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December 04 2015



Who owns guns in America? White men, mostly.Part of the problem with the gun Commercial Construction Market Construction debate in America is that gun owners Residential Construction and Construction Methods people who aren't comfortable with gun ownership are, to a certain extent, just different kinds of people.

Gun owners are more likely to be white, male, and rural. People Construction Contractors who don't own guns and even more so, people who are

July 22 2015


Stock Terms - Glossary of Stock Market Terms and Definitions

Before beginning my glossary, let me first define the scope of this glossary. Stock market terminology is a very vast subject that covers the bond market, stock market, trading, portfolios and even stock term slang or jargon. So, if you're wondering what exactly this article contains, let me give you an insight. My article mainly contains all the stock terms, from all the general categories of stock market finance, and also includes the phrases and jargon that you should most specifically know, if you're entering the stock markets. It includes all possible terms belonging to the categories of 'investment finance', 'mutual funds', 'stock market regulatory policies', 'trading basics', stock market basics and 'stock market instruments'.

Before I start my stock terms glossary, let me tell you about the schematic progression of this article. It follows an alphabetical series, starting from the letter 'A', going all the way down to the letter 'Z'. The list also defines some alphanumeric words. I hope that finding the stock term you are looking for, will be easy to locate in this really long list of stock terms and stock market definitions.

Stock Market TerminologyStock Market DefinitionsA Share

The words 'a share' has two meanings: (a) They are the calls of common or preferential shares that have increased voting rights on company issues. (b)In USA, mutual funds terminology states 'a shares' to have an upfront sales load of 5.75% of the amount invested.

Abnormal Return

Any return above (abnormal profit) or below (abnormal loss) the expected return on a stock or a portfolio is termed as abnormal returns. Any returns above the market returns or any returns below the market returns are also abnormal returns.

Absolute Priority

The distribution of a company's net income is undertaken in accordance with the absolute priority rule, that specifies the order of disbursement as: (a)Interest to Creditors (b)Dividends to Preferred Stockholders and (c)Dividends to the Common Stockholders, in case of liquidation.

Acceleration Covenant

In a case of default or breach of contract, this covenant or clause matures the contract performance immediately, so that all dues are settled immediately.

Accommodation Trade

When a trader enters into non-competitive trades in order to avoid certain liabilities, the action is termed as an accommodation trade. This agreement is illegal in most countries.

Accrued Dividend

A normal dividend that is considered to be earned but is not really declared or immediately payable by the company.

Accumulated Earnings Tax

The federal tax that is levied on any retained earning that are in excess of the amount considered reasonable, is termed as accumulated earnings tax.

Acting in Concert

When two investors take similar actions (act together), to achieve a single common goal, they are said to be acting in concert.

Accounts Payable Turnover Ratio

This is ratio that measures the rate at which debts are discharged by a firm. It is calculated by dividing the total annual purchases with the total annual accounts payable. The higher the ratio is, the better it is for the firm.

Active Index Funds

These are funds where the managers try to track an index like S&P500. There is an attempt to beat the benchmarked index by using strategies, like adding stocks that have a superior performance in relation to the index and by using market timing, etc.

Actively Managed ETF

Actively Managed Exchange Traded Funds permit fund managers to trade outside the benchmarked index, deviate with respect to sector allocations and make other changes that are necessary to ensure increased returns.

Activity Ratio

This is the firm's effectiveness indicator, for it shows the ease and speed of the company to convert various accounts and receivables, into sales and cash.

Adjustable-Rate Preferred Stock - ARPS

Unlike a fixed rate preferred stock, an adjustable-rate preferred stock pays dividends that fluctuate with the rate of interest on the benchmarked Treasury bill.

Adjusted Debit Balance

This is the final margin account balance, that is arrived at by netting all the balances owed or outstanding payments, with the on paper profits or losses.

Adjustment in Conversion Terms

Convertible preferred stock can be exchanged for a fixed number of common shares in accordance with the conversion terms. Adjustment in conversion terms can be made so that the holder of the convertible preferred stock does not get affected by events like common stock splits.

Advance Commitment

When someone promises to sell (or buy) something that he currently doesn't own (or hasn't bought yet), he is said to be making an advance commitment.

Affidavit of Loss

This is an oath which states that either the stock certificate or any other physical record of being the holder of the security has been lost on account of theft, fire, destruction or flood.

Affirmative Obligation

This is an obligation on specialists to post a bid or an ask, when there is insufficient market demand or supply to match orders, on the NYSE.

After-Hours Market Close

The final price attained by the security, in the after hours market, is called the after-hours market close. Although, this is not the price at which the market opens the next day, the investor can use this to gauge the upside potential of the stock.

After-Hours Trading - AHT

Trading that is conducted by both, individuals as well as institutions, after the regular trading hours on the major exchanges is called after-hours trading.

After-Market Performance

The performance of a stock after its initial public offering (IPO), which is measured during the lock-up period (3 to 9 months from the date of the IPO), is referred to as after-market performance of the stock.

Agency Cross

When a broker receives opposite orders for exactly the same security, in exactly the same quantity, he can act as an agent or broker for both the parties involved. This both party representation by one person, is called agency cross or dual agency.

All Or None - AON

Is a buy or sell trade order, that is placed to brokers, subject to the exact availability of supply or demand. Non availability on the particular day, renders the order as canceled.

All-Holders Rule

The all-holders rule requires a company to implement uniform policies (stock buybacks, stock splits, stock dividends) for shareholders belonging to the same class of shares.

Allied Member

Voting shareholders and officers may be granted access to the trading floor, as allied members, despite not being members of the New York Stock Exchange (NYSE), provided they clear the designated exam.


This risk adjusted performance measure called alpha, is just the differential between the actual and expected returns of a stock or portfolio.

Alpha Generator

When a portfolio holder experiences excess returns on adding a security to the aforementioned portfolio, without having to undertake any additional risks, the particular security is known as an alpha generator.

Alphabet Rounds

The early rounds of funding that are required for the start up of a new company or firm, are termed as alphabet rounds.

Alternative Energy ETF

These are exchange traded funds that invest in companies engaged in the production of alternate energy, like ethanol, solar power and clean energy and research pertaining to the same.

