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A Group Shares::
- Scrips having very high liquidity
- Company having large equity base and large public holding
- Company having consistently good performance over the years.
Group A Scrips are eligible for badla transaction.
B1 Group Shares:- Scrips having high liquidity
- Company having an equity above Rs 30 million
- Company having fundamentals and financial parameters in line with the industry.
B2 Group Shares:- Scrips having low trading below par value at the BSE
- Company having an equity below Rs.30 million
- Company's shares being not widely held
- Company having surveillance measure initiated against it by the BSE for suspected price manipulations.
A- AA Crisil:
A, B1 & B2 Group shares : Classification The BSE classifies its listed shares as Group A, B or B2 shares. The classification of Group A shares is made on the basis of the following attributes. The attributes are taken as guiding factors and their totality is taken into account.No single factor is considered in isolation. The BSE continuously reviews the scrips for reclassification. Therefore, the number of stocks in each group is subject to change.
Above Par:
Above Par The par value of a share is its face value. When the share price is above its face value, it is above par.
Absorbed In the stock market context:
Absorbed In the stock market context it means that an issue has been fully sold to the public by an underwriter.
Acceleration Clause:
Acceleration Clause A clause in a loan or mortgage agreement which stipulates that in certain events of default the unpaid balance will become due. The events may include failure to pay interest, a principal, or non-payment of taxes on the mortgaged property.
Account A period:
Account A period during which transactions in stock exchanges can be made without immediate cash settlement. Transactions made during the account period are noted, to be settled on the ACCOUNT DAY. This enables the speculators to do business with the minimum amount of cash.
Account Day or Settlement Date:
set aside for settlement of accounts, i.e., transactions between members of a stock exchange; usually every alternate Friday, Accounts may be carried over from one account day to the next on payment of CONTANGO or BACKWARDATION.
Account Payable:
A term appearing on the liabilities side of balance sheets, meaning sums the company owes its regular business creditors from whom it has bought goods or services on credit. Buying on credit, in a sense, is an important addition to WORKING CAPITAL, although the interest cost ( built into the price of supplies on credit) can be considerable.
Account Receivable:
A term appearing on the assets side of the balance sheets, meaning debtors to the company. Opposite of ACCOUNTS PAYABLE.Since some of the company's debtors fail to pay because of financial difficulties, a realistic estimate of accounts receivable deducts an amount representing debts considered doubtful. It measures when the total credit sales of a company for the accounting period is divided by accounts receivable and the sum arrived shows that accounts receivable have been collected a satisfactory number of times.
Account Statement:
When an account with a broker is active, he periodically issues a statement to his client, featuring all transactions, including long and short positions .
Accounting Concept:
The four important concepts are: on-going concern concept(see entry), accruals concept (see ACCRUALS BASIS): consistency concept(see entry), and prudence concept(see entry).
Accounting Year:
According to the COMPANIES (AMENDMENT) ACT 1988, the accounting year of all public limited companies will be April 1 to 31 March, with effect from 1989-90.
Accounts Receivable Financing:
Short-term financing of a company in which the company's accounts receivables serve as collaterals of a loan.
Accounts Receivable Turnover Ratio:
This is obtained by dividing the total credit sales by the ACCOUNT RECEIVABLE. The ratio shows how many times the receivables have been collected. The larger the ratio, the healthier the picture.
Accrual A charge or obligation to pay incurred, but not yet paid:
E.g.. power consumption, bill, or any other expenses incurred but not paid. Good accounting practice takes note of such accruals in preparing accounts.
Accrual Basis Accounting method:
Accrual Basis Accounting method in which income and expenditure are entered as and when earned or incurred, although they may not have been received or paid.
Accumualtion Unit:
See REINVESTMENT PLAN.
Accumulated Depreciation:
Depreciation up to date, not just one particular year's.
Accumulated Dividend:
Dividend due to prefrence shareholders, not paid, Skipped or passed dividends do not accrue to equity shareholders, who also cannot be paid any dividend until dues of prefrence shareholders are met.
Accumulated Profits:
The amount of profit, after payment of dividend, taxes, and providing for depreciation, that is carried forward to the next year's account.
Accumulation Area:
A term used by the technical analysts when the price of a share moves within a narrow range of ups and downs over a period. In the graph it will show as a sideways movement. Technical analysts interpret this as accumulation or buying activity and predict a price breakthrough in an upward direction.
Accumulation Careful and planned:
Accumulation Careful and planned buying of a company's shares in small numbers so as not ot push the price up or attract attention, but gradually building up a large holding in the company.
Acid Test Ratio:
See QUICK RATIO.
Across the Board:
Any movement in share prices which affects all the shares in the same direction, up or down.
Acting in Concert:
When two or more investors act together with the same goal, e.g. buying or selling shares of a particular company to push the price up or down, or accumulating stocks with the eventual purpose of securing a controlling interest in a company, they are acting in concert. See CONCERT PARTY.
Active Market:
Characterized by frequent and large volume of trading of a particular share in general. In such a market the gap between buying and selling prices is narrow. Also, in such a market the buying or selling activities of financial institutions tend to have a lower impact than in a DULL MARKET.
Active Shares:
Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week.Easy to buy or sell.
Actuals Trading:
which result in the delivery of a physical commodity (grain, gold, meat etc.) to the buyer at the expiry of the contract. If FUTURES and OPTIONS contracts are terminated before the expiry of the contract, these do not end in actual delivery;even then since the trading is in physical commodities, it would qualify as actual trading.
An across the board:
settlement with the employees of a company affects all of them- from the highest paid to the lowest paid.
Aquisition Big fish eating little fish:
One company taking over controlling interest in another company. Since high prices are often paid to acquire shares of the target company, clever investors often make a tidy profit by exploiting the situation. See TAKEOVER.
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