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.

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.