American Depositary Receipts

When depository banks in the US economy issue negotiable certificate of deposits, known as American Depository Receipts (ADRs), to help foreign companies raise money in their markets, the certificate is known as an ADR.

American Depositary Shares

When foreign stock is issued in the US markets, it is termed as an American Depository Share (ADS).

Anderson Effect

Derived from Aurthur Anderson LLP, an accounting firm involved in many scandals, the term Anderson effect refers to the due diligence requirement needed by the auditors.

Ankle Biters

Stock issues with market capitalization of less than $500 million are popularly referred to as ankle biters, since they tend to gnaw at the ankles of large cap stocks that have a capitalization value of more than $10 billion.

Announcement Effect

When announcements, regarding changes in monetary and fiscal policy, create a ripple effect in the stock market (increased volatility and trading volumes) the phenomenon is known as an announcement effect.

Annual Report

This is a detailed document provided by public companies, providing the financial highlights, management discussions and analysis (MD &A), financial statements, auditor's report, corporate information and other relevant information to the shareholders.

Annual Return

The annual return of an investment is its compounded annual growth rate, calculated with the help of a formula.

Anonymous Trading

This is when high profile investors are allowed to place bid and ask quotes anonymously, to eliminate unnecessary speculation.

Anti-Greenmail Provision

Greenmail is a defensive maneuver wherein a premium is paid to the majority shareholder to sell back shares to the company to thwart a potential takeover attempt. Anti-Greenmail provision ensures that the same repurchase offer is made to all shareholders or at least approved by a shareholder vote.

Anti-Martingale System

Martingale is a class of betting strategies (see martingale definition) and anti-martingale system is a system that thwarts the success of these strategies.

Anti-Takeover Measure

These are continuous and sporadic measures adopted by companies, to prevent the potential acquirer from making a hostile bid for the target company.

Anti-Takeover Statute

Anti-Takeover statutes are state regulations that aim at curtailing hostile takeovers.


This is a transaction that has the effect of increasing a company's Earnings Per Share (EPS).

Any-and-All Bid

An any-and-all bid is the maximum price at which the acquirer is willing to purchase any shares of the target, up to the pre-determined amount.

Appraisal Right

This is a third party valuation demanded by the shareholders to ensure that mergers and acquisitions do not result in the acquirer paying less than the present value of the target company's worth.

Approved List

This is the list of legal investments that limits the account manager's or broker's array of choices, as far as choosing appropriate stocks and securities for trust funds and mutual funds, is concerned.

Arithmetic Index

This is an index that gives equal weighting to all the individual stocks that make up the index. This is basically an unweighted index, as all stocks have an equal weighting.


This is the price or quote, at which a trader is willing to sell his commodity or security.

Asset Mix

This refers to the various classes of assets, viz. stocks, bonds and real estate, that make up an investor's portfolio.

Asset Performance

This is a measure of the company's ability to generate revenues using productive resources, in relation to its peers. It is measured with the aid of Turnover ratios, Return on Asset (ROA) ratio and other indicators.

Asset Turnover Ratio

This is a ratio that measures the company's ability to generate revenues using productive assets.

Asset Valuation

The process of determining the value of an asset, a company or a balance sheet item using relative valuation; quantitative valuation techniques like free cash flow model, dividend discount model and residual income model; financial statement analysis and other techniques is known as asset valuation.


A complete distribution of the new securities issued to the public, is known as assimilation.

At-The-Close Order

This refers to the execution of a market order or a limit order, at a price that almost matches the closing price. In case a last minute execution is not possible, the order stands canceled.

At-The-Open Order

Order to buy or sell a security at the opening price or at the start of the opening season, failing which, the order is canceled.

Atlas Options

This equity based exotic option, that belongs to the mountain rage option family, has a unique way of payout calculation. All the best and worst performing stocks are removed from the underlying equity portfolio and they payout is calculated on this figure.

Attribute bias

If a stock selecting technique produces results with similar fundamental characteristics (leading to obvious correlation), the technique is said to have an attribute bias.


This is a system where different buyers place potential bids to buy a particular product or security. There are various different types of auctions, like a Dutch auctions.

Auction Market

The bid price and the ask price are matched for the sake of executing an order, thus eliminating any scope for negotiations, in an auction market.

Authorized Capital Stock

This is the maximum number of shares that can be issued by a corporation, as listed in the capital accounts section of the balance sheet.

Automatic Stay

This is applied when a firm files for bankruptcy. It basically stops all creditor efforts to recover their liabilities, from the one filing for bankruptcy.

Average Cost Basis Method

When trying to make out the gains or losses made during the sale of some shares of the mutual fund, the average cost basis method is used to calculate the cost basis.

Average Down

This is an investor strategy that is used to bring down the average price of shares.

Average Qualitative Opinion - AQO

This is the number given by stock analysts to individual companies, depending on their opinions and stock ratings.

Average Up

An investor strategy that aims at getting the average cost to be lower than the average price for a group of shares by buying them collectively and in larger numbers.

Away from the Market

When a security order is not immediately available at the price required, the security is termed to be away from the market.

Stock Market TerminologyStock Market DefinitionsBack Up the Truck

A financial slang used to refer to a large purchase transaction made on a stock or financial asset with the backing of a bullish expectation.

Backing Away

When a market maker fails to uphold his end of a deal, i.e. fails to honor a posted bid or ask even though his price new ipo quantity caveats are met, he is said to have backed away.


Something that is opposite to goodwill, badwill is gained when the shareholders and others in the investment community find out that the company has indulged in something that cannot be considered a good business practice.

Bagel Land

When the stock price of a financial security is approaching 0 dollars, i.e, it has fallen from stock market favor due to unresolvable internal issues, the stock is said to have reached Bagel land.

Baptism by Fire

Difficult situations (like IPOs and hostile takeover attempts) are experiences by a company or an individual, it is said to be a 'baptism by fire' situation. This either strengthens the financial position of the subject or completely tramples it.

Barefoot Pilgrim

An unsophisticated investor who loses all his wealth because of stock trading (no knowledge of risks, return and predictions) is termed as a barefoot pilgrim.

Barometer Stock

When a security pricing pattern closely resembles the overall market, such that, it can accurately predict the market pattern through its own pricing, it is called a barometer stock. All bellwether stocks fall under this category.

Basket Trade

Basket trades are single order sales that entail the buying or selling of a set of 15 or more securities.

