Odd Lot
A technical analysis theory/indicator based on the assumption that the small individual investor is always wrong. Therefore, if odd lot sales are up – that is small investors are selling stock – it is probably a good time to buy.In the stock market shares are generally bought and sold in MARKET LOTS, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from BONUS or RIGHTS issues. Apart from the difficulty in buying or selling odd lots, there is another disadvantage: you may have to sell an odd lot at a considerably lower price than that quoted for a market lot. There is, however, some good news. The government has now advised all listed companies to form a trust to deal in odd lot shares. The trustee will sell shares only of that company, through brokers, and not indulge in independent trading. The company will send the rights and bonus shares of the scrip to the trustee, and when the trustee has consolidated them into marketable lots he will go to a recognized broker dealing in the shares of the company. The holder of the scrip will pay a small service charge and the usual brokerage.
Offer by Prospectus
A prospectus issued by a company for a public issue of shares or debentures discloses the basic information about the company and the risk factors involved with it .
OTCEI, or Over the Counter Exchange of India
it is the act approved by the Government of India in 1989, which came into operation in 1991. It has no particular marketplace or stock exchange floor,It is a ringless exchange, located in a number of places in a city, and many large towns, interlinked by a computer network.. In OTC, buyers and sellers operate on negotiated prices acceptable to both. The objective of the OTC are liquidity, fixed and fair price, simplified process of buying and selling, quick disposal of orders, and a cheaper method of public sale of new issues
The investor has to go to one such counter, watch the quotations on electronic display board, and make a deal at a very reasonable price. He is not price – blind; he knows exactly at what price the transaction has been made.
The General Insurance Corporation has set up a number of counters all over the country. The promoters of OTCEI were ICICI, UTI, IFCI, IDBI, SBI Capital Markets, Canbank Financial Services, LIC, and GIC.
Other Income
Apart from income from a company’s normal activities, profits may accrue on other heads, such as interest income, investment income, profit from sale of asses other than INVENTORY, gain on foreign exchange transactions, rent income, etc.
Overbought
Term used in TECHNICAL ANALYSIS to indicate a sharp rise in the price of a share or shares as a result of hectic buying by investors and speculators in the hope of further rise. An overbought share or market is prone to an imminent CORRECTION, as there are few buyers left to push the price up any further.