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.

Blue Chips

This term is used for the securities of well-established and sound companies that enjoy good reputation in the market. They are comparatively free from risk and greatly sought for.

In other words Blue Chips are the stocks that sell at high prices because of public confidence in their long record of steady earnings. We see that all stocks do not always sell at good prices and in good volumes. There are some specific stocks which, due to their good record, constitute major chunk of the volume transacted. These stocks are known as the Blue Chips of the market.

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.

Bullish

(Bull Factor, Bull Sentiment, Long Side the Market)

Bullish is opposite of Bearish. A market is called Bullish when there is a general tendency of rise in the prices of stocks in future. Bullish trend in the market results in an increase in the demand for stocks which causes further rise in prices because every Bull Operator wants to buy stocks to sell them at higher rates in future. Bullish trend indicates a period of rise in the prices and volume of business which suits the Bulls.

Bull

A speculator who anticipates rise in price in future and, therefore, buys at present when the price is low and sells in future when the price rises up and, thus, makes profit is called Bull. Like a Bear, a Bull also neither takes actual delivery of stocks nor makes any payment till a specified time in future when he is required to settle his account. A Bull is just opposite to a Bear.

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.

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

1

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.