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stock market terms - TCYONLINE WE COACH THE NATION STOCK...

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TCYONLINE WE COACH THE NATION TOP CAREERS & YOU www.tcyonline.com/topedge [email protected] +91-161-460-908,461-364 STOCK TERMS A group The A group consists of 150 scrips in which carry forward (badla) facility is provided. Acid test ratio It is the ratio indicated by dividing a company's current assets to current liabilities. It reflects the financial strength of a company and hence called Acid test ratio. Also known as quick ratio. Active market Heavy volume for a specific share or the entire exchange. Annual report Audited document sent to the share holders at the end of each fiscal year reporting the financial results of the company. Asking price The lowest price at which someone is willing to sell a security. Also known as Offer. Assumed bond Bond which is issued by one company but whose liability is taken over by another company. B1 group This is also called as non-specified group and consists of good quality, high volume scrips. B2 group This is also called as non-specified group and these are low market captialisation, thinly traded stocks. Badla Carry Forward Trading. Bear market A bear market refers to a continuous phase of declining share prices. Bear markets are characterised by overall pessimism as market participants expect prices to decline in the future. Bid The highest price at which someone is willing to buy a security. Blue-chip The term 'Blue-chip' refers to stock of well-known companies with stable businesses. These shares are actively traded, as the company's growth prospects are considered good. Bonds They are loan instruments. A bond holder is the creditor of the company. Bonds are normally issued for a minimum period of three-years for a specific interest rate. Bonus shares Bonus shares are the shares given to share holders free of cost. Book building The process of securing the optimum price for a company's share. The issuing company decides the price of the security by asking investors how many shares and at what price they would be interested in. Book runner Institution that arranges and manages the book building process for the new public issue. Book value It is the value at which an asset is carried on a balance sheet. The book value of a share is obtained by dividing the equity reserves of the company by the number of shares issued.
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TCYONLINE WE COACH THE NATION TOP CAREERS & YOU www.tcyonline.com/topedge [email protected] +91-161-460-908,461-364 Brokerage Brokerage is the commission charged by a broker. The maximum brokerage chargeable, as stipulated by SEBI is at present 2.5% of the trade value.
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