Batch Trading

When different orders are accumulated together and executed simultaneously, the transaction method is termed as batch trading.


A bear market is a market when the general price levels are spiraling downwards. A bear is a person holding pessimistic market views and hence invests in strategies that pay out when the price of the securities decline.

Bear CD

A CD (Certificate of Deposit) that carries an interest that inversely correlates with the market, is termed as a bear CD.

Bear Hug

If there exists a doubt that a target company's management will not agree to sell its shares, bear hugs are used to make the sales lucrative. Bear hugs are when an offer is made to buy the shares of a company at a rate much higher than the market valuation.

Bear Raid

Bear raids are illegal attempts of pushing down the prices of a target security, either by making large short sales or by spreading unfavorable market rumors about it.

Bear Trap

When there is a false market signal of a rising stock or index and the downward trend hasn't actually revered, it is termed as a bear trap.

Bearer Share

Any equity certificate that is totally owned by the person holding it in physical form, is known as a bearer share.

Beating the Gun

Beating the gun is a phrase given to individuals who have the knack of market timing and the ability to react before others. When a beneficial transaction is executed on the basis of information that the market is yet to react to, it is termed as 'beating the gun'.

Below the Market

A transaction to buy or sell a security at a price lower than the going market price, is called a 'below the market' transaction.

Best Ask and Best Bid

The lowest quoted ask price and the highest quoted bid rate in a competitive market are termed as best ask and best bid rates respectively.


The offer price made for buying a security is its bid rate or price.

Bid Size

Bid size is the number of shares that are in demand at the quoted bid price.

Bid Tick

is the market about to crash bid tick tells a bidder whether his current bid is higher, lower or in line with the previous bids.

Bid-Ask Spread

This is the difference between the ask price and the bid price.

Big Bang

The day the London Stock Exchange (LSE) was deregulated into a private limited company (27th October 1986), is known in investment history as the Big Bang.

Big Bath

When the income statements are manipulated to make a poor performance look worse, to gain an artificial cushion for the next financial year, the act is termed as a big bath.

Big Uglies

These are unpopular stocks that belong to industries like mining, oil and steel.

Blind Brokering

Blind brokering helps in maintaining an anonymity between the buyer and the seller of a security.


A bearish sign for technical analysts, a blowoff is a sharp price increase after a long appreciation period. It is usually followed with a price fall.

Blue Collar Trader

This is a trader who has other sources of income and does not need the trader job as a means to survival. It is more like a bonus or a savings plan.

Blue Sheets

When requests are sent to market makers, to supply certain information to the Securities and Exchange Commission, they are known as blue sheet.

Blue-Chip Stock

These are stocks of financially strong companies who are tried and tested through their ability to pay dividends during both, the good and the bad times.

Boston Snow Indicator

This is a genuine market theory that says, a white Christmas in Boston indicates rising stock prices in the next year.


Any European stock exchange can be termed as a bourse but the term is most often used in reference to Paris Stock Exchange.


When no fundamental analysis backs a massive surge in the equity prices of a sector, it is termed as a bubble. For Information about public stock companies is the place to be to have an overview of the info you're searching for.The bubble usually bursts sooner or later, with a drastic price drop when sell off pressures increases.

Buy and Hold

This is a long term, passive strategy, where the trader buys stock and holds it over a certain period of time regardless of short term price movements.

Buy Break

When a stock makes a movement above a certain resistance, it is called a buy break and is a buy signal. Upwards momentum most often follows a buy break.

Buy, Strip and Flip

In a buy, strip and flip strategy, purchased target firms are held for a very short period of time before being let off through an IPO.

Stock Market TerminologyStock Market DefinitionsCabinet Security

A stock that is not actively traded despite being listed on a major financial exchange.

Call Price

Price at which a preferred stock or a bond can be redeemed by the issuer.

Call Warrant

Certificate issued along with a preferred stock that entitles the shareholder to buy the underlying share for an agreed upon price on or before the specified date.

Callable Common Stock

Shares issued for a subsidiary company by the parent company wherein the latter reserves the right to redeem the issued shares at a pre-determined price on or after a specified date.

Clientele Effect

Changes in investors' stock holdings on account of perceived positive or negative effects of changes in company policy.

Close Position

Going short in a security if long, and vice versa.

Closing Tick

The difference between the number of stocks that closed higher than their previous trade and those that closed lower.


An options strategy that is implemented by purchasing an out-of-the-money put option and simultaneously writing an out-of-the-money call option once a long stock position has proved profitable.

Commodity ETF

A fund that tracks an index but is traded like a stock and invests in physical commodities, viz. agricultural goods, natural resources and precious metals.

Common Shareholder

An entity that has an ownership stake in a company in lieu of common shareholdings.

Common Stock

Securities that grant voting rights and participation rights in a company's success through dividends and capital appreciation.

Composite Index

Grouping of equities using techniques, viz. price weighted and value weighted or unweighted, to arrive at a basket of securities that is representative of the overall market or sector.

Control Stock

Significant portion of the outstanding shares of a company owned by an entity allowing the latter to exercise controlling influence on the former.

Conversion Arbitrage

A risk neutral proposition which involves buying a put option and writing a covered call.

Conversion Price

The price at which a convertible preferred stock can be exchanged for common stocks.


An individual or an institutional investor who has bad luck with equities and tends to transfer the same to other buyers.

Core Liquidity Providers

Market makers or underwriters who have significant security holdings and are thus able to provide the much desired liquidity.

Counter-Cyclical Stock

Stocks that have a negative correlation with the business cycle or the general state of the economy.

Covered Call

Having a long position in a stock and writing a call option on the same, with the expectation of the price of the security remaining flat or falling in the near term.

Covered Warrant

A certificate issued along with a preferred stock that allows the holder of the security to buy or sell a specified amount of common equity or other financial instruments at a specific price and time.

Cowboy Marketing

A situation wherein, a stock is promoted by unethical means without the knowledge of the issuer.

Cum Dividend

Stocks trade cum dividend when dividend has been declared but not paid.

Cum Rights

Stocks that are trading cum rights can be sold by the shareholder to others with rights attached.

Current Yield

The ratio between the dividend income and the current price of a security is known as current yield.

