Showing posts with label Definitions. Show all posts
Showing posts with label Definitions. Show all posts

Friday, March 18, 2016

Promoter

A promoter is an individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often times, these promoters are paid in company stock or free entrance into the investment activity as compensation for their work in raising funds from others.

Saturday, November 14, 2015

Halo Effect

The halo effect is a term used in marketing to explain the bias shown by customers towards certain products because of a favorable experience with other products made by the same manufacturer or maker. Basically, the halo effect is driven by brand equity.
A classic example of the halo effect is the relationship between the Mac notebooks and iPod. When the iPod was released, there was speculation in the market place that the sales of Apple's Mac laptops would increase, because of the success of the iPod. The belief was based on the halo effect, as customers who had a great experience with the iPod would buy a Mac simply because it is made by Apple Inc.











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Thursday, October 15, 2015

Yo-Yo Market

Very volatile market is known as Yo-Yo Market. It will have no distinguishing features of either an up or down market, taking on characteristics of both. Security prices in a yo-yo market will swing very high to low over a given period of time, making it difficult for buy and hold investors to profit.

Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.











Friday, October 9, 2015

Obligation

In the financial world, obligation refers to an outstanding debt that a party must still repay - and if they do not pay, they default on the debt. Obligation is a facility which supports selling of shares on the next trading day after they are purchased in delivery, by allowing you to sell the shares that you have purchased in delivery even before those shares are credited to your Demat account.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.