Stock Market Glossary-I

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.

Index Shares :
Index-based Investment products that let you Buy or sells Shares of entire portfolios of Stock in a single security.

Indexed bond :
Bond whose payments are linked to an index.

Joint stock company :
A form of business organization that falls between a Corporation and a partnership. The Company sells stock, and its shareholders are free to Sell their stock, but shareholders are liable for all debts of the company.

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

Liquid market :
A Market allowing the buying or selling of large quantities of an Asset at any time and at low transactions costs.

Liquidation:
Any transaction that offsets or closes out a previously established long or short position; also known as buying in or covering.

Long position:
Owning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold). For equities, a Long position occurs when an individual owns securities. An owner of 1,000 Shares of Stock is said to be "Long the stock."