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Dabba TradingThe illegal practice of buy/sale of securities outside the exchange mechanism without any documentary evidence to relate such transactions. Day order: A day order, as the name suggests, is an order which is valid for the day on which it is entered. If the order is not matched during the day, at the end of the trading day the order gets cancelled automatically. Day Trader: A trader who only takes the position intra-day and does not have any obligation to deliver/receive shares from the exchange. Difference between his sale and purchase is profit or loss for the day.
Dematerialisation: Dematerialisation is the process by which shares in the physical/paper form are cancelled and credited to the Beneficiary Account (BO) in the form of electronic balance and is maintained on highly secure systems at the depository. Demutualization: The process of segregating the ownership, management and trading aspects of a stock exchange to address the issues of conflicts of interest. European call: A put or call option that can be exercised only on the day of its expiration and not before that.
Ex-bonus: The share is described as ex-bonus when a purchaser is not entitled to receive the current bonus, the right to which remains with the seller. Ex-rights: The share is described as ex-rights when a purchaser is not entitled to receive the current rights, the right of which remains with the seller. Face Value: Par value of shares, which indicates the nominal value of shares. Dividend is based on face value. Forward trading: Forward trading refers to trading where contracts traded today are settled at some future date at prices decided today. |
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