Important Terminology In Financial Market


 
 
Concept Explanation
 

Important Terminology In Financial Market

Authorized Capital

  • It is the maximum amount of share capital fixed in the Memorandum of Association of a company as required by the Company's act. They are also known as nominal capital.
  • Issued Capital

  • It is that part of a company's capital that has been subscribed and allotted to shareholders. It is a broader concept than paid up capital.
  • Paidup Capital

  • It is that part of the issued capital of a company, paid up by the shareholders (promoters). It is that part, invested by the promoters. Therefore, an issued capital may or may not be a paid up capital.
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    Arbitrage

    A company listed in many stock exchanges & the rate of share is different in different stock exchange. Through this situation customer got profit through trading & this profit is known as arbitrage.

    Hedging

    When customer invest money in different assets like share, debenture, bond... etc to control the risk of market.

    Bull Market

    A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gains). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery.

    Bear Market

    A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism.

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