List of useful Acronym/ abbreviation used in Finance

Hello all, Hereby I bring you list of Acronym/ abbreviation that are frequently used in Finance and by people in Stockmarkets. Subscribe my website and sahre with your friends.

ADRs	American Depository Receipts
AY	Assessment Year
AMEX	American Stock Exchange
AY	Assessment Year
BOVL	Branch Order Value Limit
BSE	Bombay Stock Exchange
CDSL	Central Depository Services (India) Limited
CRISIL	Credit Rating Information Services of India Limited
CARE	Credit Analysis & Research Limited
CSD	Collateral Security Deposit
DP	Depository Participant
DPS	Dividend per Share
EMI	Equivalent Monthly Instalment
EPS	Earnings per Share
ETF	Exchange Traded Fund
F&O	Futures and Options
FBR	Financial Blood-Test Report
FCFE	Free Cash Flow to Equity
FCFF	Free Cash Flow to the Firm
FMC	Forward Markets Commission
GDRs	Global Depository Receipts
HUF	Hindu Undivided Family
IOC	Immediate or Cancel
IOSCO	International Organisation of Securities Commission
IPF	Investor Protection Fund
IPO	Initial Public Offer
IRDA	Insurance Regulatory and Development Authority
IRR	Internal Rate of Return
IRS	Interest Rate Swap
ISIN	International Securities Identifi cation Number
ISSA	International Securities Services Association
ITM	In-The-Money
KYC	Know Your Client/Customer
LAF	Liquidity Adjustment Facility
LIC	Life Insurance Corporation of India Limited
LM	Lead Manager
LTP	Last Trade Price
MBP	Market By Price
MFs	Mutual Funds
MMMF	Money Market Mutual Fund
MNCs	Multi National Companies
MOU	Memorandum of Understanding
MTM	Mark-to-Market
NA	Non-Agricultural
NASDAQ	National Association of Securities Dealers Automated Quotation System
NAV	Net Asset Value
NBFCs	Non-Banking Financial Companies
NCDs	Non-convertible Debentures, Non-convertible Debt Securities
NCDEX	National Commodity and Derivatives Exchange Ltd.
NDS	Negotiated Dealing System
NEAT	National Stock Exchange Automated Trading
NGOs	Non-Government Organisations
NIBIS	NSE’s Internet-based Information System
NOC	No Objection Certificate
NPAs	Non-Performing Assets
NRIs	Non Resident Indians
NSDL	National Securities Depository Limited
NSE	National Stock Exchange
NSCCL	National Securities Clearing Corporation Ltd.
NYSE	New York Stock Exchange
OCBs	Overseas Corporate Bodies
OECLOB	Open Electronic Consolidated Limit Order Book
OIS	Overnight Index Swaps
ORS	Order Routing System
OTC	Over-the-Counter Market
OTCEI	Over the Counter Exchange of India Limited
OTM	Out-of the-Money
P/E ratio	Price Earning Ratio
PAN	Permanent Account Number
PAT	Profit After Tax
PSUs	Public Sector Undertakings
PV	Present Value
PY	Previous Year
RBI	Reserve Bank of India
ROCs	Registrar of Companies
RTGS	Real time Gross Settlement
S&P	Standard & Poor
SAT	Securities Appellate Tribunal
SCRA	Securities Contract (Regulation) Act
SCRR	Securities Contract (Regulation) Rules
SEBI	Securities & Exchange Board of India
SGX-DT	The Singapore Exchange Derivatives Trading Limited
SIP	Systematic Investment Plan
SPAN	Standard Portfolio Analysis of Risks
SRO	Self-Regulatory Organisation
SLR	Statutory Liquidity Ratio
STP	Systematic Transfer Plan
SWP	Systematic Withdrawal Plan
T+2	Second day from the trading day
T-Bills	Treasury Bills
TDS	Tax Deducted at Source
TRI	Total Returns Index
ULIP	Unit-linked Insurance Plan
UTI	Unit Trust of India
VaR	Value at Risk
VIX	Volatility Index
XB	Ex- Bonus
XD	EX-Dividend
XI	Ex-Interest
XR	Ex- Rights

How to analyse a company before investing–systematic approach

Industry Analysis:

An industry includes the companies that are producing similar products / services. For example, MRF, Apollo tyres, Ceat, JK tyres belongs to Tyre sector/Industry of India.You have to look at the performance of the industry to which the company belongs. some key factors such as effect of future demand of its products, Government policy, etc. need to be carefully noted. A change in business environment may cause a drastic change towards the industry too. For instance, Approval to import Chinese tyres may cause a huge loss for this tyre industry. Analysing these things are termed as Industry analysis.

Corporate Analysis:

Analysing every single company is termed as Corporate analysis / Company analysis. This is done by looking at company's performance over the past few years and to seek information on its current operations, managerial capabilities, growth plans, and etc.,.

Financial Analysis:

Lets say the performance of an industry as well as of the company seems good, what's next? now check if at the current price, the share is a good buy. This can be understood by looking at the financial performance of the company and by noticing certain key financial parameters such as current size of equity, earnings per share (EPS), profit-earning (P/E) ratio, and  etc. This process is termed as Financial Analysis. These values can be derived from the financial statements of a company that is the Balance sheet and Profit and Loss account that is shown in the annual report of a company.

Download an example of Annual report by JK tyre

Share and subscribe my website and YouTube channel. Give your queries and feedback in comment section.

Present Value (PV) Formula

Present value is a current value of come future cash flow. Present value formula is used to determine the present day value of amount that will be receive at a future date.

Rate of Return formula for any asset

 

The actual profit or loss is measured through the returns achieved from particular investments. Let the investment be in Risky securities ( Stocks, Gold, Oil, commodities , ETF, etc..,) or Risk free securities ( Bonds, fixed deposits, etc..,) . The above shown formula is used to understand the level or rate of return achieved. Positive RR shows there is a profit and negative RR refers to a loss.

Example:

Lets assume, Sulthan bought 10 shares of company A @ Rs100 per share on 28.10.2016. On 1.11.2016 the share price of company increase to Rs106. In this example P₀ is 100 and P₁ is 106. Substituting this in the above RR  formula we get RR is 0.06 . When multiplied by 100 we get 6 which means Sulthan earns 6% profit from his investment.

Leave your queries and feedback in comment section. Subscribe Sulthan academy via email. Share with your friends.