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’.

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.

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’.

Dividend

That which is to be dividend, the share of a sum dividend that falls to each individual by way of interest or otherwise. It refers to the divided part of profit of a company which is paid to its share-holders or stock-holders against their investments.

Clogging

Clogging literally means hampering or obstructing. As a market term, it refers to a situation when the market is saturated with surplus funds which obstruct the normal operation of business. Steady flow of capital is an essential requirement of a market but, sometimes, funds pour into more than they are required. The surplus availability of funds eventually disturbs the normal functioning of the market and results in the Clogging of business activity.

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.