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.

Ex-Warehouse or Ex-Factory

These are the commonly used terms in business correspondence. These show the terms and conditions on which business transactions are made. The term “Ex-Warehouse” or “Ex-Factory” means that the delivery of the goods is to take place at seller’s factory or warehouse. The goods are supplied direct from the factory or warehouse. This term indicates that the buyer of a commodity will pay the charges for bringing goods from the place where they are stored.

Bear

A bear is a very special trader who is engaged in speculative business. He sells his bills and securities at present when the price is high and buys in future when the price is low. In this way simply by speculation, he earns his profit because of difference in the buying and selling prices. A Bear usually neither delivers the goods nor accepts the price, till a specified time in future. A Bear is taken as a gloomy businessman as he hopes for a decrease in the price of goods in future. This speculator is known as Bear Operator and in America he is known as ‘Short’ or ‘Short Dealer’.

Arrivals

It refers to the fresh stocks of commodities brought to the market in a specific period of time other than the total supply of the same commodities in that market. This term is used in the market reports to show an increase in the supply of a commodity. Arrivals play a very vital role in determining the prices of commodities.

Arbitrage

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It means buying stocks and shares, commodities, currencies, etc. on one market and immediately selling them on another market in order to earn profit from the difference in price. A certain commodity may have may have different prices at the same time in the same or different markets. Alert businessmen buy it from the market where its price is low and sell it where its price is comparatively high and, thus, they earn profit due to the difference in prices. In other words, arbitrage is the process of holding business transactions simultaneously in different markets to earn profit because of difference in prices.