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Finance GlossaryInternal Rate Of Return
Internal Rate Of Return
Definition of Internal Rate Of Return
Internal Rate Of Return (IRR) is used to measure the compound annual return generated by a financial asset. IRR is a tool in Discounted Cash Flow financial analysis that operates by bringing the Net Present Value (NPV) of cash flow to zero. That’s why IRR can be used to compare a variety of financial assets from the equity market or bond market to real estate.
Related Terms
Equity Trading
Equity trading refers to the buying and selling of equity shares on the primary and secondary market, either through a stock exchange or over the counter. Trading equity is done in many ways.
Some equity traders square-off their positions within one trading day. This is called intraday equity trading. Others look to ride price swings across days, weeks, or months. This is known as swing equity trading.
An individual who wants to engage in equity trading will need to open a trading & demat account. The charge for opening an equity trading account varies but the process is relatively simple.
Some equity traders square-off their positions within one trading day. This is called intraday equity trading. Others look to ride price swings across days, weeks, or months. This is known as swing equity trading.
An individual who wants to engage in equity trading will need to open a trading & demat account. The charge for opening an equity trading account varies but the process is relatively simple.
Net Asset Value (NAV)
Net Asset Value (NAV) indicates the value of one unit of an investment fund at a given point in time. It reflects the fund’s total assets after expenses, spread across all outstanding units, and helps investors track how the fund’s value changes from day to day.
Commodity
A commodity refers to physical goods and raw materials like aluminium, cotton, copper, sugar, steel, zinc, and others. Commodities are an essential part of the day-to-day life of individuals, companies, and industries.
But they can’t be traded like stocks in India. Instead, a commodity trader will enter into either of these three contracts to secure commodities or benefit from its price fluctuations:
But they can’t be traded like stocks in India. Instead, a commodity trader will enter into either of these three contracts to secure commodities or benefit from its price fluctuations:
- Futures contracts
- Options contracts
-
Cash contracts
These derivative contracts are traded on commodity exchanges in India like:
- Indian Commodity Exchange (ICEX)
- Multi Commodity Exchange of India (MCX)
- National Commodity & Derivatives Exchange Limited (NCDEX)
- National Multi Commodity Exchange of India (NMCX)
Listing
Listing is the process of a private company making its shares available for trading to the public on a recognized stock exchange. To do so, the company meet regulatory requirements and checks. Getting approval means going public and welcoming bids from potential investors.
Relative Vigor Index (RVI)
The Relative Vigor Index (RVI) is a technical oscillator comparing the closing price to the opening price relative to the day’s trading range, smoothed over periods. Positive values show bullish vigor as closes exceed opens, while negative signal bearish weakness. It helps confirm trends and spot divergences, often used alongside other indicators for trading signals.
Tick Size
Tick size is the minimum price movement allowed for a security in a given market. It determines how prices can change and at what increments orders can be placed. Tick size influences liquidity, bid-ask spreads, and execution precision, particularly in high-volume trading environments.
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