USEFULNESS OF A DAILY REPORT OF STOCK EXCHANGE TO PROSPECTIVE INVESTORS

USEFULNESS OF A DAILY REPORT OF STOCK EXCHANGE TO PROSPECTIVE
INVESTORS
Q. Briefly explain the usefulness of a daily report of stock exchange to prospective
investors.
ANSWER:
i) Definition:
A Market Report may be defined as a periodical publication of the conditions or review of the
conditions of business transacted in a commodity or capital market. Such reports may be prepared and
published in newspaper and commercial bulletins daily, weekly, fortnightly or monthly.
Stock Exchange is an organized market and is a part of Capital Market. Stock Exchange may have an
international dimension. Indies the country, we find almost every day Stock Exchange Reports
published in all important newspaper. It provides an index of business conditions in the country in
terms of values and volumes of shares transacted in an exchange, e.g., Karachi Stock Exchange.
Usefulness:
The usefulness of a daily Stock Exchange Report can be viewed from various angles, e.g., investors,
businessmen, government, general public, etc. for prospective investors the usefulness may be
enumerated as follows:
1. It gives details of prices of shares of different companies quoted on Stock Exchange.
2. It indicates paid up value, yesterday’s rates and the loss or gain, if any, over the previous day’s
closing.
3. It provides indications about the biggest gains, heaviest declines, largest turnover and day’s changes.
4. It shows the likely trend in future, at least the near ones.
5. It gives information for prospective investors about the opportunity of investment in various types of
shares.
6. It provides the threats to new investors and thereby helps the prospective investor in blind rush to
rush money for bigger gain.
7. It wants to move continuously.