Cyclical Stock

A stock that moves in tandem with the economy or one whose price exhibits a positive correlation with the business cycle.

Stock Market TerminologyStock Market DefinitionsDaisy Chain

Daisy chain means when a group of fraudulent traders carrying out some kind of counterfeit trade superficially, inflate the price of a particular security, so that it gets sold at a good profit.

Dark Pool Liquidity

It is a slang term which means the volume of trade which is not available to the public and is created for institutional orders. It is called Dark Pool Liquidity because the details of the trade are hidden or concealed from the public. The block trades represent the bulk of dark pool liquidity which is expedited away from the central exchanges.


It is a stock index that represents 30 German companies which trade on the Frankfurt Exchange and are amongst the largest and the most liquid German companies. The prices which are used to calculate the DAX Index come from tan electronic trading system called Xetra. Index weightings with a measure of average trading volume are calculated by using the free- floating method.

Day-Around Order

This term is mainly by traders in the general equities market. Day-Around Order means an order which cancels and replaces the order placed on the previous day with altered price limit or volume. When the day order is placed the day around order will get canceled at the end of the business day.

Dead Money

It is a slang term used for money invested in a security with negligible aspiration of returns or profit.

Deal Ticket

A deal ticket is also known as "trading ticket" which is created after the dealing of shares, derivatives or futures contracts. It contains all the terms, conditions and fundamental information of the trade agreement.

Debt Load

Debt load refers to the amount of debt the company is carrying which is recorded in the books of the company. You can find the company's debt in the balance sheet of the company which is produced on a quarterly basis.


Decimalization is the procedure of changing the prices from fractions to decimals, on which the securities trade.


Decline means when the price of a security falls down in value on a particular trading day and consequently closes at a value lower than its opening price.

Defensive Buy

Defensive buy is an attractive buy due to the lower amount of risks attached to it and not because of high returns or profits.

Defensive Company

Defensive company is a company whose sales and earnings remain stable during economic rising and economic downfall.

Deferred Share

Deferred share means a share which does not hold any rights on the assets of the company if going bankrupt until the preferred and the common shareholders are paid. These shares are mostly issued to the founders of the company and confines the right to receive dividends until the other shareholders are paid.

Delaware Corporation

Delaware Corporation means a corporation that can conduct its business in any state but has to be legally registered in the state of Delaware.


Deleted refers to a security that is no longer included on a particular or a specified market. It is also known as "delisting".


Delisting means removing the security trading on the exchange because the company for which the stock is issued, whether voluntarily or involuntarily, is not in accordance with the listing requirements of the exchange.

Depository Receipt

Depository receipt is a negotiable financial instrument which is issued by the bank depicting a foreign company's publicly traded securities. The depositary receipt dealing is done on a local stock exchange.

Designated Order Turnaround - DOT (SuperDOT)

Designated Order Turnaround - DOT (SuperDOT) is an electronic trading system which increases the efficiency and performance of the order by routing it directly to the experts on the trading floor rather than a broker.

Desk Trader

Desk trader means a trader who is confined or restricted to carry on trade with a firm's clients and is unable to carry out transactions with his/her own firm's accounts.

Direct Repurchase

Direct repurchase means when a company buys or repurchases its shares from the market, reducing the number of outstanding shares.

Dirty Stock

Dirty stock means a stock that is not given a good delivery status due to missing or wrong endorsements or documentation transfer. Dirty stock will mostly intrude the transaction procedure.

Stock Market TerminologyStock Market DefinitionsEarly Exercise

American style options allow the option or other securities to be exercised prior to its maturity date. This process is known as early exercise.


This is a provision included in a contract stating that the seller of a business will gain additional future compensation based on the business achieving certain financial goals in the future.

Eat Your Own Dog Food

This term describes a self-sustaining activity of a company wherein the company uses its own products to carry out its own daily operations.

Earning Before Tax (EBT)

It is an indicator of the financial performance of a company. It is calculated as: EBT = Revenue - Expenses (excluding tax).

Effective Tax Rate

It refers to the rate of tax that a taxpayer would be charged, if taxing was carried out at a constant rate instead of at a progressive rate.

Election Period

It is the time frame in which an investor can choose to extend or shorten his maturity date on an extendable or retractable bond.

Equity Linked Note (ELN)

This is a financial instrument whose rate of return depends on or is determined by the performance of a single equity security, a collection of equity securities or an equity index.

Employee Contribution Plan

It is a type of retirement plan that is sponsored by a company and requires the employees to make contributions to the fund. These contributions are deducted from his salary and employers also make an equal contribution to the fund.


Also known as a lien, an encumbrance is a claim against a property. The transferability of the property is affected as a result.

Earnings Per Share (EPS)

This is a share of the company's profit that goes towards the owner of each share of the company. It is an accurate indicator of the company's profitability. It is calculated as: EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares.


It refers to a vast amount of things related to a company's finances. Equity can broadly refer to any item owned by a party that has no outstanding debts accrued against it.

Equity Income

Any investment in stocks (equity) will earn income in the form of dividends. This income is known as equity income.

Erasure Guarantee

Any changes being made to bonds and securities must be witnessed by an accredited financial institution to ensure legitimacy. The institution then provides what is known as erasure guarantee.


It refers to the transfer of an individual's estate or property to the Government in the event of his death, in case there is no written will or a predetermined heir to the estate.

Escrow Receipt

It is a guarantee issued by a bank stating that the security or deposit of an option writer actually exists, and if the option is exercised the aforementioned security or deposit will be readily available.


The Ethiopian Birr, the official currency of Ethiopia.


The currency code for the Euro. It is the currency commonly used in about 21 of the 27 countries that comprise the European Union (EU).

Euro InterBank Offer Rate (EURIBOR)

Within the EU InterBank market, the rate at which panel banks can borrow funds from other panel banks is the EURIBOR.


A type of loan in which the lending bank extends the loan in a currency other than their own national currency.

Euroyen Bond

It refers to a eurobond which is denominated in Japanese Yen and are issued outside Japan by a non-Japanese company.

Enterprise Value (EV)

Sometimes, instead of considering market capitalization, a company's value can be measured using EV. It is calculated as: Market Capitalization + (Debt + Minority Interest + Preferred Shares) - (Total Cash and Cash Equivalents).


These are the municipal bonds that get delivered without a legal endorsement from a reputed bond law firm.

