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’.

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.

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.

Ex-Ship

In case of import of goods by sea, prices of goods are offered as ‘Ex-Ship’ prices. This is the price which is charged by the seller in order to deliver the goods at the seaport or dock. All such business transactions in which goods are delivered to the buyers at the dock or seaport are termed as ‘Ex-Ship Sales’. Ex-Ship Prices do not include costs of unloading and delivery to the premises of the buyers.

Dumping

Literally ‘Dumping’ means to place goods on a market, especially in a foreign market, in large quantities and at a low rete. When a country tries to capture the market of a foreign country, it starts dumping its goods in large quantities and at low prices, sometimes, even below the cost of production. Particularly, when there is a severe competition between countries in the export of goods, a country dumps its goods to promote its sales abroad and to acquire monopoly in foreign markets. After the Second World War Japan dumped the markets of foreign countries by selling its goods at lower prices. China, Taiwan and Hong Kong are doing the same at present.

Demurrage

After goods reach a port, they are required to be cleared within a stipulated time. Sometimes, the goods are not cleared within the specified period of time because of one or the other reason. The detention of ship or other cargo-carrier for loading or unloading, beyond the scheduled time of departure is termed as ‘Demurrage’. A charge made on the goods by Railway or Transport Companies or shippers etc. for retaining goods beyond a specified time is called Demurrage.

Bull Campaign

(or Bulling the Market)

It is a campaign launched by the Bull operators to earn profit. When speculators as Bulls find that their speculations and conclusions have proved wrong and the price of the goods does not rise according to their expectations, they try to influence the market by spreading rumors in order to ensure profit for themselves. This effort of the Bulls to influence the price through agents or by other means in a healthy market is known as Bull Campaign or Bulling the Market.

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.