Learn CSE Investing
Practical guides for Colombo Stock Exchange investors. From opening your first CDS account to reading a company's annual report, this section covers the concepts you need to invest with confidence.
The goal is not to overwhelm you with jargon. Each topic is written in plain language, then anchored to how decisions are actually made in Sri Lanka: understanding valuation, checking risk, reading market context, and matching investments to your own time horizon and cash-flow needs. If you are new, start at the glossary and move through the learning path below. If you already invest, use this page as a refresh and quick reference before placing trades.
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Investing Glossary
30 key terms explained in plain English, with CSE context.
Indices & Benchmarks
ASPI – All Share Price Index
The ASPI is the broadest benchmark index for the Colombo Stock Exchange, tracking the price movements of all ordinary shares listed on the CSE.
S&P SL 20 Index
The S&P SL 20 is a blue-chip index tracking the 20 most liquid and largest companies on the Colombo Stock Exchange.
Market Concepts
Turnover (Trading Turnover)
Trading turnover is the total value of shares traded on the exchange or in a specific stock during a given period, typically expressed in LKR.
Volume (Share Volume)
Volume is the total number of shares traded in a stock or across the entire market during a trading session.
Liquidity
Liquidity describes how easily a stock can be bought or sold in the market without significantly affecting its price.
Market Breadth
Market breadth measures the participation level of the overall market by counting how many stocks are advancing versus declining on a given day.
Valuation Metrics
Market Capitalisation
Market capitalisation is the total market value of a company's outstanding shares, calculated by multiplying its share price by the number of shares on issue.
P/E Ratio – Price to Earnings
The price-to-earnings ratio compares a company's share price to its earnings per share, showing how much investors are paying for each rupee of profit.
Earnings Per Share (EPS)
Earnings per share is the portion of a company's profit allocated to each outstanding ordinary share.
Dividend Yield
Dividend yield expresses a company's annual dividend payment as a percentage of its current share price, showing the income return per rupee invested.
Corporate Actions
Dividend
A dividend is a portion of a company's profits paid out to shareholders, usually expressed as a fixed amount per share.
IPO – Initial Public Offering
An IPO is the process by which a private company offers its shares to the public for the first time by listing on a stock exchange.
Rights Issue
A rights issue is when a listed company offers existing shareholders the right to purchase additional new shares at a discounted price, typically in proportion to their current holdings.
Bonus Shares
Bonus shares are free additional shares issued to existing shareholders in proportion to their current holdings, funded from the company's retained earnings or reserves.
Trading & Orders
Stop-Loss
A stop-loss is a pre-set price level at which you commit to selling a stock to limit your downside if the trade moves against you.
Market Order vs Limit Order
A market order buys or sells immediately at the best available price; a limit order only executes at your specified price or better.
Instruments & Securities
Debenture
A debenture is a type of fixed-income debt instrument issued by a company, which pays the holder regular interest and repays the face value at maturity.
Warrant
A warrant gives the holder the right, but not the obligation, to purchase a company's shares at a set price before a defined expiry date.
Accounts & Regulation
CDS Account
A CDS (Central Depository System) account is the mandatory electronic account that holds your CSE share ownership records in dematerialised form.
CSE – Colombo Stock Exchange
The Colombo Stock Exchange is Sri Lanka's only licensed stock exchange, where shares of listed companies are bought and sold during regulated trading hours.
SEC – Securities and Exchange Commission
The Securities and Exchange Commission of Sri Lanka is the government regulator responsible for overseeing and regulating the country's capital markets.
Stockbroker / CSE Member Firm
A stockbroker is a licensed firm (CSE member) authorised to execute buy and sell orders on behalf of investors on the Colombo Stock Exchange.
Suggested Learning Path
If you are starting from scratch, this sequence helps you build confidence step by step. You can finish one level before moving to the next, or jump directly to areas where you need clarity.
Level 1
Market Basics
Learn ASPI, market cap, turnover, and breadth so daily market moves make sense.
Start with ASPI →Level 2
Company & Valuation
Understand P/E, earnings, dividends, and how to compare business quality before buying.
Study valuation terms →Level 3
Risk & Execution
Position sizing, entry planning, and downside awareness before placing any order.
Open risk tool →Advertisement
Investor Calculators
Free tools for position sizing, income estimation, and cost tracking.
Average Cost Calculator
Calculate your average cost per share across multiple buy lots and see your unrealised P&L.
Dividend Calculator
Estimate your annual dividend income based on shares held, dividend per share, and yield.
Position Size Calculator
Work out the right position size given your portfolio, risk tolerance, and stop-loss level.
How to use Learn + Tools together
A practical workflow is: read a concept in the glossary, validate your understanding on the live market heatmap, and then run a calculator to test the impact on your own portfolio assumptions. This avoids learning in isolation and helps translate theory into repeatable decisions.
Frequently Asked Questions
Is this content beginner friendly?
Yes. Definitions are written first for beginners, then extended with practical context for intermediate investors.
Do these guides provide buy or sell calls?
No. Learn content is educational and not personalized advice. Use it to improve your process, then verify facts independently.
What should I read first before my first CSE trade?
Start with ASPI, CDS account, order types, and position sizing. Then use the heatmap and a watchlist to practice reading daily moves.
Ready to see the live market?