Share market reports

Share market report

by

Prof. Kamlesh Joshi

Share market reports

• Meaning:• Our common understanding about

the market is that it is located at a

particular place. What is necessary

is the contact between buyers and

sellers. Thus market is a series of

contacts between buyers and sellers.


• It is not necessary that they have to meet at a particular place. They come into contact directly or through middlemen called dealers, agents or brokers etc.

Share market reports• Types of Markets:

(a) The Commodities

Markets:

(b) The Capital

Market:


(a) Commodities Market:

1. The Grain Market

2. Vegetable Market

3. The Cotton Market

4. The Bullion Market

5. The Sugar Market

6. The Metal Market


(b) The Capital Market:

1. The Money Market.

It is the collective name

given to the various firms

and institutions which deals

in money.

2. The Share Market.


• Share Market:

Share market helps to mobilize

scattered savings of the community.

The formation and accumulation of

capital is the master-key to

economic growth. With the adoption

of the policy of privatization and globalization

in India, the share market has assumed the much importance.

Share market reports• The share market has many Stock Exchanges

like the Stock exchange of Mumbai, Stock exchange of Delhi, Stock exchange of Ahmedabad and so on.

• Members of the exchange act as brokers or deal on their own, buy and sell shares, sometimes as BULLS and some times as BEARS.


• Stock market is a

mechanism through

which buyers and sellers

come into close contact

with each other.


• Share market is a highly

sensitive. It immediately

reacts to natural factors like

good rains, famine, earth-

quake etc. or man-made

factors like war, riots,

political events etc.


• It is sensitive to even small

events taking place in the

international markets. It is said

that “ NASDAQ sneezes, the BSE

Sensex catches cold. • Stock market is considered as

a barometer of the economy.

• Most of the share markets are known by the names of the places-streets in they are located like Mumbai stock market is known by ‘The Dalal Street’, The New York share market is known by ‘The Wall street’.


Share market reports• July 2, 2001 will be a historic day for Indian

Capital markets because there were major changes pertaining to system of trading. First of all ‘BADLA system’ which was in operation for the last 135 years, has been replaced by ‘Rolling Settlement’ means all transactions are to be made on daily basis only.


• As many as 246 scripts have

been enlisted for the rolling

settlement system.• In BADLA System share brokers

could carry out speculative (Satta) activities

by indulging into arbitrating (legal dispute

solution). This was possible because the

settlement days were different in NSE and BSE.


• So they could transfer their

deal from one market to another

market and could get maximum

profit by paying nominal amount

as margin.

• Simultaniously, the SEBI has taken

another major decision to widen the

‘Derivative Market’ means the future

and option trading system of NSE

which provides fully automated

screen-based trading facilities on a

national wide basis through more than

7000 terminals located throughout the country in all cities.


• It also contains monitoring and surveillance mechanism.


• Share market report:• Share market report describes

the trends, transactions and

fluctuations taking place in the Stock

Exchange during a specific period.

These trends and fluctuations are

expressed in technical terms

and phrases.


• Therefore it is necessary to accuire the knowledge of these terms and phrases. This will enable us to comprehend the report properly. Now let’s understand the technical terms.

1. Account day:

as settlement day on which

actual delivery of the securities and

payment are settled.

2. Aggressive stock:

Displays considerable volatility

in the price.

3. At a premium:

a price which is higher than the printed price on the share certificate.

Share market reports4. Backwardation: ( Ulta Badla)

a bear sells assuming fall in the price of share but fall does not happen. In this situation he has option to buy shares for delivery.

5. Bear:

a bear operator is a speculator who

operates with the assumption that price

of shares will fall so he starts selling in

advance and again at cheaper rate purchases the same shares.

6. Bear market:

the share price decreases

continuously for long period.

7. Bid and offer:

price which a prospective

buyer is prepared to pay for

any script, is bid. Offer is the

price at which a share is offered for sale.

8. Bourses:

different stock exchanges are called bourses.

BSE,NSE etc.

9. Bull:

for an operator who believes

that the prices are going to up.

Purchases are made by him is

known as ‘Bull support’.

10. Buy back:

purchase of debentures before

stipulated period at a discount by the company.

11. Call option:

Right to buy a fixed number of shares at particular price within a fixed period.


12. Carry forward trading:

in trading the settlement is

postponed to the

next accounting period in

which buyers pays interest/charges

(contango ) on borrowed funds.

Share market reports13. Circuit breakers/Circuit filters:

a mechanism by which exchanges temporarily suspend trading when the prices are volatile.

14. clearing:

All the transactions are settled between members.

Share market reports15. Debenture:

refers to a debt security

issued by company having

certain maturity and bearing

certain interest. Debentures

may be secured or unsecured

by assets as land and building

of issuing company.

16. Derivative:

a financial contract that

derives its value from another

assets value.

17. Domestic institution:

central government and SEBI

have given authority to UTI, LIC,

IDBI, ICICI etc. to buy or sell shares.

They are called domestic

institutions as compared to Foreign

Investment Institution(FII).

18. Hectic buying:

19. Industrials:

shares of the companies

engaged in sectors like utilities,

services, transportation etc.

19. Sensex :

refers to a stastistical measure of the prices of 30 selected stocks traded on the BSE.

(sensitive index)

20. National Index:

BSE consists of only 30 stocks

listed on BSE where as National

index consists of 100 stocks listed

nation wide on different stock

exchanges which has been develo-

-ped by statistics department of

Bombay Stock Exchange. So it is more

representative of stock market.

Share market reports21. Nifty :

a selected group of fifty

shares of NSE of India.

22. Odd lot:

generally transactions are

done in lots of 100 or 50 shares

which is called market lots. Any

number of shares less than the market lot is odd lot.

23. Option:

a contract that gives the holder

the right to buy or sell a certain

number of shares of a company at a

specified price.

24. Primary market:

is a market for new issue of shares, debentures and bonds where investors directly apply to the issuer ( company).

Share market reports25. Profit booking:

selling of shares for profit whose prices have risen suddenly.

26. Rolling settlement:

the transaction is settled on the same

day.

27. Secondary market:

where the securities that have already been issued are traded


28. Specified shares:

certain stocks in which

transactions can be forw

-arded which are also known as A group shares or cleared securities.

29. Spot trading:

the practice of trading by delivering shares and making payment on the same date or next day.

• upward trend1. Zoom

2. Soar

3. Limelight

4. Spur (encourage)

5. Revival (come back to life)

6. Boost

7. Upsurge(sudden increase)

8. Sky rocket (upward movement)

Special words for share market:

9. Recoup (compensate for loss)

10. Vault (jump)

11. Heyday (most successful

period)

12. Boom (growth)

13. Upswing (improvement)

14. Hectic (busy and fast)

15. Rebound (spring back)

16. Decline (go down)

17. Retreat (withdraw)

18. Slump (recession)

19. Onslaught ( powerful attack)

20. Tumble (fall quickly uncontrolled)

21. Jittery ( frightened)

22. Panic (strong feeling of anxiety)

23. Reluctant (hesitant)

Down ward trend

Share market reports24. Havoc (devastation)

25. Rampant (getting worse quickly and uncontrolled)

26. Crucial (very important)

27. Peak

Example

Education

Share market reports