The Indian stock market is a platform where shares or securities of publicly listed companies are traded. The two main stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

A stock, also known as a share or equity, is a unit of ownership in a company. When you buy a stock, you become a shareholder and have a claim on a portion of the company’s assets and profits.

The BSE is the oldest stock exchange in Asia and was established in 1875, while the NSE was founded in 1992. The BSE has more listed companies, but the NSE is larger in terms of trading volume.

The Securities and Exchange Board of India (SEBI) is the regulatory body that oversees the Indian stock market.

A stock index is a benchmark that measures the performance of a group of stocks in the market. The two main stock indices in India are the BSE Sensex and the NSE Nifty.

The BSE Sensex is a stock market index of the BSE that represents the performance of the top 30 companies in terms of market capitalization.

The NSE Nifty is a stock market index of the NSE that represents the performance of the top 50 companies in terms of market capitalization.

Market capitalization is the total value of a company’s outstanding shares. It is calculated by multiplying the number of outstanding shares by the current market price per share.

A stock market crash is a sudden and significant decline in the value of stocks traded in the market. It can be caused by a variety of factors such as economic downturns, political instability, or investor panic.

Insider trading refers to the practice of buying or selling a company’s shares based on confidential information not available to the general public. It is illegal and punishable by law.

A bull market is a market in which stock prices are rising, and investors are optimistic about the future of the economy.

A bear market is a market in which stock prices are falling, and investors are pessimistic about the future of the economy.

A dividend is a payment made by a company to its shareholders from its profits. It is usually paid out in cash or additional shares.

A stock split is a corporate action in which a company increases the number of outstanding shares by dividing each existing share into multiple shares. It is usually done to make the shares more affordable to investors.

A stock buyback is a corporate action in which a company buys back its own shares from the market. It is usually done to increase the value of the remaining shares by reducing the number of outstanding shares.

A mutual fund is an investment vehicle that pools money from multiple investors to invest in a portfolio of stocks, bonds, or other securities.

An initial public offering (IPO) is the first time that a company offers its shares to the public for sale. It is done to raise capital for the company.

A circuit breaker is a mechanism used to temporarily halt trading in the stock market during times of extreme volatility.

Options trading is a type of trading where an investor buys or sells the right to buy or sell a specific asset at a specific price within a specified time frame.

A call option is a type of option that gives the buyer the right to buy a specific asset at a specific price within a specific time frame.

A put option is a type of option that gives the buyer the right to sell a specific asset at a specific price within a specific time frame.

The strike price is the price at which the option can be exercised to buy or sell the underlying asset.

The expiry date is the date on which the option contract expires and the right to buy or sell the underlying asset is no longer valid

The premium is the price paid by the buyer of the option to the seller. It represents the cost of the option and is influenced by factors such as the strike price, expiration date, and market volatility.

A European option can only be exercised on the expiration date, while an American option can be exercised at any time before the expiration date.

An in-the-money option is an option where the strike price is favorable to the buyer. For a call option, this means the market price is above the strike price, and for a put option, it means the market price is below the strike price.

An out-of-the-money option is an option where the strike price is not favorable to the buyer. For a call option, this means the market price is below the strike price, and for a put option, it means the market price is above the strike price.

A covered call is an options strategy where an investor sells call options on a security they already own. This strategy generates income for the investor but limits their potential gains on the security.

A naked call is an options strategy where an investor sells call options without owning the underlying security. This strategy is risky and can lead to unlimited losses if the price of the security rises significantly.

A spread is an options strategy where an investor buys and sells options on the same underlying asset at different strike prices or expiration dates. This strategy can be used to limit risk and increase potential gains.

A collar is an options strategy where an investor buys a put option to protect against downside risk and sells a call option to generate income. This strategy can be used to limit risk and generate income on a security.

Implied volatility is a measure of the market’s expectation of the future volatility of a security. It is calculated based on the price of the options on the security and can be used to inform options trading strategies.

Delta is a measure of the sensitivity of an option’s price to changes in the price of the underlying asset. It ranges from -1 to 1, with a higher delta indicating a greater change in option price for a given change in the underlying asset price.

In options trading, “theta” refers to the measure of how much the price of an option will change due to the passage of time. It is also commonly known as time decay.

Gamma is a measure of how much an option’s delta will change in response to a change in the price of the underlying asset.

Vega is a measure of an option’s sensitivity to changes in implied volatility. It is one of the options Greeks, which are measures of the sensitivity of an option’s price to changes in various factors.

“Option Greeks” are measures of the sensitivity of an option’s price to changes in various factors, such as the underlying asset price, time, implied volatility, and interest rates. They are called “Greeks” because they are named after Greek letters, such as delta (Δ), gamma (Γ), theta (Θ), vega (ν), and rho (ρ).