Essential Elements of Market Report | Factors of Market Report

Preparing market report is a complex and specialized task. A haphazardly prepared report cannot attract the attention of the readers and fails to satisfy the demand of the readers. For this reason, it should be prepared by incorporating the following elements:

  • Title: A market repot must have an appropriate title. From the title, the reader can easily understand the subject matter of the report.
  • Name and address of the market: Market report must mention the name and address of the market on which the report is prepared. Dhaka Stock Exchange, Chittagong Stock Exchange, Kawran Bazaar Vegetable market etc. are the examples of the name of market reports.
  • Time or period of the report: Market repost should specify the time period for which it is prepared. It is generally prepared for daily, weekly monthly etc.
  • Date of preparing and publishing report: Market report must clearly specify the date on which it is prepared and the date on which it is published.
  • Description of the product traded: A short description of the traded product like product name, symbol, features, uses etc. should be included in the market report. For example, in a market report on jute expresses the quality and features of jute as A bottom, B bottom, C bottom.
  • Quantity of the product traded: Market report should reveal the total volume of the products traded during the market period. The information helps the readers to understand the buying and selling trends.Essential Elements of Market Report
  • Information related to price: Incorporation of buying and selling price is an essential element of market report. It should mention the opening, closing, and average, lowest and highest price of the product.
  • Nature of transaction: Products are trades on spot transaction and future contract basis in the market. Whatever the mode of transaction is, it should be specified in the market report.
  • Mentioning the overall condition of the market: Market report should present an overall condition of business activities along with demand and supply, price index etc.
  • Price index: Market report also indicates the changes in price levels during the market period. This change in price level is generally mentioned in the form of price index.
  • Causes of price fluctuations: In a market report, causes of price fluctuations should be clearly mentioned. This fluctuation may occur for a specific unusual cause or for many usual causes.
  • Terms of delivery: Products may be traded on conditions relating to delivery time, place, mode of payment etc. whatever the condition is, it should also be specified in the report.
  • Opinion of the reporter: The report can include an opinion of the reporter regarding future business trends on the basis of market information. This obviously enhances the utility of the report to the readers.

Principe Factors of Writing Market Report

Principles mean proven guidelines in performing a task. Preparing report is a complex and specialized task. Therefore some principles should be followed in preparing market report. Some important principles or considering factors in preparing market report are discussed below:

  • Simplicity of language: Language of market report should be simple and easy so that the readers can understand it easily.
  • Correctness: An ideal market report should be free from all types of errors like grammatical errors, spelling errors, presentation errors etc. This will increase the acceptability and attractiveness of the report.
  • Accurate presentation of market conditions: Market report must give an accurate picture or market transactions, purchase and sale, demand and supply, price etc.

    Specific structure: Market report should be prepared by following a definite structure. This enables the readers to locate their desired information.
  • Relevance: Market report should present only the information relevant to the market transactions. Presenting any irrelevant information will decrease its acceptability.
  • Clarity: The massage of the report must be clear and unambiguous. Clarity depends on proper arrangement of information, accuracy of information and use of appropriate language.
  • Preciseness: Market report should mention the relevant information precisely. Preciseness helps to save time and efforts of the readers and writers.
  • Impersonal presentation: Impersonal presentation of information is another vital principle of market report. It means, the report should not be written by addressing someone directly.
  • Use of technical terms: In order to indicate various market conditions and mode of transactions, various technical terms and jargons can be used in the report. For example, to indicate price increase in the market, the term “upward trend” and to indicate price decrease in the market, the term “downward trends” can be used.
  • Consistency: The contents of the market report should be consistent to each other. Any inconsistency in the contents of report will negatively affect its utility.
  • Inclusion of necessary causes and explanations: Market events might be caused by one or more causes. Therefore, it is necessary to explain the possible causes of every market event.
  • Neutrality: Market report is regarded as a neutral statement of market conditions. Hence, information contained in the market report must be neutral and free from any business.
  • Reporter’s remarks: Reporter’s Neutral opinion certainly increases the acceptability of the report to its readers. Therefore every ideal market report must contain remarks of the reporter.