Exchange Distribution

It is a form of trade that occurs on a securities exchange floor in which many transactions are pooled together and are recorded as one single transaction.

Exclusion Ratio

It is that part of the return on investments (ROI) that is exempt from the income tax. Instead of capital gains, it represents the repayment of capital gains.

Exit Strategy

An exit strategy is a plan made by an investor to get out of an investment made by him. It is also known as a "harvest strategy" or a "liquidity event", and is a way of cashing out an investment.

Extendable Bond

This is a bond whose maturity period can be extended at the discretion of the issuer.

Extrinsic Value

The difference between the price of an option and its intrinsic value.

Stock Market TerminologyStock Market DefinitionsFair Weather Fund

This is a mutual fund that will perform extremely well when the market is high, but will perform very poorly when the market is down. These funds are generally very active in bullish market conditions.

Fairway Bond

This is a bond which will accrue interest when the embedded index or interest-rate option underlying the bond remains within a specified range. It is also known as corridor bond or index floater.

Family of Funds

When one investment company or fund company offers a group of mutual funds, it is known as a family of funds or simply a fund family.

Free Asset Ratio (FAR)

This is the market value of the assets of an insurance company which are over and above its policy liabilities.

Fast Market

When there is a great imbalance of trades in the market (especially if the number of sells greatly outnumber the number of buys) it results in a fast market that is highly volatile and sees heavy trading.

Fast Tape

A fast tape gives a range of prices instead of one steady price due to the fast movement of the futures market, which happens as a result of a large number of transactions.


This term implies the hiring of more workers than are necessary to complete a certain task, due to the pressure by the labor unions.

Feeder Fund

This is a fund whose investing is carried out through another fund (known as the master fund).

Fifty Percent Principle

This principle predicts that prior to the present trend continuing forward in the market, there will occur a price correction of around 1/2 or 2/3 of the change in price.

Fighting the Tape

Any action that goes against the ticker tape. If the market is falling and a person is continuously buying, he is said to be fighting the tape.


It is the basic task of fulfilling or completing an order for any security or commodity.

Fill or Kill (FOK)

This is an order placed for a very large amount of stock and it must be fulfilled either immediately or not at all.

Final Prospectus

This is the absolute final version of a prospectus that is offering securities to the general public. It is also known as statutory prospectus.

Financial Asset

Financial assets have value due to contractual claims. Stocks, shares, bonds and bank deposits are some financial assets.

Financial Risk

The risk that a company will be unable to meet its financial obligations. Companies dealing in debt instruments have a higher financial risk than companies dealing mostly in equity.


Any activity of a financial institution or a bank that results in providing funds for investing or making purchases is financing.

Fire Sale

This refers to a situation in the market where the prices are very low. This is considered a very good time to buy.

Firm Quote

This is the price quote on a security (by a dealer or a market maker) that allows a bid up till the amount of the firm quote. There is no negotiation here unlike in the case of a nominal quote.

Fixed Annuity

This is an insurance contract wherein the insurance company makes fixed payments to the annuitant for the duration of the contract. The insurance company provides capital as well as earnings to the annuitant.

Fixed Interest Rate

A rate of interest that is fixed (not changing), for the entire duration of the loan or the mortgage.


The abbreviation for the Fijian dollar, which is the currency of the Republic of the Fiji Islands.


The abbreviation for the official currency of the Falkland Islands, the Falkland Islands Pound.

Flat Tax

A system in which every person is charged the same amount of tax, irrespective of their bracket of income.

Flexible Exchange Option (FLEX)

When a clearing house writes online trading academy articles option whose strike price, expiration date and exercising style can be modified.

Floating Interest Rate

Unlike fixed interest rate, floating interest rate is flexible and can rise or fall depending upon the market conditions.

Fortune 500

Using the latest financial figures and revenue numbers, a list of 500 of the largest companies in the United States is drawn, on an annual basis.

Stock Market TerminologyStock Market DefinitionsGadfly

A gadfly is a term used for a person who attends shareholders meetings just to ask difficult and embarrassing questions and criticize the company management.

Gap Risk

Gap risk is the exposure to adverse price movements external of trading factors, like price movements because of adverse news announcements.

Gather In The Stops

This is a stock trading strategy aimed at triggering stop loss orders by selling large amounts of stocks and bringing the company's stock price down.

Gazelle Company

A company that increases its sales revenue at a growth rate of 20 percent or more is called a gazelle company.


Ghosting is an illegal practice wherein corrupt market makers make colluded trades to affect a change in the market price of a stock.

Glide Path

The glide path is a formula for conservative asset allocations for a target date fund and is based on the number of years left to the target date.

Global Depository Receipt (GDR)

This is a financial instrument used to raise funds in US dollars or Euros. It is issued in more than one country, for shares in a foreign company.

Godfather Offer

A takeover offer made on very generous terms and prices, thus making it irrefutable for the target company.

Goldbrick Shares

A stock conferring to the age-old adage, 'all that glitters is not gold', for though it appears of quality and worth, is in fact not so.

Golden Cross

This signifies a stock crossover by breaking the resistance level i.e. when the stock's short term moving average breaks above its long term moving average.

Gray List

This is a list of stocks that cannot be traded in by a bank's risk arbitrage division, on account of the fact that these are working with the bank on matters of mergers and acquisitions.

Gray Market

This is an unofficial market that trades in newly issued shares, that are yet to be officially available on the stock exchanges.

Great Depression

The Great Depression is a decade long economic recession, that began on 29th October 1929 and caused worldwide poverty, hunger, unemployment, and political unrest.

Greater Fool Theory

This is a stock market theory that states that there will always be a bigger or greater fool out there willing to buy a security at a higher price from you in the future, even if you've bought the security today not knowing whether it is overvalued or undervalued. The point of this theory is that no matter how high your stock buying price is, you'll always get someone to sell it to, at an even higher rate, giving you a profit.

Green Investing

When investment activities focus on green objectives, like natural energy conservation, alternative energy source discoveries, clean water and air technologies and other environmentally oriented businesses, the investment process is termed as green investing.

Green Tech

Green tech is the term used to denote a large company that utilizes an environmentally friendly production process and supply chain.


