Market Price

Market price is determined by the forces of demand and supply. It is the price which we actually offer in the current market dealings. In other words, we may say that the price which is actually paid by the buyer at the time of sale is called ‘Market Price’. It shows the price of every unit of commodity in which traders have dealt in.

Simply, it is the value of goods in a specific period of time.

Lame Duck of The Market

Lame Duck is a person or institution that is not successful and needs the help of others. In business terminology, when prices fall, the commodity which suffers most is called ‘Lame Duck of the Market’. Similarly, the speculator who overbuys goods in the hope of making profit, and finally defaults on the Stock Exchange, is also called ‘Lame Duck of the Market’.

Hedging

Hedging means protecting an investment against loss caused by fluctuations of prices in the market. It also means to counter balance the risk of loss with other transactions. Dealers in stock make future contracts, based on forecast, to make profit. In case of wrong forecast, the dealers wish to transfer some part of the loss to the shoulders of others by making another contract with them. This process of risk transferring through additional contracts is called ‘Hedging’.

Haggling

Haggling means bargaining. It is a process of coming to an agreement about rates by making offers and counter offers by the buyer and the seller. It is a very important feature of the retail market. Haggling also means to wrangle over the prices.

Glut

It means excessive or over-supply of goods for sale in the market. The prices in market are determined mainly by the principle of demand and supply. If the supply of goods is more than their demand, prices start decreasing. Contrary to it, if demand is more than the supply of goods, prices start increasing. When goods are in excess and are not sold at reasonable prices, we say there is Glut in the market.

Flat

A market is said to be flat when it indicates low level of prices. A downward movement of prices sometimes touches the bottom line and there is no sign of an immediate upward charge. In simple words, a market in which prices are extremely weak or low due to more sellers than buyers is described as ‘Flat’.