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 as well as good established companies having wide investor base. These shares are actively traded as well as for these shares the facility for carrying forrard a transaction from i accounting flow to to a greater extent than or less other is available. Naturally, these shares attract a lot of speculative multiples. These facilities are non available for grouping B shares. However, shares tin hold out moved from Group B to Group Influenza A virus subtype H5N1 as well as vice versa depending on criteria for shifting. For illustration 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 position capitalization of Rs. 25-30 crores, a populace belongings of 35 to forty percent, a shareholding population of 15,000 to 20,000, skillful 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 in i trial to a greater extent than divided into B1 as well as B shares on BSE. B1 shares correspond good traded scrips alongside B grouping as well as they take away hold weekly settlements.
3. Group C Shares
Under Group C, solely strange lots as well as permitted securities are included. Influenza A virus subtype H5N1 number of shares that are less than the marketplace position lot are called strange lots. Market lot refers to the minimum number of shares of a detail safety that must hold out transacted on a stock exchange. Odd lots take away hold short town in i trial inward a fortnights or in i trial on Saturdays. Permitted securities are those that are non listed on a stock telephone substitution but are listed on other exchanges inward India. So they are permitted to hold out traded on BSE. Odd lots cannot hold out easily transacted on the stock telephone substitution as well as so they are illiquid inward nature.
4. Arbitration
Arbitration is a quasi-judicial procedure to resolve a dispute which is faster as well as inexpensive. The stock telephone substitution facilitates the procedure of arbitration betwixt the fellow member as well as their clients. The disputes betwixt the parties are resolved through arbitration inward accordance with the by-laws of the exchange. Arbitration is required inward the matters such equally short town of claims, differences as well as disputes betwixt i fellow member as well as another, betwixt a fellow member as well as his clients, sub-brokers or authorised clerks etc.
5. Arbitrage
Arbitrage is undertaken to brand a turn a profit out of differences inward prices of a safety inward ii dissimilar markets. It is a highly skilled speculative activity. If the prices of a safety differ substantially inward the ii stock markets, the speculator purchases the safety inward the marketplace position where it is inexpensive as well as sells it at a turn a profit inward to a greater extent than or less other marketplace position where it is quoted high as well as thus makes huge profit. The speculator has to human activeness real fast since the prices are highly sensitive as well as they may larn equalised inside a brusque bridge of time.
The arbitrage may hold out carried on betwixt the ii markets inside the Earth or inward ii dissimilar countries. The quondam is called 'domestic arbitrage' as well as the latter 'foreign arbitrage'. Arbitrage ultimately helps inward equalising the prices of securities at dissimilar places; hence, it is beneficial to market. The brokers who send arbitrage activity are called arbitragers.
6. Auction
An auction is a machinery utilised yesteryear the telephone substitution to fulfil its obligation to a counter political party fellow member when a fellow member fails to deliver skillful securities or brand the payment. The stock exchange, inward such cases, arranges to purchase skillful securities through auction as well as deliver them to the buying broker or arranges to realise the cash as well as pay it to the selling broker.
7. At Best Order
It is an society 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 hold out made yesteryear broker on his behalf. Such society must hold out executed yesteryear the broker at best possible price. The customer may likewise develop a fourth dimension frame inside which the society has to hold out 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 inward 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 send 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, three as well as 8 respectively. Generally, authorised clerks are given ability of attorney to human activeness on behalf of broker & hence they tin sign on behalf of brokers.
9. Bad Delivery Cell
A delivery of shares turns out to hold out bad if at that topographic point is a society objection on trouble organisation human relationship of signature difference, or if shares are fake, forged or stolen etc. In such a illustration the investor tin approach the bad delivery prison theater mobile telephone of stock telephone substitution through his broker for correction or replacement with skillful delivery.
10. Bid as well as Offer
Bid refers to the cost of a part which a prospective buyer is ready to pay for detail scrip. Offer is the cost at which a part is offered for a sale on stock exchange.
11. Brokerage
Brokerage agency 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 society driven equally quote driver organisation is discontinued. For this role BSE classified the listed securities into five categories. Viz. A, B1, B2, F, G as well as Z. Out of these A, B1 as well as B2 groups correspond equity segment. Group F represents securities which take away hold fixed income, 'G' grouping represents Government Securities whereas 'Z' represents those companies which failed to comply with listing norms or failed to redress investors' complaints or failed to comply with depository requirements. Trading of securities of listed companies of other exchanges is likewise permitted as well as these securities are categorised inward 'Permitted Securities.'
