HOW TO
READ MARKET REPORT
DEFINITION
A market is a place where goods are
bought and sold. It is a place where buyers and sellers meet each other
directly or through agents and brokers. It bridges the gap and distance between
the buyers and sellers and provides a platform for buyers to buy their desired
goods and sellers to locate and find buyers.
NATURE
OF MARKETS
READY
MARKET
A market may be a ready market where
goods are bought and sold for ready delivery / spot delivery without
speculation.
FUTURE
MARKET
A market may be a speculative market
where goods are bought and sold for future delivery with a view to gaining
through speculation.
KIND OF
MARKETS
The following are the kinds of a market
/ economic market.
CAPITAL
MARKET
It is a market that deals in
finances. It provides a place where capital is mobilized, offered and invested.
It brings prosperity to a country. It provides lifeblood for production and
industries.
1. Stock Market
This market deals in long-term
capital in the following forms
1. Share Capital i.e. shares, stocks.
2. Long term loans, bonds, debentures.
2. Money Market
This market provides
short-term finances to the commercial and business concerns.
3. Foreign Exchange Market
This market deals in
foreign exchange. This market determines the balance of payment and balance of
trade of a country.
COMMODITY
MARKET
Commodity market is the place where
principal buyers and sellers meet to strike business deals. The business is
transacted in line with prescribed set of rules.
1. Raw Materials Market
This market deals with
the goods in raw forms like jute, cotton, silver, gold, wheat, leather.
2. Finished Goods Market
This market deals in
semi-finished and finished goods like cotton, leather, flour, rice.
3. Bullion Market
Bullion market includes
gold, silver and sovereigns. Its examples are.
MARKET REPORTS
A
market report is a written document that provides a detailed account of the
business transactions that have taken place in a particular market during a
given period of time. It is a type of business reports. There are various kinds
of markets, such as oil, shares, rubber, gold, silver, tin, and every market
issues its report on daily basis.
The report covers the following
information.
1.
Tone of the market.
2.
The governing factor or factors
affecting the market.
3.
Opening rate.
4.
Closing rate.
5.
Previous day’s or week’s rate.
6.
Volume of business.
7.
Index points.
8.
Fluctuation in prices.
9.
Forecast.
10.
In case of a stock market,
special mention of active shares is given.
ADVANTAGES / FUNCTIONS
OF MARKET REPORTS
1.
It exhibits the volume of
business transacted in a particular market during a given period of time.
2.
It facilitates businessmen to
adjust their business plans in line with the need of time.
3.
The report speculates future
movement of prices.
4.
It provides basis for decision
making.
5.
It serves as a medium of
advertisement for a company.
6.
A market report influences
demand and supply of a commodity.
7.
The report provides sufficient
materials for learning
8.
It is a valuable tool for
research purpose.
9.
It acts as a reference for
future actions.
10.
It helps learn technical
business language.
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