Stock Exchange Term Ppt

8/6/2019 Stock Exchange Term Ppt

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GROUP MEMBERSGROUP MEMBERS1. MAHEK CHHEDA(07)

2. KAUSHAL DOSHI(11)

3. DHRUVESH GUDHKA(15)4. RUSHABH SHETH(46)

5. PREM SONI(52)


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BULL & BULL MARKETBULL & BULL MARKETy Speculator in the stock market in which stock price are

rising

y Buys the security to sell it in future when the prices goup.

y Tejiwala(Rise in the price)


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BEARS & BEARS MARKETBEARS & BEARS MARKETy Speculator in the stock market in which stock prices

are falling

y Buys the securities at a lower price and sells it at higherprice to get a higher return or profit

y Mandiwala (fall in the price)


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ARBITRAGE & ASK FOR OFFERARBITRAGE & ASK FOR OFFERyArbitrage: The simultaneous purchase of a security on

one stock market and the sale of the same security on

another stock market at prices which yield a profit.yAsk or Offer: The lowest price at which someone is

willing to sell the security. When combined with thebid price information, it forms the basis of a stock

quote.


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BLOCK TRADES & BOOKBLOCK TRADES & BOOKy Block Trades: Trades greater than or equal to 10,000

shares in size and greater than or equal to $100,000 in

value. They are also known as block deals which takeplace only in the first half an hour after opening ofstock market.

y Book:An electronic record of all pending buy and sell

orders for a particular stock.


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BROKER OR BROKERAGE FIRMBROKER OR BROKERAGE FIRMy Broker orBrokerage Firm:A securities firm or a

registered investment advisor affiliated with a firm.

Brokers are the link between investors and the stockmarket.

y E.g.: Share khan, Motila Oswal, Angel, etc.


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CLEARING CORPORATIONCLEARING CORPORATIONy Clears and settles all transaction.

y Provides financial guarantee for all transaction

executedy Provides risk management function


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CAPITAL GAIN OR LOSSy Capital Gainor Loss: Profit or loss resulting from the

sale of certain assets classified under the federal

income tax legislation as capital assets.y This includes stocks and other investments such as

investment property.


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COMMODITY MARKETCOMMODITY MARKETy Products used for commerce that are traded on a

separate, authorized commodities exchange.

yCommodities include agricultural products andnatural resources such as timber, oil and metals.

y Commodities are the basis for futures contracts tradedon these exchanges.

y Eg: MCX, NCDEX.


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OVER THE COUNTER (OTC)OVER THE COUNTER (OTC)

MARKETMARKETy The market maintained by securities dealers for issues

not listed on a stock exchange.

yAlmost all bonds and debentures, as well as somestocks, are traded over-the-counter in India.

yAn OTC market is also known as an unlisted market.


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PORTFOLIO & SECURITIESPORTFOLIO & SECURITIESy Portfolio: Holdings of securities by an individual or

institution. A portfolio may include various types of

securities representing different companies andindustry sectors.

y ecurities: Transferable certificates of ownership ofinvestment products such as notes, bonds, stocks,

futures contracts and options.


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P/EP/E-- RATIO & PENNY STOCKRATIO & PENNY STOCKy Price-Earnings (P/E) Ratio:A common stock's last

closing market price per share divided by the latest

reported 12-month earnings per share. This ratioshows you how many times the actual or anticipatedannual earnings a stock is trading at.

y PennyStock: Low-priced speculative issues of stock

selling at less than Re1.00 a share.


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FUTURES & OPTIONS (FUTURES & OPTIONS (f&Of&O))y Option: The right, but not the obligation, to buy or

sell certain securities at a specified price within a

specified time. A put option gives the holder the rightto sell the security, and a call option gives the holderthe right to buy the security.

y OptionType:A call or put contract.

y

Futures: Contracts to buy or sell securities at a futuredate.


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LISTED, UNLISTED & DELISTy Listed Stock: Shares/ stock of an issuer company that

are traded on a stock exchange.

yUnlisted:A security not listed on a stock exchange,but traded on the over-the-counter market.

y Delist: the removal of a security's listing on a stockexchange. This is done when the security no longer

exists, the company is bankrupt, the publicdistribution of the security has dropped to anunacceptably low level, or the company has failed tocomply with the terms of its listing agreement.


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SHORT SELLING & STOP LOSSy Short Selling: The selling of a security that the seller

does not own (naked or uncovered short) or hasborrowed (covered short). Short selling is a tradingstrategy. Short sellers assume the risk that they will beable to buy the stock at a lower price, cover theoutstanding short, and realize a profit from thedifference.

y

Stop Loss:Its a specific price at which the shares holdby the investor will automatically sell off in themarket. This is used to control the losses of theinvestor.


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LOWER & UPPER CIRCUITLOWER & UPPER CIRCUITy LowerCircuit: Its the lower limit of any stock price.

After falling to that limit trading in that stock stops for

that day.y UpperCircuit:It is the higher limit of a stock Price.

After reaching that limit trading in those shares stopsfor that day.


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HEDGE, INDEX & DEMATy Hedge:A strategy used to limit investment loss by

making a transaction that offsets an existing position.

yIndex:A statistical measure of the state of the stockmarket, based on the performance of stocks. E.g.:Sensex, Nifty50, etc.

y Dematerialization:It is a process by which an

investor gets his physical shares converted intoelectronic shares.

Stock Exchange Term Ppt

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