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’.

Bonus

Bonus is an extra-dividend which is paid by the company to its employees and stock-holders out of the profits. When a company goes into profit, it distributes some percentage of its profits among its regular employees. This is other than their regular salaries. Likewise, a company also distributes certain ratio of its profits among its share-holders in proportion to the stocks they hold. However, some companies, instead of giving cash dividend, offer additional shares to its stock-holders. The shares so offered, are called Bonus Shares or Right Shares.

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.

Bearish

(Bear Factor, Bearish Sentiment or Short Gide of the Market)

The term ‘Bearish’ refers to the downward trend in prices. A market is called Bearish when there is a general trend of depression in the prices and volume of business transactions. Bearish Sentiment in a market brings the prices further down because every Bear Operator wants to sell his stocks at present. This trend of depression suits a Bear who sells his stock now and buys in future when prices fall further. The Bearish market reduces the profit margin.

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.