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Market on close which is often abbreviated as MOC refers to the order which is granted by a market asking us to carry out the respective order of the market as near to the end of the exchange day or trading day as possible. That is in other words it refers to the order by the market to buy or sale the shares and stocks of a company only towards the end of the company’s trading day or exchange day. As such the market on close is often referred to as the ‘at the close order’. But before we go deep into this topic let us understand a few other terms which might prove helpful for us in understanding Market on close better. So let us explain market on close.
Explaining the market
When we say ‘market’ what do you perceive in your mind? I am sure that all that comes to your mind are the various shops with their shop keepers selling a wide variety of goods; some shops dealing in clothes while some others dealing in shoes, again there are some others that deal in cosmetic items or stationary items or even grocery items. But when we say market it does not just means the above mentioned shops and their respective shop keepers though this is the conventional view that most people today have.
The term market has several other meanings. Generally we can define market as a place where goods and services are bought as well as sold through a direct and face to face communication between the buyers and the sellers. But in this article market has a new meaning all together. Here the meaning of the term market is in a slight manner different from the general meaning or view that people have.
Buyers and sellers
In this article too we regard market as a place where the functions of buying and selling takes place between the buyers and sellers. But in these markets instead of goods and services securities are traded. Now securities here refer to the various types of shares and stocks, etc. issued by the company to the public so as to enable them to subscribe for the share and stock of the company so that the company can raise finance for itself. In these markets even without the direct contact between the buyers and sellers securities are traded in the market, that is in other words even without coming into a direct or face to face communication these securities are bought and sold in the market. You can get some idea about online stock market.
But buying securities in these markets is not a cake walk. Though the concepts of both the markets are quite similar but the concept behind the working mechanism of the two markets are entirely different. In the general market we buy goods because we need it but in the second form of market we do not buy goods simply because we need it but to earn profit. Buying securities in the second market is known as investing. We invest in securities so as to enable the mobilization of our savings and at the same time earn or rather maximize our profits. You should try to get some idea about the working of BSE.
These forms of market involve tremendous risks as there is a possibility that you lose all that you have invested. As such you have to be very careful when you invest in these markets. Like in our general markets we either buy things that we require or those things that we desire, but here the questions of requiring and desiring does not arise at all. We buy or rather invest in those shares and stocks that we believe can provide us the maximum return or in other words profit on the money that we have invested. So be cautious when you invest your money. So now you can explain market on close.
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