Glossary

B

• Buyer of an option The party who, through purchase, acquires the right conveyed by the option. Also commonly referred to as the option holder, where the purchase is to open a position
• Buying forward Buying commodities at a specified price for delivery at a future date.
• Buy-Write Purchase of stock and simultaneous writing of call options against stock position.
• Calendar This refers to upcoming IPOs and secondary offerings.  
• CCI Cotton Corporation of India
• CIF Cost, Insurance & Freight
• Clearing Price The price at which all shares of an IPO can be sold to investors in a Dutch Auction. Sometimes referred to as the “market-clearing price”.
• Closed Book  Under closed book building, the book is not made public and the bidders will have to take a call on the price at which they intend to make a bid without having any information on the bids submitted by other bidders.
• Closed-ended fund This refers to the type of fund where investors have to commit their money for a particular period of time. The units of the fund can be availed from the fund house only during the NFO period, after which the units of the fund can be purchased from the market. Closed-ended funds have to be necessarily listed on recognized stock exchanges and an investor can exit from the fund at any point of time.  
• Co-Manager Most initial public offerings and secondary offerings have more than one underwriter. The manager controlling the offering is called the lead manager. Other underwriters are co-managers. The names of these underwriters appear on the bottom of the front page of the prospectus, with the most important manager appearing on the top left, and the co-managers arrayed from left to right in order of importance.