Stock market terms

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Unformatted text preview: quity Same as Stock. Ex dividend shares Ex dividend is the price of the share which does not contain dividend declared by the company. The buyer is not entitled to the dividend amount. Face value The nominal value printed on the face of the share, debenture or bond. Also known as Par Value. Forward trading Forward trading refers to trading where contracts traded today are settled at some future date at prices decided today. GDR (Global Depository Receipt) It is an instrument issued abroad, listed and traded on foreign stock markets. A GDR is convertible into shares, which are listed and traded on the domestic exchange, the dividend being paid in the domestic currency. IPO Initial Public Offer. It is the first offering of equity shares made by a company to the general public. Prior to the IPO the company's shares are held by a select group of people and are not available to the public. Liquidity Liquidity refers to the amount of transactions in a particular counter, the larger the volume of trading, higher the liquidity. L...
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This note was uploaded on 07/20/2012 for the course ECON 203 taught by Professor Girishdev during the Spring '12 term at Indian Institute of Technology, Kharagpur.

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