List of Terms relating to Indian Stock Exchange ↓
List of the of import terms relating to indian blogspot.com//search?q=what-is-stock-exchange-its-definitions">stock exchange transactions.
1. Group Influenza A virus subtype H5N1 Shares
These are the listed equity shares of large together with good established companies having wide investor base. These shares are actively traded together with for these shares the facility for carrying forrard a transaction from ane accounting menstruation to exactly about other is available. Naturally, these shares attract a lot of speculative multiples. These facilities are non available for grouping B shares. However, shares tin last moved from Group B to Group Influenza A virus subtype H5N1 together with vice versa depending on criteria for shifting. For representative the Mumbai Stock Exchange has set downward several criteria for shifting shares from Group B to Group A; such as, an equity base of operations of Rs. 10 crores, a marketplace capitalization of Rs. 25-30 crores, a world belongings of 35 to xl percent, a shareholding population of 15,000 to 20,000, practiced dividend paying status, etc.
2. Group B Shares
These are those listed shares which do non follow the criteria prescribed for Group Influenza A virus subtype H5N1 shares. Group B shares are ane time again divided into B1 together with B shares on BSE. B1 shares correspond good traded scrips amid B grouping together with they stimulate got weekly settlements.
3. Group C Shares
Under Group C, exclusively strange lots together with permitted securities are included. Influenza A virus subtype H5N1 number of shares that are less than the marketplace lot are called strange lots. Market lot refers to the minimum number of shares of a item safety that must last transacted on a stock exchange. Odd lots stimulate got village ane time inwards a fortnights or ane time on Saturdays. Permitted securities are those that are non listed on a stock central but are listed on other exchanges inwards India. So they are permitted to last traded on BSE. Odd lots cannot last easily transacted on the stock central together with so they are illiquid inwards nature.
4. Arbitration
Arbitration is a quasi-judicial procedure to resolve a dispute which is faster together with inexpensive. The stock central facilitates the procedure of arbitration betwixt the fellow member together with their clients. The disputes betwixt the parties are resolved through arbitration inwards accordance amongst the by-laws of the exchange. Arbitration is required inwards the matters such equally village of claims, differences together with disputes betwixt ane fellow member together with another, betwixt a fellow member together with his clients, sub-brokers or authorised clerks etc.
5. Arbitrage
Arbitrage is undertaken to brand a turn a profit out of differences inwards prices of a safety inwards 2 unlike markets. It is a highly skilled speculative activity. If the prices of a safety differ substantially inwards the 2 stock markets, the speculator purchases the safety inwards the marketplace where it is inexpensive together with sells it at a turn a profit inwards exactly about other marketplace where it is quoted high together with thus makes huge profit. The speculator has to deed rattling fast since the prices are highly sensitive together with they may larn equalised inside a brusk bridge of time.
The arbitrage may last carried on betwixt the 2 markets inside the province or inwards 2 unlike countries. The one-time is called 'domestic arbitrage' together with the latter 'foreign arbitrage'. Arbitrage ultimately helps inwards equalising the prices of securities at unlike places; hence, it is beneficial to market. The brokers who ship arbitrage activity are called arbitragers.
6. Auction
An auction is a machinery utilised yesteryear the central to fulfil its obligation to a counter political party fellow member when a fellow member fails to deliver practiced securities or brand the payment. The stock exchange, inwards such cases, arranges to purchase practiced securities through auction together with deliver them to the buying broker or arranges to realise the cash together with pay it to the selling broker.
7. At Best Order
It is an guild from an investor for the purchase or sale of securities wherein the investor does non specify a cost at which the purchase or sale of securities should last made yesteryear broker on his behalf. Such guild must last executed yesteryear the broker at best possible price. The customer may likewise create a fourth dimension frame inside which the guild has to last executed. e. g. "Buy 200 Reliance Industries at best".
8. Authorised Clerk
An authorised clerk is a representative appointed yesteryear a stock broker to assist him inwards the securities trading. Influenza A virus subtype H5N1 broker cannot stay nowadays all the fourth dimension on trading flooring of stock exchange, hence he requires assistants to ship out trading activities on his behalf. As per the rules of the stock exchange, each broker tin employ a specified number of authorised clerks to transact his business. They are likewise called 'member assistants'. At Bombay, Madras & Calcutta Stock exchanges the number of authorised clerks allowed yesteryear a broker are 5, iii together with 8 respectively. Generally, authorised clerks are given ability of attorney to deed on behalf of broker & hence they tin sign on behalf of brokers.
