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Share market reports

Share Market Reports For Commerce Students

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Share market reports

  1. 1. Share market report by Prof. Kamlesh Joshi
  2. 2. 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.
  3. 3. Share market reports • 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.
  4. 4. Share market reports • Types of Markets: (a) The Commodities Markets: (b) The Capital Market:
  5. 5. Share market reports (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
  6. 6. Share market reports (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.
  7. 7. Share market reports • 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.
  8. 8. 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.
  9. 9. Share market reports • Stock market is a mechanism through which buyers and sellers come into close contact with each other.
  10. 10. Share market reports • 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.
  11. 11. Share market reports • 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.
  12. 12. • 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
  13. 13. 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.
  14. 14. Share market reports • 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.
  15. 15. Share market reports • So they could transfer their deal from one market to another market and could get maximum profit by paying nominal amount as margin.
  16. 16. • 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. Share market reports
  17. 17. • It also contains monitoring and surveillance mechanism.
  18. 18. Share market reports • 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.
  19. 19. Share market reports • 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.
  20. 20. 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.
  21. 21. Share market reports 4. 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.
  22. 22. 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.
  23. 23. 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
  24. 24. Share market reports 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.
  25. 25. Share market reports 13. 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.
  26. 26. Share market reports 15. 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.
  27. 27. 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).
  28. 28. 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)
  29. 29. 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.
  30. 30. Share market reports 21. 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.
  31. 31. 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).
  32. 32. Share market reports 25. 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
  33. 33. Share market reports 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.
  34. 34. • upward trend 1. 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:
  35. 35. 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)
  36. 36. 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
  37. 37. Share market reports 24. Havoc (devastation) 25. Rampant (getting worse quickly and uncontrolled) 26. Crucial (very important) 27. Peak
  38. 38. Example

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