What is Market Report? Market Report is an index of the business conditions existing in a market during a specific period of time. It reflects the general state of business in the market for which it is prepared.
MARKET REPORT DEFINITION
Market Report is prepared by business experts and media correspondents who specialize in business matters. The print and electronic media have their special reports to report on market situations. Purpose of these reports is to give information to the reader on the tone, tendency, nature, volume and prices of goods transacted in the markets. In addition to, market report also critically analyze different aspects of business transactions for information and guidance of the readers.
ESSENTIAL CONTENTS OF A MARKET REPORT
A market report normally has the following contents as its essential particulars:
- Date of business transactions
2. Place of business transactions
3. Period for which the report is made
4. Names, kinds and quantities of the stocks transacted
5. Position of demand and supply during the period for which a report is made
6. Total volume of business transacted
7. Nature of transactions
8. Opening and closing prices of the stocks transacted
9. Level of fluctuations in the prices and volume of business
- Factors influencing the market
11. Expected future trend of the market
SCOPE AND IMPORTANCE OF MARKET REPORT
Scope and importance of market reports can be better determined by asking the questions beginning with Five ‘Ws’ and What? Why? Who? Whom? Where? How? Answers to these interrogations make the scope and importance of market reports very clear. It is rightly said that a market report is the pointer to the business conditions that prevail in a market. An up-rising market indicates a healthy economic state. Contrary to this, a depressed or sinking market points out to its stale state.
Main purpose of a market report is to show the movement of prices and to tell about the internal and external causes responsible for it. But, the scope of market reports is not restricted to price or volume fluctuations only. They, in fact, give the reader a complete, analyzed picture of the market over a specific period of time. Publication of market reports, thus, helps the readers in deciding what course of action they should adopt for future. It is through market reports that the readers get an awareness of the market conditions, and can, consequently, take necessary steps like buying or selling stocks in order to safeguard their respective interests. It is in this context that the importance of market reports is enhanced.
Following are the important aspects of the information given by market reports. Market reports:
- Keep the readers aware of the price and volume fluctuations
- Give a faithful account of the hue conditions prevailing in the market
- Indicate the position of demand and supply
- Reveal to the readers the factors influencing the market
- Help the investors in safeguarding their interests by hinting at the expected future trend of the market
- Train the naive traders by educating them on the process of business transactions and by giving them knowledge of the technical terms used in markets.
KINDS OF MARKET REPORT
Market reports cover business activities spread over a specific period of time. Depending upon the period for which reports are prepared, market reports are classified as under:
- Daily Market Reports
- Weekly Market Reports
- Monthly Market Reports
- Quarterly, Half-yearly and Annual Market Review Reports
Daily Market Reports: These reports are generally telecast, broadcast and published in newspapers. They indicate the total volume of business transactions, the opening rates, fluctuations, the highest and lowest rates, and the closing rates of the stocks transacted on the previous day. Daily Market reports are of great importance for the traders as they help them in deciding upon their future course of action.
Weekly Market Reports: These reports cover the market activities spread over a period of one week. They present to the readers a summary of the market activities pertaining to the week for which they are prepared and published. Like daily reports, the weekly reports also refer to the fluctuations and ups and downs in the rate and volume of business transactions. In addition to, these reports also highlight the internal and external factors responsible for setting trend of the market.
Monthly Market Reports: These reports are published to tell the readers about the overall business activity carried out during the period of a month. Purpose of these reports is to take a critical view of the prices and demand and supply position of stocks on monthly basis. Monthly market reports usually discuss technical aspects of the business, including critical evaluation of the factors that influenced the market activities. They help the individual investors and financial institutions, both public and private, to make plans for future.
Quarterly, Half-yearly and Annual Market Review Reports: Long term reports, like the Quarterly, Half-yearly or Annual are, in fact, analytical reports. These reports take an analytical view of business conditions prevailing during the period for which they are prepared. Purpose of these reports is to examine critically business policies and to recommend necessary amendments and changes in the policies, if required. These reports are much more thorough and comprehensive in their nature and objectives, and are prepared by highly specialized analysts and experts.