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    Important Terms Related To Stock Exchange

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    rishikeshdivekar0

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    Important Terms Related To Stock Exchange

    Uploaded by

    rishikeshdivekar0
    6 views11 pages

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    Important Terms Related to Stock Exchange

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    6 views11 pages

    Important Terms Related To Stock Exchange

    Uploaded by

    rishikeshdivekar0

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Important Terms

    Related to Stock
    Exchange
    Meaning of Stock
    exchange
    Stock exchange is a specific place where various types of
    securities are purchased and sold. The term securities include
    equity shares, preference shares, debentures, government
    securities and bonds, etc. including units of Mutual Funds. Stock
    markets act as intermediary between investors and borrowers.
    Definition of Stock
    Exchange
    According to the Securities Contracts (Regulation) Act 1956,
    the term stock exchange is defined as, “An association,
    organization or body of individuals, whether incorporated or
    not, established for the purpose of assisting, regulating and
    controlling of business in buying, selling and dealing in
    securities.
    Broker
    He is a member of a stock exchange who is licensed by stock
    exchange to buy or sell shares on his client’s behalf. He is an
    agent between the investors and Jobber. His income is in the
    form of commission or brokerage.
    Jobber
    A Jobber is a dealer in stock exchange who carries on
    trading of securities in his own name. He buys securities as
    an owner and sells them at a higher price. The profit he
    makes is his income. He is a professional speculator in the
    stock exchange. He is not permitted to deal with investors
    directly.
    Bull (Tejiwala)
    A Bull is a speculator who expects the price of a share to
    rise in the future and buys with the hope of selling them
    at the higher prices to earn profit. His views are optimistic.
    Bulls actions leads to higher prices for securities as there
    is excess of purchase over sales.
    Bear(Mandiwala)
    In the stock market, a "bear" refers to an investor or market sentiment
    that is pessimistic, expecting prices to fall. A "bear market" is a period
    during which stock prices decline over time, usually by 20% or more
    from recent highs. This can be triggered by economic downturns, low
    investor confidence, or negative market trends. Bears sell stocks,
    anticipating they can buy them back at lower prices, profiting from the
    market's downward movement.
    Stag
    In the stock market, a "stag" refers to an investor who buys shares in a
    new company during an initial public offering (IPO) with the intention of
    selling them quickly to make a profit. Stags are not focused on long-
    term investments but rather seek to take advantage of short-term price
    increases that often occur when a stock is newly listed. If the stock
    price rises after the IPO, the stag sells the shares for a profit.
    Lame Duck
    Lame-duck is a term used to point to a trade who has a history of
    defaulting on his or her debt or has gone bankrupt as they were not
    able to cope with the losses resulting from trading. The history of this
    term dates way back to the mid of 18th century when the London Stock
    Exchange was being developed.
    Wolves
    In the stock market, "wolves" refer to aggressive investors or traders
    who use high-risk strategies, often aiming for quick and significant
    profits. Wolves are typically known for their ruthlessness and
    willingness to exploit market fluctuations, insider information, or risky
    ventures to gain an advantage. The term became popularized by the
    movie *The Wolf of Wall Street*, which depicted a high-risk, high-reward
    approach to stock trading, often involving questionable or unethical
    practices.

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