What is Market Report? - Definition, Importance, Terms

A market report contains business transactions that have been taken place in a particular market during a given period of time. It shows the market condition of a commodity in terms of its price, demand, supply, volume and so on. Such report may be daily, weekly or monthly. The market report is a kind of business report.

In this section we are discussing the following.

1. Contents of market report.

2. Importance of market report.

3. Technical terms of market report.

Following are the contents of market report.

1. Health of exchange.

2. The governing factor.

3. Opening rate.

4. Closing rate.

5. Previous day’s or week’s rate.

6. Volume of business.

7. Nature of business.

8. Fluctuation in prices.

9. Forecast business conditions.

Importance/Functions/ Advantages of Market Report

1. It reveals volume of business transacted.

2. It indicates future movements of prices.

3. It serves as a means of advertisement for a company.

4. A market report shows the effects of demand and supply of a commodity.

5. A market report yield statistics for comparison.

6. A market report is helpful for learning technical business language.

7. A market report is a crucial instrument for research purpose.

8. It gives enough material for learning.

9. The information contain in it is helpful to gain from right investment.

10. A market report provides basis for decision making.

Terms of Market Report

Arrivals: When fresh stocks are brought to the market, it is known as arrivals.

Attractive Levels: When the price is high, it is known as attractive level.

Bad Book: When a jobber find the prices of his previously bought securities have gone down, it is known as bad book.

Bare: It refers to shortage of a particular security in a market.

Bearish Sentiment: When there is a pessimistic feeling that the price will fall, it is known as bearish sentiment.

Boom: It refers to prosperity, increase in prices, and good volume of business.

Blue Chips: They are shares of the leading companies having good reputation, greater earning power and better record of dividend payment.

Break-even: It is a situation when transaction is terminated with neither profit nor loss.

Budlah: When transaction is postponed to the next settlement day, it is known budlah.

Bullion: It refers to precious metal, gold or silver.

Dumping: When the goods are sold at lower in a foreign market, it is known as dumping.

Glut: It refers to excessive supply of a commodity in a certain market. Glut forces price to come down.

Hella: It is temporary suspension of market dealing due to abnormal rise or fall in prices.

Slump: It refers to sudden fall in market value of a security.

Speculation: When goods are bought or sold for future delivery.

Stock: This term refers to full paid up shares, bonds and debentures.

Nominal Value: It refers to the amount stated on face of securities.

Forward buying: When contract is made to take delivery of goods in future is known as forward buying.

Wall Street: New York Stock Exchange located in Wall Street.