9. Bad Delivery Cell
A delivery of shares turns out to last bad if in that location is a companionship objection on draw of piece of work organisation human relationship of signature difference, or if shares are fake, forged or stolen etc. In such a representative the investor tin approach the bad delivery jail mobile telephone of stock central through his broker for correction or replacement amongst practiced delivery.
10. Bid together with Offer
Bid refers to the cost of a portion which a prospective buyer is ready to pay for item scrip. Offer is the cost at which a portion is offered for a sale on stock exchange.
11. Brokerage
Brokerage way the committee charged yesteryear a broker for purchase or sale of securities done through him. The maximum brokerage chargeable equally stipulated yesteryear SEBI is at nowadays 2.5 % of the merchandise value.
12. BOLT
Bombay Stock Exchange has introduced BOLT. That is, BSE - On - Line - Trading - System for listed securities. Trading is guild driven equally quote driver organisation is discontinued. For this role BSE classified the listed securities into five categories. Viz. A, B1, B2, F, G together with Z. Out of these A, B1 together with B2 groups correspond equity segment. Group F represents securities which stimulate got fixed income, 'G' grouping represents Government Securities whereas 'Z' represents those companies which failed to comply amongst listing norms or failed to redress investors' complaints or failed to comply amongst depository requirements. Trading of securities of listed companies of other exchanges is likewise permitted together with these securities are categorised inwards 'Permitted Securities.'
13. 'Badla' or Carry Forward Trading
Carry Forward or 'Badla' refers to the trading inwards which the village of a transaction is postponed to the side yesteryear side village menstruation on payment of exactly about charges yesteryear way of involvement known equally Badla Charges. Carryover or Badla is a facility given to the speculator yesteryear the other political party to ship forrard the transaction from ane village menstruation to another. The scrips inwards specified categories (i.e. Group A) lonely could last carried forward. Badla charges vary from menstruation to menstruation together with are fixed fortnightly.
14. Bulls
Bulls are those brokers of stock central who are rattling optimistic of the ascent inwards prices of securities. Hence, they become on buying shares inwards expectation of selling them at higher prices later. Thus, inwards a bull marketplace in that location volition last excess of purchase over sales. Bulls are likewise called 'Tejiwallas'.
15. Bears
Bears are those fellow member brokers of stock central who are e'er pessimistic inwards approach. They hold back a autumn inwards prices of securities. Hence, they become on selling securities. They are likewise called Mandiwallas. Influenza A virus subtype H5N1 Bearish marketplace refers to a marketplace where prices of shares are falling continuously where in that location are excess of sales over purchases.
16. Blank transfers
Blank transfers facilitate speculative activities through badla transactions. If a seller (or transferer) of safety exactly signs the transfer cast without specifying the mention of buyer (or transferee), it is called a blank transfer. Badla transactions involve temporary purchases together with sales of securities. If they stimulate got to last registered, it involves lot of inconveniences due to registration fees, postage stamp duty, etc. Hence, to avoid such inconveniences blank transfers are increasingly used to carryover the transaction.
17. Circuit breakers
Its a machinery yesteryear which Stock Exchanges temporarily suspend the trading inwards a safety when its prices are volatile together with tend to breach the cost band.
18. Clearing
Clearing is a procedure through which all transactions betwixt members of stock central are settled through multilateral netting.
19. Company objection
For transfer of a safety a transferer sends a scrip certificate along amongst the transfer deed to the company. In exactly about cases the companionship refuses the registration of transfer on draw of piece of work organisation human relationship of signature difference, or fake, forged or stolen shares. In such cases the companionship returns the documents sent along amongst a missive of the alphabet which is termed equally a 'company objection'.
20. Cornering
It refers to the procedure of belongings entire render of a item safety yesteryear an private or a grouping of individuals amongst a consider to dictating terms to the brusk sellers together with earning to a greater extent than profits.
21. Clearing Settlement
Under this method, the transactions are cleared together with settled through the clearing house. Usually those securities which are oft traded together with are usually inwards need are cleared through the clearing house.
22. Client brokers
These brokers do uncomplicated braking draw of piece of work organisation yesteryear acting equally intermediaries betwixt the buyers together with sellers together with they earn exclusively brokerage for their services rendered to the clients.