When a large block of a company's stock is held by a threatening company and needs to be brought back by the company at very high premiums to avoid a takeover, the stock repurchase is called greenmail.

Gross Spread

This is the difference between the received underwriting price and the actual publicly offered price for an issuing company.

Growth Stock

Also known as glamor stocks, these stocks are the stocks of the company that is growing at a rate significantly higher than the market growth rate.

Gun Jumping

Jumping the gun is an illegal practice that involves the execution of share buying orders before the IPO has been approved by the Securities and Exchange Commission (SEC).


These are portfolio managers who are so highly focused on earning high returns that they become foolhardy and invest in very high risk stocks.

Stock Market TerminologyStock Market DefinitionsH-Shares

These are the shares listed on the Hong Kong Stock Exchange and that come under the purview of the Chinese Law. These are denominated in Hong Kong dollars and are traded in the same way as other equities.

Half Stock

This is either a common stock or a preferred stock that is denominated at a par value of $50.


A stock is said to be getting a hammering if investors and speculators indulge in a rapid and concentrated sale of it, thinking that it is overinflated in the market.

Hanging Man

This is a candlestick pattern at the end of an uptrend that signifies a bearish market sentiment.

Hard-Coded Stock

This is a company's unique stock symbol or ticker symbol that allows the investors to check up on its share price, anywhere on the globe.

Headline Effect

Whether justified or not, this is the effect of a negative news headline on the company's stock or even the economy as a whole.

Heavy Industry

Industries with the typical characteristics of high initial investments (capital), high entry barriers and low transportability are termed as heavy industries.

Hedged Tender

A tender offer wherein an investor short sells his shares to hedge the risk of the tender not going through, is termed as a hedged tender.

Held at the Opening

A halt or restriction to trading a particular stock when the stock exchange opens, to protect investors, is termed as held at the opening.

Held Order

A market order that requires prompt executions to fill an immediate request, is termed as a held order.


This is an aberration to a larger trend or a short term disruption within a longer term plan or goal.

High-Frequency Trading - HFT

High frequency trading involves the use of powerful computers to transact and execute a large number of orders at very high speeds.

Himalayan Option

This is a mountain range option that is based on a basket of securities, unlike a plain vanilla option that has just one underlying security.

Historical Volatility - HV

Also known as statistical volatility, this is the market realized volatility of a financial instrument over a given period of time. Standard deviation is usually used to calculate the historical volatility of a security.

Hit the Bid

This phrase is used when a broker agrees to sell a security at the highest price at which another broker is willing to buy it for.

Holding the Market

There are two meanings to this term. This phrase is used to refer to a practice of placing pending orders on a security to keep holding a steady price for it in the market. Another way to use this phrase is to refer to a person holding a general market index portfolio.


Oversubscribed IPOs that are in hot demand with investors are called hot IPOs.

House Call

Also called a 'margin call', this is an intimation to a customer that his margin account balance has fallen below the maintenance requirement level.

Hybrid Market

This is a blend of both, an automated electronic trading market and a traditional floor broker system.

Stock Market TerminologyStock Market DefinitionsImbalance Of Orders

Also known as an order imbalance, this is a term used when one sided orders are received, i.e. a lot of demand, no sales and vice versa. There may be many buy, sell or limit orders on a listed stock but nothing matching that particular order on the stock exchange.

Impact Day

When a firm makes a secondary offering of shares to the public, that usually results in a downward price movement due to excess supply, it is termed as the impact day.

In Street Name

When a brokerage account holds securities in the name of the brokerage firm and not in the name of the actual investor who's bought the security, it is said that the asset has been bought in street name.

Income Deposit Security - IDS

This is a security that provides regular income to the security holder, by combining common stock with the issuer's notes.

Income Stock

Income stocks are equity securities that pay off steadily increasing dividends and offer high yield to security holders.

Index Divisor

This is number with no mathematical rationale, is consistent and is used to compare items within the index, over a period of time.

Index Hugger

Also known as closet tracker or pseudo tracker, an index hugger is a managed mutual fund that matches its performance with the benchmarked index.

Indicated Yield

This is a rough forecasting technique, quoted as a percentage, calculated by dividing the indicated dividend of the company with its current share price.

Industry Life Cycle

This is a theoretical explanation of the stages an industry goes through, from the time it comes up with its first product, to the time of its eventual decline.

Initial Margin

Also called 'the initial margin requirement', this is a security's purchase price percentage that the investor must pay for with his own cash or marginal securities.

Inside Quote

Also known as the inside spread, this is the highest possible bid price and the lowest possible offer price (ask price) for a particular security among all the market makers.

Insider Trading

When someone who is trading has access to insider information, i.e. information that is material and is not available to the public at large, he is said to be indulging in the illegal activity of profiting through insider trading.

Interest Sensitive Stock

Any stock of a company that has a high debt load and is sensitive to interest rate changes, such a stock is known as an interest sensitive stock.

Intraday Intensity Index

This is a volume based indicator that depicts the daily flow of funds for a security. It uses the high and low range of the security and aims to track the activity of institutional block owners.

Investing Sage

Like Warren Buffet, these are investors that are extremely knowledgeable and are known to consistently beat the market and make abnormal returns through good stock research.

Stock Market TerminologyStock Market DefinitionsLaggard

This is an underperforming stock or security, for it gives out lower than average returns, unlike the leader.

Large Cap - Big Cap

When a company has a market capitalization of more than $10 billion, the company is termed as large cap; cap is short for market capitalization.

Law of Large Numbers

This is a statistical claim that suggests that as the sample numbers increase, the average is the samples tends towards the mean of the whole population. This means that when a company grows, the possibility of it sustaining a large percentage in growth lessens.


This is an accounting term, used to classify the leased assets (operating lease not capital lease) of a company on its balance sheet.

Legacy Hedge

This is a hedge that provides price guarantees, as the hedge position is held over an extended period of time by the holding company.

Letter of Comment

This is a letter, sent to a company by SEC, in response to the company's filing registration statement.

Leverage Ratios

These are the ratios used to get a glimpse into the company's financial leverage, its methods of financing and the future ability to meet financial obligations.

Leverage ETF

This is an ETF that attempts to amplify the returns on an index by using financial derivatives and debt instruments.

Limit Order

Buy limit orders and sell limit orders are limit orders placed with a brokerage to buy or sell a set number of shares at the predetermined price or more, respectively. The order time limit is also specified, after which they get canceled.

