Commerce Paper 2, May/June 2013  
Questions: 1 2 3 4 5 6 7 8 9 10 Main
General Comments

question 4

Write explanatory notes on the following stock exchange terms:

  1. Bull;
  2. Bear;
  3. Option;
  4. Backwardation;
  5. Cartago.



The explanation of some of the stock Exchange terms were well attempted. But the following should be noted.
Option: is chance to buy or sell a share at an agreed price and at an agreed future time. An option to buy is called - call option while option to sell is called - put option.

Backwardation is a penalty paid to stock broker by a seller of shares who fails to deliver on the agreed date.

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