23. Cum-bonus
The shares are called cum-bonus when a purchaser is entitled to have the electrical flow bonus declared yesteryear company.
24. Cum-rights
The portion is described equally cum-rights when a purchaser is entitled to have the current-rights shares declared yesteryear the company.
25. Day order
A solar daytime order, equally the mention suggests, is an guild which is valid for the solar daytime on which it is entered. If the guild cannot last executed during the day, it gets cancelled automatically.
26. Discretionary order
It is an guild placed yesteryear a customer to purchase or sell shares at whatever cost the broker thinks reasonable. This is possible exclusively when the customer has consummate organized faith on the broker.
27. Ex-bonus
The portion is described equally ex-bonus when a purchaser is non entitled to have the electrical flow bonus, the right to which remains amongst the seller.
28. Ex-rights
The portion is described equally ex-rights when a purchaser is non entitled to have the electrical flow rights, the right of which remains amongst the seller.
29. Forward trading
Forward trading refers to trading where contracts traded today are settled at exactly about futurity appointment at prices decided today.
30. Good-bad delivery
A portion certificate together amongst its transfer cast which meets all the requirements of championship transfer from seller to buyer is called practiced delivery inwards the market.
Delivery of a portion certificate, together amongst a deed to transfer, which does non encounter requirements of championship transfer from seller to buyer is called a bad delivery inwards the market.
31. Hand Delivery Settlement
Under this method, the delivery of securities together with payment are affected inside the fourth dimension stipulated inwards the understanding or inside fourteen days from the appointment of contract whichever is earlier. Most of the transactions are conducted on the footing of manus delivery settlements.
32. Insider Trading
It way trading inwards a company's shares yesteryear a soul who is associated amongst that company. As a termination of his association he has a clandestine cost sensitive data most the companionship such equally expansion plans, fiscal results, takeover bid, bonus or right number etc. He tries to exploit that data together with maximise his turn a profit through trading inwards the scrip of that company. It is a criminal offense together with hence prohibited yesteryear stock exchanges.
33. Jumbo certificate
A jumbo portion certificate is a unmarried composite portion certificate issued yesteryear consolidating-a large number of marketplace lots.
34. Jobbers
A jobber is a professional person independent broker who deals inwards securities on his ain behalf. Like brokers he does non purchase or sell securities on behalf of a customer for a commission. Instead he purchases the securities inwards his ain mention together with sells them out when the prices of those securities increment together with thereby earn a profit. He is similar a stockist of safety of unlike companies. He buys securities equally a owner, keeps them for a rattling brusk menstruation together with sells them for turn a profit known equally 'jobbers turn'. He industrial plant for a turn a profit together with non for a commission.
35. Lame ducks
Lame ducks are comport brokers (expecting decline inwards prices) who ultimately sell the securities ultimately at a loss yesteryear making incorrect moves. They lose inwards marketplace due to the incorrect prediction that portion prices volition decline but inwards reality they increase. Generally, they contract to sell securities which they do non posses, therefore, they are caught inwards a incorrect foot.
36. Limit order
It is an guild for the purchase or sale of a scrip at a create cost specified yesteryear the client. e.g. "Sell 100 TISCO shares @ Rs. 280".
37. Market Lot
Market lot refers to the minimum number of shares of a item safety that must last transacted on the exchange. Market lot may last 10 shares, twenty shares, 50 shares or 100 shares. Multiples of the marketplace lot may likewise last transacted. In demat scrips the marketplace lot is 1 share.
38. No-delivery period
Whenever a mass closure or tape appointment is announced yesteryear a company, the Exchange sets a no-delivery menstruation for that security. During this period, trading is permitted inwards that security. However, these trades are settled exclusively after the no-delivery menstruation is over. This is done to ensure that investor's entitlement for corporate benefits is clearly determined.
39. Odd lot
A number of shares that are less than the marketplace lot are known equally strange lots. Under the scrip based delivery system, these shares are unremarkably traded at a discount to the prevailing cost for the marketable lot.
40. Order-driven trading
It is a trading initiated yesteryear purchase I sell orders, from investors / brokers.
41. Over-the Counter trading
Trading inwards those stocks which are non listed on a stock exchange.
42. Open order
It is an guild to purchase or sell a safety received from a customer without fixing whatever fourth dimension bound or cost bound on the execution of the order. It is similar to discretionary order.
