| a
| b | c
| d | e
| f | g h
| i | k
l | m n
| o | p
| r | s
| t | u
v w |
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| Efficient Market
Hypothesis |
| Prices fluctuate randomly about their
intrinsic value. This theory also holds that the best market
strategy to follow would be a simple buy and hold strategy
as opposed to any attempt to beat the market. |
| Equally weighted Index |
It is a method of Index computation in
which all the components of Index carry equal weight irrespective
of their price or market capitalization.
|
|
Exhaustion Gap |
|
Appears near the end of a market move. After all objectives have been achieved
and the other two types of gaps (breakaway and runway) have been identified, the
analyst should begin to expect the exhaustion gap.
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|
Exercise of a call or put option |
|
Buying of a call or put option gives the right to buyer to exercise the same as
per his wish. Exercise means to ask the seller of Call/Put to fetch/accept the
deliveries of the contracted quantity as when required by buyer. Sellers have an
obligation to comply with the buyers wishes. It should be noted that stock
options can be exercised at any time after buying the contract of underlying
whereas Index options can only be exercised on expiry of contract.
|
|
Exponentially Smoothed moving Average |
| The
exponentially smoothed average assigns a greater
weight to the more recent action. Therefore, it is a
weighted moving average. But while it assigns
diminished importance to past price action, it does
include in its calculation all of the price data in
the life of the future contract. |
| European Option |
|
| In a European
Option one can not exercise an option before its
expiration. It can only be exercised at its expiry.
Index options on NSE of India are European in
nature. |
|
