BUSINESS COMMUNICATION: IMPORTANT TECHNICAL TERMS AND PHRASES

• Arrival:

During the period of business i.e. a day or a week, the fresh stock brought to the market called arrival. It refers to only fresh addition to the total supply of commodity in the market.

• Bad book:

When a jobber finds the prices of his previously bought securities have gone down, it is known as bad book.

• Bare:

When market is short of a particular security.

• Bear:

Any speculator who sells a future in the hope that he will purchase at lower price and sell at a higher price.

• Bear raid:

A bear sells a future in the hope that price will fall and he will make purchases at a lower prices to gain. Since his gain depends upon the fall in price, he tries to bring down the price of that commodity. In this endeavor, he starts spreading rumors and news in the market. Such a campaign by the bear is known as bear raid.

• Bear sentiments/bearish sentiments:

When there is a feeling among speculators that the prices will fall the feeling is known as bearish sentiments.

• Bearish hells:

Suspension of market due to abnormal fall in price of a commodity. When the prices of stock go as below as the limit fixed by the market, the transaction of such a share is stopped to stop further fall. Such a stoppage is known as bearish hella.

• Blue chips:

Blue chips are the shares of a company having greater earning power, and a better record of dividend payment.

• Boom:

Heavy volume of business and rise in market value of a security. It refers to prosperity, increase in prices and good volume of business.

• Budlah:

Postponement of transaction on the next settlement day.

• Bull:

A bull is a speculator who buys forward without the intention of taking delivery and making payment in the expectation that the prices will rise in future. Thus he hopes to gain by selling it before the payment day.

• Bull Liquidation/ Bull unloading:

A bull is a person who expects a rise in price of a commodity and he purchases in order to make a profit. When settlement date arrives he is committed to settle the transaction no matter what is the position of the prices.

• Bull sentiments:

When a bull has a feeling that the prices of certain commodities will move up, it is known as bullish sentiments.

• Bullion:

Precious metal, gold, or silver in mass or bars but not as coins.

• Bullish Hella:

When the price of a stock goes too high i.e. it goes beyond the maximum limit fixes by the market, the transaction of such shares are suspended for the time being. Such a stoppage is known as bullish hella.

• Call rate:

It is the rate which is charged by the commercial banks over call loans. Call loans are those loans which are issued for a very short period of time and are repayable on a short notice or at call. The period generally ranges from some hours to weeks.

• Depression:

The condition of the market indicating falling prices and low volume of the business touching the bottom.

• Dumping:

To sell the goods at the lowest possible price in a foreign market.

• Forward business futures:

It refers to the contracts for future delivery. But in actual practice the future contracts are not settled by making/taking delivery but by the payment of the difference at the time of delivery.

• Forward buying:

Making purchases for which delivery will be made at the stated future date.

• Free market:

When a dealer can either buy or sell larger or small parcels of securities without difficulties.

• Glut:

It refers to oversupply of a commodity in a certain market. Due to glut conditions prices come down.

• Hella:

It is temporary suspension of market dealing due to abnormal rise or fall in prices. There may be bullish hella or bearish hella showing either situation.

• Jobber:

A jobber does not act as an agent but as a principal and deals in his own name. He does not possess or take delivery of what he sells or purchases from other parties, since his operations are of speculative nature. His profit is the margin between the buying and selling prices. A jobber is a member of the exchange.

• Normal or face value:

It is the amount stated on the face of the securities. However, in the case of shares of joint stock companies, the shares certificate mentions both the nominal value of the share and the amount actually paid thereon by a shareholder.

• Off take:

It refers to the total purchases of certain commodity in the market during a particular period.

• Option:

An option is a right to buy or sell certain good within a specified period of time at a certain price.

• Poor takes:

A small amount of purchase made in market.

• Ready business/actual:

When the goods are actually delivered after the contract has been made between the parties.

• Rigging:

An organization of bulls formed with a view to control the market by artificial means and get prices in their favor.

• Scrip:

This is the common term employed in the stock exchange for any kind of security. Such as government paper, debenture and shares.

• Setback:

It referred to fall in price after the period of healthy business.

• Slump:

Sudden fall in the market value of a security is termed as slump or a period of low business activity.

• Spade:

When the price rises or falls by an insignificant margin, it is known as spade.

• Speculation:

This term applies to future business and not ready business. If the goods are bought or sold for future delivery with the object of making settlement by the payment or receipt of the difference, it is known as speculation.

• Square deal:

The sale by bulls and the purchases by the bears to settle their respective accounts are known as square deal.

• Stag:

A person, who applies for shares in a new issue in order to get a gain on it, is known as stag.

• Street price:

A stock exchange is locked at a fixed time under the rules. But buying and selling of securities is often carried on even after the exchange is closed thus the prices quoted after the working hours is called street price.

• Underwriter:

When a broker undertakes the responsibility of selling the shares in the market on behalf of the issuing body, technically he is known as underwriter.