43. Pay-in
Pay-in solar daytime is the designated solar daytime on which the securities or funds are delivered / paid inwards yesteryear the members to the clearing family of the Exchange.
44. Pay-out
Pay-out is the designated solar daytime on which securities together with funds are delivered I paid out to the members yesteryear the clearing family of the Exchange.
45. Price band
The daily / weekly cost limits inside which cost of a safety is allowed to ascent or fall.
46. Price rigging (or Rigging the market)
When a soul or persons acting inwards concert amongst each other collude to artificially increment or decrease the cost of a security, that procedure is called cost rigging or rigging the market. It is an undesirable activity since it prevents the gratis interplay of need together with supply. Stock exchanges together with SEBI endeavor to discourage such practice.
47. Quote-driven trading
Trading where brokers / marketplace makers give purchase I sell quote for a scrip simultaneously.
48. Record date
Record appointment is the appointment on which the beneficial ownership of an investor is entered into the register of members. Such a fellow member is entitled to larn all the corporate benefits.
49. Rematerialisation of shares
It is the procedure through which shares held inwards electronic cast inwards depository are converted into physical form.
50. Screen based trading
When buying / selling of securities is done using computers together with matching of trades is done yesteryear a stock central computer.
51. Settlement
It refers to the scrip-wise netting of trades yesteryear a broker after the trading menstruation is over.
52. Settlement guarantee
Settlement guarantee is the guarantee provided yesteryear the clearing company for village of all trades fifty-fifty if a political party defaults to deliver securities or pay cash.
53. Splitting /Consolidation
The procedure of splitting shares that stimulate got a high confront value into shares of a lower confront value is known equally splitting. The contrary procedure of combining shares that stimulate got a depression confront value into ane portion of higher value is known equally consolidation.
54. Spot trading
Trading yesteryear delivery of shares together with payment for the same on the appointment of purchase or on the side yesteryear side day.
55. Stop transfer
It is an pedagogy given yesteryear a registered holder of shares to the companionship to halt the transfer of shares inwards his mention equally a termination of theft, misplacement, loss of portion certificates.
56. Stags
Stags are those members inwards portion marketplace who neither purchase nor sell securities inwards stock exchange. They exactly apply for subscription to novel issues expecting to sell them at a higher cost after when the issues are quoted on stock exchange. Generally, stags purchase novel issues together with sell them on allocation or fifty-fifty before allocation for a profit. Since they deed fast they are called stags - a fast runner.
57. Spot delivery settlement
These transactions are to last settled yesteryear delivery together with payment on the appointment of contract or on the side yesteryear side day.
58. Special delivery
Delivery together with payment made anytime exceeding fourteen days, but non exceeding 2 months, next the appointment of the contract equally may last stipulated when entering into the deal together with permitted yesteryear the Governing Board or the President.
59. Stop Loss Order
It is an guild yesteryear a customer to sell equally presently equally the prices autumn upto a item grade or to purchase when the cost rises upward to a specified level. This is mainly to protect the clients against a heavy autumn or ascent inwards prices so that they may non endure to a greater extent than than the pre-specified amount.
60. Trade guarantee
Trade guarantee is the guarantee provided yesteryear the clearing company for all trades that are executed on the exchange. In contrast, at the village guarantee, guarantees the village of merchandise after multilateral netting.
61. Transfer deed
A transfer deed is a cast that is used for effecting transfer of shares or debentures together with is valid for a specified period. It should last sent, to the companionship along amongst the portion certificate for registering the transfer. The transfer deed must last duly stamped together with signed yesteryear or on behalf of the transferor together with transferee together with consummate inwards all respects.
62. Wash Sales
Wash sales is a sort of fictitious transaction through which a speculator is able to reap huge turn a profit yesteryear creating a misleading flick inwards the market. He makes fictitious sale of a safety together with so makes a purchase of the same safety at higher cost through exactly about other broker. Thus, he creates a misleading sentiment inwards the marketplace equally if the cost of a safety inwards interrogation is rising. As a termination of such mistaken opinion, when the cost of the safety genuinely rises the speculator sells it to earn a practiced profit. Wash sale is a sort of cheating hence stock exchanges impose severe penalization on such sales.
63. Wolves
These are the brokers who are fast together with smart speculators. They speedily perceive changes inwards the trends inwards the marketplace together with merchandise fast to brand profit. They are non mostly caught inwards the incorrect foot.
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