STOCK MARKET TERMINOLOGIES

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Published: August 3, 2009

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    This Column is aimed at helping the beginners who wish to venture in the share market. I guess, by now most of us would have tried their luck by venturing into the secondary market, however for few it wouldn’t have been a favourable one and might have incurred loss too. If you are still looking to dive into this world of Stocks then you need to do some home work. Yes in order to know more about the Stock Market, you need to understand the basic terminologies used which would come in handy when you are looking for some help and what if you are misguided????

    So I am gonna help you in understanding the basic terms you are required to know. Let’s get started!!

    Group A, B1 & B2 Shares :

    The Shares listed under BSE has been classified as A, B1 & B2 each having its own attributes. So choose the appropiate & suitable group for better results.

    Account:

    The tenure in which all the transacions takes place without immediate cash Settlement. These are noted down and settled on the Acoount Day.

    Account Day:

    This is known as the settlement day. The day when all the transactions/executed orders between members are settled. This will be the final day of the accounting period.

    Asked Price:

    This is the price at which the  seller wishes to sell a scrip, which is usually at a lesser price.

    Away From the Market:

    When an Investor intends to buy at a price lesser than the market price and also when an when he intends to sell at a price higher than the market price, then it said to be “Away from the market”. However, such order will be put on hold by the broker for a period, until which he is not able to find one then he kills it.

    At The Open:

    To buy or a sell an order at the opening price and opening of the trade.

    Averaging In/Averaging Out:

    Scrips bought and Sold at different prices either to liquidate or put on hold for a longer period.

    Back UP:

    Now this has something to do with the market behavior. Say a sudden fall in the rising market and a sudden rise when the market conditions were bad.

    Ballot:

    Whenever a new issue has been oversubscribed, a random allotment of shares is rolled out.

    Basis Price:

    This is used for calculating an investors capital gain whenever a scrip is sold.

    To Be Cont…

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