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Stock Market Glossary

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GDR (Global Depository Receipt)

It is an instrument issued abroad, listed and traded on foreign stock markets. A GDR is convertible into shares, which are listed and traded on the domestic exchange, the dividend being paid in the domestic currency.

IPO

Initial Public Offer. It is the first offering of equity shares made by a company to the general public. Prior to the IPO the company's shares are held by a select group of people and are not available to the public.

Liquidity

Liquidity refers to the amount of transactions in a particular counter, the larger the volume of trading, higher the liquidity.

Listed securities

Securities listed on a stock exchange, as opposed to 'permitted securities', which are not listed but can be traded on the exchange.

Lyon's Range

Calcutta Stock Exchange.

Market capitalisation

Market Capitalisation is the total market value, at the current stock exchange list price multiplied by the total number of equity shares issued by a company.

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