Limit-on-Close Order

Unlike a limit on open order, a limit on close order is a limit order to buy or sell a security at a market close, if it is trading better than the limit price.


Linkages happen when an investor can buy a security on one financial exchange and sell it on another, but differs from arbitrage.

Liquidating Dividend

When a firm makes payments to its owners, from capital rather than from earnings, it is known as liquidating dividend.

Liquidity Premium

This is the premium that investors demand for an illiquid asset, that cannot be easily converted to cash without taking a big price fall.

Listing Requirements

These are stock exchange standards that need to be met by the company looking to get a listing.


This is a period of time when an employee of a public limited company is barred from buying or selling his company's stock for a particular period of time.

Long Squeeze

As opposed to a short squeeze, a long squeeze is the selling pressure that builds up on long holders of the stock when a sudden price drop incites further sales and price drops.

Low Volume Pullback

A technical correction of the stock price that signifies that the trend is not actually reversing but is just weak due to low trading volumes.

Stock Market TerminologyStock Market DefinitionsMacro Hedge

This is an investment strategy that is used to eliminate or lessen the risk of an entire portfolio, i.e. it advocates a position that offsets the entire portfolio.

Mad Hatter

This term refers to a CEO or company head or even a whole managerial team that has suspect abilities to lead a company.

Maintenance Margin

Also referred to as 'minimum maintenance' or 'maintenance requirement', this is the minimum equity amount that has to be compulsorily maintained in a margin account.

Management Buy-In (MBI)

A management buy-in entails an outsider company or team purchasing ownership stake in an undervalued (due to management incompetence) company and replacing the entire management team with efficient and capable managers of their own.

Manufactured Payment

This is a payment made by the borrower of a stock to a lender of a stock, equivalent to the dividend payment declared on the stock.

Market Basket

A market basket is the clubbing together of products and securities in such a way that they replicate the market performance and can be used to track things such as inflation, prices and performance levels.

Market Capitalization Rule

This is a standard value rule set by the NYSE in 2004, that stated that companies must maintain a minimum value of $25 million over 30 consecutive days to continue their listing with the stock exchange.

Market is Up

This is the opposite of 'market is down' or 'market is off' and is a common phrase used to denote a market segment or index that is trading higher than the previous close.

Market Overhang

This is an observational trend that shows high selling pressures in the market and can last for weeks, months or even longer. It is usually triggered by institutional investors holding large share blocks that wish to divest.

Market Swoon

A negative investor market sentiment that triggers a general decline in the overall value of the stock market is called a market swoon. The first signs of a market swoon come in the form of significant price drops in indexes such as the DJIA (Dow Jones Industrial Average).

Market-With-Protection Order

If there is a heavy price movement in an asset after an investor places his order, he can cancel his order and re-submit it as a limit order, placed around the current market price. This protective measure is termed as a 'market with protection order'.

Marlboro Friday

This is a term coined for the Friday of April 2nd 1993, when Philip Morris (maker of Marlboro cigarettes) caused a $10 billion market cap loss in a single day, by making an announcement to cut product prices so that it could compete with generic cigarettes.

Mean Return

Also known as expected return in security analysis, this is the expected value or mean return of all the individual investments in a portfolio. In capital budgeting terminology, mean return stands for the mean value of the probability distribution of possible returns.

Member Short-Sales Ratio

This is a measure to gauge the sentiment of market professionals by segregating the 'pro' trades from the noise trades of less informed public traders. This ratio compares the number of short sales made by NYSE members with the total number of short sales transacted on the exchange.

Merger Deficit

When a company uses funds raised through new stock issues to purchase the stock of another company, due to which the total share capital value used to purchase another company is less than the total value of equity bought, there is said to be a merger deficit.

Merger of Equals

When two equal sized firms merge together to form a single company, with both side's shareholders surrendering their shares and receiving newly issued securities of the newly formed firm in return, it is called a merger of equals.

Mergers and Acquisitions

Mergers and acquisitions, M&As, is a general term used to refer to the consolidation of two companies to form one company.

Micro Hedge

An investment technique that entails taking an offsetting position to eliminate the risk of a single asset is called a micro hedge.

Minority Interest

When any investor or company holds a less than 50 percent, significant but non-controlling interest in a company, he said to be holding a minority interest in the company.

Minsky Moment

After a long-lasting period of market speculation, when a market fails or falls, the phenomenon is termed as a Minsky moment.

Misappropriation Theory

This is a type of insider trading wherein confidential information is stolen from an employer and trading is done based on the 'misappropriated insider knowledge'.


This is a term used for a business that picks one line and focuses in only that one specific financial area.

Mosaic Theory

Mosaic theory is an analytical method that security analysts use to gather information about a company.

Multiples Approach

This is a theory that states that a firm's valuation can be done based on another, if the two firms are comparable. It is based on the premise that similar assets should sell at similar prices.

Stock Market TerminologyStock Market DefinitionsNaked Option

Naked options (naked put or naked call) are option positions held by a buyer or seller, without holding the underlying security.

Naked Position

As opposed to a covered position, a naked position (naked long or naked short) is an unhedged security position, i.e. a position uncovered from market risk.

Nano Cap

Even smaller than a micro cap, a nano cap is a small company with a less than $50 million market capitalization.

Narrow Moat

An economic moat opposite of a wide moat, a narrow moat represents a slight competitive advantage that a firm enjoys over other competing firms in the same industry.

Nasdaq Composite Index

A weighted index of more than 3000 common equities trading on the Nasdaq stock exchange, that uses market capitalization as weights, is called the Nasdaq composite index.

Near Term - NT

Another term for short term, this is used to recommend stocks that need to be held for short periods.

Negative Carry

This is a situation, opposite of positive carry, that arises when the cost of financing a security or futures position, far exceeds the yield earned from it.

Negative Obligation

The opposite of affirmative obligation, a negative obligation is when NYSE specialists who are supposed to play market makers, stay on the sidelines and refrain from acting as principal when there is less market demand or supply, to match pending orders.

Neglected Firm Effect

This is the phenomenon of abnormally high returns on stocks that are relatively less known, due to higher risks and lower liquidity.