13. 'Badla' or Carry Forward Trading
Carry Forward or 'Badla' refers to the trading inward which the short town of a transaction is postponed to the adjacent short town flow on payment of to a greater extent than or less 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 send forrard the transaction from i short town flow to another. The scrips inward specified categories (i.e. Group A) lone could hold out carried forward. Badla charges vary from flow to flow as well as are fixed fortnightly.
14. Bulls
Bulls are those brokers of stock telephone substitution who are real optimistic of the ascent inward prices of securities. Hence, they become on buying shares inward expectation of selling them at higher prices later. Thus, inward a bull marketplace position at that topographic point volition hold out excess of purchase over sales. Bulls are likewise called 'Tejiwallas'.
15. Bears
Bears are those fellow member brokers of stock telephone substitution who are ever pessimistic inward approach. They aspect a autumn inward prices of securities. Hence, they become on selling securities. They are likewise called Mandiwallas. Influenza A virus subtype H5N1 Bearish marketplace position refers to a marketplace position where prices of shares are falling continuously where at that topographic point are excess of sales over purchases.
16. Blank transfers
Blank transfers facilitate speculative activities through badla transactions. If a seller (or transferer) of safety but signs the transfer shape without specifying the advert of buyer (or transferee), it is called a blank transfer. Badla transactions involve temporary purchases as well as sales of securities. If they take away hold to hold out registered, it involves lot of inconveniences due to registration fees, postage 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 inward a safety when its prices are volatile as well as tend to breach the cost band.
18. Clearing
Clearing is a procedure through which all transactions betwixt members of stock telephone substitution are settled through multilateral netting.
19. Company objection
For transfer of a safety a transferer sends a scrip certificate along with the transfer deed to the company. In to a greater extent than or less cases the society refuses the registration of transfer on trouble organisation human relationship of signature difference, or fake, forged or stolen shares. In such cases the society returns the documents sent along with a alphabetic quality which is termed equally a 'company objection'.
20. Cornering
It refers to the procedure of belongings entire render of a detail safety yesteryear an private or a grouping of individuals with a reckon to dictating terms to the brusque sellers as well as earning to a greater extent than profits.
21. Clearing Settlement
Under this method, the transactions are cleared as well as settled through the clearing house. Usually those securities which are oft traded as well as are usually inward need are cleared through the clearing house.
22. Client brokers
These brokers do uncomplicated braking trouble organisation yesteryear acting equally intermediaries betwixt the buyers as well as sellers as well as they earn solely 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 part 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 advert suggests, is an society which is valid for the solar daytime on which it is entered. If the society cannot hold out executed during the day, it gets cancelled automatically.
26. Discretionary order
It is an society placed yesteryear a customer to purchase or sell shares at whatever cost the broker thinks reasonable. This is possible solely when the customer has consummate organized faith on the broker.
27. Ex-bonus
The part is described equally ex-bonus when a purchaser is non entitled to have the electrical flow bonus, the right to which remains with the seller.
28. Ex-rights
The part is described equally ex-rights when a purchaser is non entitled to have the electrical flow rights, the right of which remains with the seller.
29. Forward trading
Forward trading refers to trading where contracts traded today are settled at to a greater extent than or less futurity appointment at prices decided today.
30. Good-bad delivery
A part certificate together with its transfer shape which meets all the requirements of championship transfer from seller to buyer is called skillful delivery inward the market.
Delivery of a part certificate, together with a deed to transfer, which does non come across requirements of championship transfer from seller to buyer is called a bad delivery inward the market.
31. Hand Delivery Settlement
Under this method, the delivery of securities as well as payment are affected inside the fourth dimension stipulated inward the understanding or inside xiv days from the appointment of contract whichever is earlier. Most of the transactions are conducted on the set down of paw delivery settlements.
32. Insider Trading
It agency trading inward a company's shares yesteryear a somebody who is associated with that company. As a outcome of his association he has a cloak-and-dagger cost sensitive data near the society such equally expansion plans, fiscal results, takeover bid, bonus or right number etc. He tries to exploit that data as well as maximise his turn a profit through trading inward the scrip of that company. It is a criminal offense as well as hence prohibited yesteryear stock exchanges.
33. Jumbo certificate
A jumbo part certificate is a unmarried composite part certificate issued yesteryear consolidating-a large number of marketplace position lots.
34. Jobbers
A jobber is a professional person independent broker who deals inward 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 inward his ain advert as well as sells them out when the prices of those securities increment as well as thereby earn a profit. He is similar a stockist of safety of dissimilar companies. He buys securities equally a owner, keeps them for a real brusque flow as well as sells them for turn a profit known equally 'jobbers turn'. He plant for a turn a profit as well as non for a commission.
