| Dividend: A portion of a company’s earnings that is distributed as decided by the board of directors to shareholders of the company. It is always calculated a % of face value of a share. |
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| Bonus Issue: An offer of free additional shares to existing shareholders in proportion to their holdings. Face value remains the same in case of bonus issue. |
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| Stock Split: A corporate action in which a company’s existing shares are divided into multiple shares. Face value of the share gets divided by the multiple as declared by the company. |
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| Rights Issue: Offer to existing shareholders to buy proportionate number of additional shares at a given price (usually at a discount to current market price of the share) |
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| Ex-Date: The date on which the seller, and not the buyer, of a stock will be entitled to any recently announced dividend or bonus issue. After the Ex-Date, a stock is said to trade ex-dividend or ex-bonus accordingly. |
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| Record Date: The date established by the company for the purpose of determining the shareholders who are entitled to any dividend, bonus etc. |
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| Buy Back: The repurchase of outstanding shares by a company in order to reduce the number of shares in the market. |
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| Stop Loss Order: When you place a SL order it gets triggered when the price hits the trigger price. Such kinds of orders are placed to protect further losses if a stock starts falling down. |
