The market in which odd lot orders are recorded. Odd Lot orders have a quantity less than one regular lot. A number of shares that are less than the market lot are known as odd lots. These shares are illiquid in nature, as they cannot be transacted on the Exchange.

A time period in the trading day for the different markets that the exchange deals in. Order entry, matching, inquiries and other functions at the workstation will be allowed during this period.

The price range for a security on a trading day such that buy orders outside the Maximum of the range and sell orders outside the Minimum of the range causes a price freeze and are sent to the Exchange for approval. It is calculated as a percentage of the Base price.

A buy or a sell offer/bid for any of the Capital Market securities entered by the dealer in the system. The system generates a unique order number for each order entry.

A percentage of the outstanding quantity of a security is ascertained. An order with quantity exceeding this percentage causes a freeze and is sent to the Exchange for approval.

This is meant to denote that in a bonus issue declared a bonus share has been given for every share held. In effect the share capital of the company doubles. Other terms commonly used to denote the proportion of bonus shares issued are two for three, three for five and the like.

The holder of an option contract has the right but not the obligation to buy (call option) or sell (put option) a specific quantity of a given asset at a specified price at or before a specified date in the future. The purchaser pays a non-refundable, one time fee (option premium) to the seller (writer) to acquire this right. If the holder chooses to exercise the right to buy or sell the asset, the writer of the option has to deliver or take delivery of the asset. The potential loss to the option writer is therefore unlimited.

Order Driven Trading

In an order driven system, only different types of orders supply liquidity to the market without the intervention of a market maker or jobber. Order execution follows a strict price time, priority unlike a quote driven system, where preference is given to jobber orders at the expense of public orders. This reduces the problems of high spreads, monopoly power and market manipulation. Orders which are allowed into the system are conditional upon price (market and limit orders), time (GTD, GTC, etc.), quantitity (AON, MF, etc.) and other special conditions such as IOC, etc.

Over The Counter (OTC)Trading

A secondary market in which shares are bought and sold to the general public by jobbers and brokers outside an organised market place. Generally, the OTC market consists of geographically diffused dealers.

Oversubscribed

A company may offer for sale a certain number of shares. If applications are received for shares in excess of the number offered, the issue is termed as oversubscribed.