stock and commodity market.. its all about stock exchanges, speculations, speculators, brokers, types of it, etc.

1. STOCK AND
COMMODITY
MARKET

4.  Speculation has a special meaning when talking
about money.
 It is the transaction of members to
buy or sell securities on stock
exchange.
 With a view to make profits
 To anticipate rise or fall in price of
securities.

6. Speculator does not buy goods to own
them, but to sell them later.
The reason is that he wants to make
a profit from the change in price.
One tries to buy the goods when they
are cheap and to sell them when they
are expensive.
 There is a good chance to profit as long
as the market price of a good changes
often in different directions.

7. DEFINITION OF
SPECULATOR
A person who trades derivatives, commodities,
bonds, equities or currencies with a higher-
than-average risk in return for a higher-than-
average profit potential.
Speculators take large risks, especially with
respect to anticipating future price
movements, in the hope of making quick, large
gains.

9. Speculators
Jobber
Broker
Bull
Bear
Lame duck
Stag
Contango

16.  With the expectation that there will be a rise in
the price of certain security in the future.
 A bull is known as tejiwala in BSE is a speculator
who indulges in speculative buying activity.
 He purchases to sell shares on higher prices in
future.
 The activity of a bull speculator is technically
called Buying Long.
 He is called a bull because he pushes up the
prices of securities through his activities just as
a bull throws his victim upwards.

19.  A bear is known as Mandiwala. In the BSE he is
a speculator who indulges in speculative selling
activity with the expectation that there will be
a fall in price of certain security in the future.
 The activity of the bear (i.e. selling certain
security which he doesn’t possess) is
technically called selling short.
 He is called the bear because he focuses the
price down through his activities just as a bear
presses his victim down to the ground.

21.  A lame duck is a bear speculator who has
contracted to sell certain security on certain
date at a certain price.
 But finds it difficult to meet his commitment
on the settlement day
 As the concerned security is not available in
the market and the other party is not
agreeable to the postponement or carry over of
the transaction.

22.  He is called a lame duck because he is like a
lame duck in the water struggles (i.e. Finds it
difficult) to meet his obligation on the
settlement day.

24.  A stag is a speculator who applies for a large
number of shares in a new issue with the
expectation of selling them to the public
immediately after allotment at a premium and
making profit.
 He is called a stag , as he is very caution in his
dealings like a stag.
 He takes his decision to purchase and sell
securities only after weighting the pros and
cons over and over again.

25.  He also keeps his dealings within limits so that
his losses could be reduced, even if he suffers
loss in his dealings.
 A stag is generally considered as a special type
of bull, as he specialises only in buying the
shares in a new issue.

27. CONTANGO means to come over dealing to
the settlement.
 The broker is paid a reward to carry the
settlement , it is also known as contango.
 In some cases if buyer is unable to make the
payment of securities on any particular date.
 So he request the broker to carry on the
dealing to the next settlement.

28.  BACKWARDATION is an interest which is
paid by the sellers of securities to the buyers
who wants to postpone transactions to the next
account.