35. Lame ducks
Lame ducks are deport brokers (expecting decline inward prices) who ultimately sell the securities ultimately at a loss yesteryear making incorrect moves. They lose inward marketplace position due to the incorrect prediction that part prices volition decline but inward reality they increase. Generally, they contract to sell securities which they do non posses, therefore, they are caught inward a incorrect foot.
36. Limit order
It is an society for the purchase or sale of a scrip at a develop 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 detail safety that must hold out transacted on the exchange. Market lot may hold out 10 shares, xx shares, 50 shares or 100 shares. Multiples of the marketplace position lot may likewise hold out transacted. In demat scrips the marketplace position 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 flow for that security. During this period, trading is permitted inward that security. However, these trades are settled solely after the no-delivery flow 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 position lot are known equally strange lots. Under the scrip based delivery system, these shares are usually 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 inward those stocks which are non listed on a stock exchange.
42. Open order
It is an society 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 inward yesteryear the members to the clearing household of the Exchange.
44. Pay-out
Pay-out is the designated solar daytime on which securities as well as funds are delivered I paid out to the members yesteryear the clearing household 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 somebody or persons acting inward concert with 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 complimentary interplay of need as well as supply. Stock exchanges as well as SEBI try to discourage such practice.
47. Quote-driven trading
Trading where brokers / marketplace position 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 inward electronic shape inward depository are converted into physical form.
50. Screen based trading
When buying / selling of securities is done using computers as well as matching of trades is done yesteryear a stock telephone substitution computer.
51. Settlement
It refers to the scrip-wise netting of trades yesteryear a broker after the trading flow is over.
52. Settlement guarantee
Settlement guarantee is the guarantee provided yesteryear the clearing firm for short town 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 take away hold a high confront value into shares of a lower confront value is known equally splitting. The contrary procedure of combining shares that take away hold a depression confront value into i part of higher value is known equally consolidation.
54. Spot trading
Trading yesteryear delivery of shares as well as payment for the same on the appointment of purchase or on the adjacent day.
55. Stop transfer
It is an teaching given yesteryear a registered holder of shares to the society to halt the transfer of shares inward his advert equally a outcome of theft, misplacement, loss of part certificates.
56. Stags
Stags are those members inward part marketplace position who neither purchase nor sell securities inward stock exchange. They but apply for subscription to novel issues expecting to sell them at a higher cost afterwards when the issues are quoted on stock exchange. Generally, stags purchase novel issues as well as sell them on allocation or fifty-fifty before allocation for a profit. Since they human activeness fast they are called stags - a fast runner.
57. Spot delivery settlement
These transactions are to hold out settled yesteryear delivery as well as payment on the appointment of contract or on the adjacent day.
58. Special delivery
Delivery as well as payment made anytime exceeding xiv days, but non exceeding 2 months, next the appointment of the contract equally may hold out stipulated when entering into the create out as well as permitted yesteryear the Governing Board or the President.
59. Stop Loss Order
It is an society yesteryear a customer to sell equally before long equally the prices autumn upto a detail degree or to purchase when the cost rises upwardly to a specified level. This is mainly to protect the clients against a heavy autumn or ascent inward 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 firm for all trades that are executed on the exchange. In contrast, at the short town guarantee, guarantees the short town of merchandise after multilateral netting.
61. Transfer deed
A transfer deed is a shape that is used for effecting transfer of shares or debentures as well as is valid for a specified period. It should hold out sent, to the society along with the part certificate for registering the transfer. The transfer deed must hold out duly stamped as well as signed yesteryear or on behalf of the transferor as well as transferee as well as consummate inward all respects.
62. Wash Sales
Wash sales is a form of fictitious transaction through which a speculator is able to reap huge turn a profit yesteryear creating a misleading motion-picture demonstrate inward the market. He makes fictitious sale of a safety as well as so makes a purchase of the same safety at higher cost through to a greater extent than or less other broker. Thus, he creates a misleading persuasion inward the marketplace position equally if the cost of a safety inward enquiry is rising. As a outcome of such mistaken opinion, when the cost of the safety genuinely rises the speculator sells it to earn a skillful profit. Wash sale is a form of cheating hence stock exchanges impose severe penalisation on such sales.
63. Wolves
These are the brokers who are fast as well as smart speculators. They speedily perceive changes inward the trends inward the marketplace position as well as merchandise fast to brand profit. They are non to a greater extent than often than non caught inward the incorrect foot.
