Virtual Stock Market

Glossary of Stock Exchange

BOLT - BSE-On-Line-Trading

Bull - A bull is a operator expecting a rise in price so that he can later sell at a higher price.

Bull Market - A rising market with abundance of buyers and few sellers.

Bear - An individual who expects price to go down.

Bear Markets - A weak or falling market characterised by absence of buyers.

Bargain - Transaction between two members of the exchange. The terms "dealings" and "contracts" also have identical meanings.

Bid - A bid is the demand for a security that can be entered by the syndicate/sub-syndicate members in the system. The two main components of a bid are the price and the quantity.

Bidder - The person who has placed a bid in the Book Building process.

Book Closure - Dates between which a company keeps its register of members closed for updating prior to payment of dividends or issue of new shares or debentures.

Bonds - Long term debt instruments.

Cash Settlement - Payment for transactions on the due date as distinct from carry forward (Badla) from one settlement period to the next.

Crisis - Reckless heavy short-sales leading to unduly depressed prices. In such a situation, the Governing Board may prohibit short sales, fix minimum prices below which sells or purchases are not permitted and limit further dealings only to closing out of existing contracts.

Debenture - A long term investment that is not usually secured by a mortgage on a specific property.

Equity capital - Long term funds provided by the owners of a firm and consists of ordinary share capital and retained earnings.

Floor Price - The minimum offer price below which bids cannot be entered. The Issuer Company in consultation with the Book Running Lead Manager fixes the floor price.

Listed Company - A public limited company which satisfies certain listings conditions and signs a listing agreement wit the stock exchange for trading in it securities. One important listing condition is that 25% of its issued capital should be offered to the public.

Rights Issues - The issues of new shares to existing shareholders in a fixed ratio to those already held at a price which is generally below the market price of the old shares.

Specified Shares - For the purpose of trading, a security is categorised either as a 'specified' shares or a 'non-specified' security. This is done by stock exchange authorities.

Stamp Duty - The ad valorem duty of 1/2 per cent payable by buyers for transfer of shares in their name.