. Due diligence refers to the research done before entering into an
agreement or a financial transaction with another party.
Underwriting Underwriting is the process through which an individual or institution
takes on financial risk for a fee. The risk most typically involves loans,
insurance, or investments. The term underwriter originated from the
practice of having each risk-taker write their name under the total amount
of risk they were willing to accept for a specified premium.
Lead manager
ETF An exchange-traded fund (ETF) is a collection of securities—such as
stocks—that tracks an underlying index. The best-known example is the
SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index. ETFs can contain
many types of investments, including stocks, commodities, bonds, or a
mixture of investment types. An exchange-traded fund is a marketable
security, meaning it has an associated price that allows it to be easily
bought and sold.
PVT Equity
Hedge Fund Hedge funds are alternative investments using pooled funds that employ
different strategies to earn active return, or alpha, for their investors.
Hedge funds may be aggressively managed or make use
of derivatives and leverage in both domestic and international markets
with the goal of generating high returns (either in an absolute sense or
over a specified market benchmark).
Mutual Funds A mutual fund is a type of financial vehicle made up of a pool of
money collected from many investors to invest in securities such as stocks,
bonds, money market instruments, and other assets. Mutual funds are
operated by professional money managers, who allocate the fund's assets
and attempt to produce capital gains or income for the fund's investors. A
mutual fund's portfolio is structured and maintained to match the
investment objectives stated in its prospectus.
Merchant A merchant bank is a company that conducts underwriting, loan services,
banking financial advising, and fundraising services for large corporations and high
net worth individuals. Unlike retail or commercial banks, merchant banks
do not provide services to the general public.
Nbfcs Non-banking financial companies (NBFCs) are financial institutions that
offer various banking services but do not have a banking license.
 Generally, these institutions are not allowed to take traditional demand
deposits—readily available funds, such as those in checking or savings
accounts—from the public.
Institutional An institutional investor is a nonbank person or organization that trades
investor securities in large enough share quantities or dollar amounts that it
qualifies for preferential treatment and lower commissions.
Insidertrading Insider trading is the buying or selling of a publicly traded company's stock
by someone who has non-public, material information about that stock.
Insider trading can be illegal or legal depending on when the insider makes
the trade. It is illegal when the material information is still non-public.
Noise trader Noise trader is generally a term used to describe investors who make
decisions regarding buy and sell trades without the support of professional
advice or advanced fundamental analysis.
Arbitrage the simultaneous buying and selling of securities, currency, or
commodities in different markets or in derivative forms in order to take
advantage of differing prices for the same asset.