MARKET REPORT TERMINOLOGY/PHRASES

MARKET REPORT TERMINOLOGY/PHRASES

Q. Distinguish between the following terms/phrases:
1. Bonus issues and Right Issues.
2. Bull Campaign and Bear Raid.
3. Cumulative Dividend and Ex-Dividend.
4. Registered Security and Gilt Edged Security.
5. Spot Market and Future Market.
ANSWER:
4. BONUS ISSUES AND RIGHT ISSUES:
Bonus issues: Shares which are issued as bonus share-holders are known as Bonus Issues.
Right issues: Shares which are given as right to profit are known as Right Issues.
5. BULL CAMPAIGN AND BEAR RAID:
Bull Campaign: A Bull is optimistic in nature. He makes bargain in the hope of rise in price. When he
goes wrong in his forecast, he tries to create a rumour to raise the price level. This is known as bull
campaign.
Bear Raid: A Bear is pessimistic in nature. He makes bargain in the huge of fall in price. When he
goes wrong in his forecast, he tries to create a rumour to make the price fall. This is known as bear
raid.
6. CUMULATIVE DIVIDEND AND EX-DIVIDEND:
Cumulative Dividend: It refers to a quotation of security/share on the stock exchange whose price
includes dividend and interest accrued on it.
Ex-Dividend: It indicates that the right to receive dividend and interest accrued on it remain with the
seller even if the security/stock is in the hands of the buyers.
7. REGISTERED SECURITY AND GILT EDGED SECURITY:
Registered Security: it is a security which gives titles ownership to its holder who can transfer it to
someone else on a deed but the ownership will remain with the transferor.
Gilt Edges Security: it is Government security or first class security which gives the investor greatest
possible security.
8. SPOT MARKET AND FUTURE MARKET:
Spot Market: An organized market where goods are bought and sold on the spot and delivery is made
immediately is known as spot market.
Future Market: An organized market where goods are bought and sold for some future dare at a
settled price is known as future market.