DEFINATION & ADVANTAGES

DEFINATION & ADVANTAGES
Q. Define a Market Report and state its advantages.
ANSWER:
i) Definition:
Market Report is the periodical publication of the conditions or review of the business transacted in a
certain commodity or capital in a particular market. Such reports may be prepared and published daily,
weekly, fortnightly or monthly etc. in newspaper, magazine and commercial bulletins. It gives the
opening and closing rates of commodities (or capital) along-with the reasons for the rising of falling
trend of the market price.
ii) Advantages:
The advantages of a Market Report may be enumerated as follows:
1. It is an index of price.
2. It provides statistics for comparison.
3. It shows true nature and volume of business transacted.
4. It shapes public opinion.
5. It tends to stabilize prices.
6. It indicates future movement of prices.
7. It serves as media of advertisement for the Company(s).
8. It shows the effect of demand and supply on market.
9. It warns speculators.
10. It provides valuable commercial literature.