Net Interest Margin Securities - NIMS

These are securities that allow holders to access the cash flows that result from securitized mortgage loan pools.

Net Long

Opposite of a net short position, a net long position entails an investor having more long positions than short positions in the market or his portfolio.

Net Volume

This is a security's uptick volume minus its downtick volume over a period of time and is measured by the 'money flow index'.


This is a value investing technique introduced by Benjamin Graham which uses only the net current assets to value a company.


This represents a security that is tradeable despite having incurred no original cost to the seller.

No-Par Value Stock

This is an issued stock that has no par value specification, neither in the company's articles of incorporation, nor on the stock certificate itself.

NYSE Composite Index

This is a good indicator of general market strength for it incorporates all common stocks listed on the NYSE and the four subgroup indices, namely industrial, transportation, utility and finance in its calculation.

Stock Market TerminologyStock Market DefinitionsOff Board

This is a stock trade that either does not involve a stock that's traded on a major stock exchange (over-the-counter stock) or involves a stock that's listed on a major exchange but is still traded over-the-counter between two institutions or an institution and its customer.


This category of exchange traded funds invest in oil and gas companies.

One To Many

A one-to-many platform is a trading platform where many buyers and sellers interact with only one, sole market operator.

One-Cancel-All Order

When several limit orders are placed on one company stock with the caveat that all others get canceled when one gets filled, is called a one-cancel-all order.

One-Way Market

This is a common slang used for a market that is only moving in one direction with strength and little or no resistance.

Operating Netback

This is a non-GAAP measure of oil and gas sales, net of royalties, production and transportation expenses.

Opt-Out Vote

This is a shareholder vote taken to decide on whether certain takeover laws and regulations need to be waived to suit a particular favorable corporate action.

Option Premium

This is either the current price of an option that is yet to expire or is the income received by an option writer or seller, for selling an option contract to another party.

Oracle of Omaha

This is a nickname earned by the great investor Warren Buffet, for his market beating stock picks, investment strategies and asset management fundas.

Order Protection Rule

Also known as the 'R 611' rule or the 'trade-through rule', the order protection rule is a regulation NMS provision that states that investors receive an execution price that's equivalent to the prices quoted for the security on the other exchanges.

Order Splitting

The Small Order Execution System (SOES) qualifies orders to be automatically executed. Order splitting involves splitting off larger orders into smaller ones that fit in with the SOES.

Over-The-Counter Bulletin Board OTCBB

This is an electronic trading service that is offered and regulated by NASD (National Association of Securities Dealers), that shows real time quotations, last-sale prices and volume information over the counter. OTCBB traded stocks have the 'OB' suffix.


This is a technical analysis term, opposite to oversold, that is used for an asset that has unjustifiably high prices that are driven by excessive demand and not by the company fundamentals.


This is a market hypothesis that's inconsistent with the efficient market hypothesis, for it states that investors and traders may react disproportionately to new information on a security.


Contrary to being undersubscribed, the term oversubscribed applies to a situation where the public demand for an IPO far exceeds the actual number of shares issued.

Oversubscription Privilege

This is a special right or privilege conferred on existing shareholders when the company makes a rights or warrants offering.


This is a market condition where there's excessive upward pressure on Treasury yields due to the market being considerably overbought, overly bullish and overvalued.

Stock Market TerminologyStock Market DefinitionsP/E 10 Ratio

A price earnings ratio is a company valuation http://www.binaryoptions.pm/ ratio that is calculated by dividing a company's market value per share by the company's earnings per share. P/E 10 signifies that a company's stock is trading at 10 times the value of the company's earnings per share.

Pac-Man Defense

This is a defensive tactic against hostile takeovers that has the targeted firm turning around and trying to acquire the company that is attempting the hostile takeover.

Painting the Tape

This is an illegal action taken by market manipulators to cause a price movement that is favorable to their positions and gains them hefty profits.

Paired Shares

Also known as Siamese shares, these are stocks of two different companies, often having the same management that are sold as one unit and appear on one certificate.

Paper Millionaire

An individual who has large amounts of paper profits because his portfolio of marketable assets has suddenly been bid up to really high prices.

Parity Price

Also referred to as conversion parity price or market conversion price, a parity price is a asset price that's directly linked to another price.

Pass-Through Certificate

These are fixed income securities based on the undivided interest pool of federally insured mortgages, that are put together by the Government National Mortgage Association (Ginnie Mae).

Pathfinder Prospectus

This is a pre-prospectus statement giving a picture of the company's financial condition, supplied to a limited group of potential underwriters and institutional investors to test the waters before an IPO filing.

Payment for Order Flow

This is the compensation or payments received by a brokerage firm for directing the orders to different parties, for execution.

Peer Perform

A peer perform is a neutral assessment indicator that predicts that a security will move in line with the securities of other similar companies.

Penny Stock

A penny stock is a stock with low market capitalization and low price, that is usually traded outside the major stock exchanges.

Performance Drag

If transaction costs negatively influence the performance of an investment, the phenomena is called a performance drag.

Piggyback Warrants

These are additional warrants that can be acquired with the exercise of primary warrants and act as sweeteners to prompt additional investment in the company.

Pink Sheets

This is a daily publication that gives details on OTC stocks (like bid ask prices, market makers, etc.) and is compiled by the National Quotation Bureau. Initially printed on pink paper, and hence the name, pink sheet listings end with the suffix 'PK'.


This is a sales book compiled by an investment bank or firm, with the intention of selling its products and issues and generating new clients by giving them the details of its main attributes.

Plus Tick

Also known as an 'uptick', a plus tick is a designation given to a stock that is trading higher now as compared to its previous sale.

Poison Pill

This is a hostile takeover discouragement strategy. The two types of poison pills are: flip-in: allows existing shareholders to buy shares at discount thus making acquirer's share weaker through capital dilution, and flip-over: allows existing shareholders to buy acquirer's shares at discounted prices post the merger.

Pot is Clean

Also known as 'fully subscribed', this is a slang for an underwriter that has managed to offload all of its available issues of a public offering.

Power Ratio

This measures a media company's revenue performance in comparison to its audience share.

Price Continuity

This is a liquid market characteristic that suggests that the price movements between transactions are minimal.

Price Talk

This is a discussion within the investment community regarding the appropriate price suitable for an upcoming security issue.

Pricing Power

This is a term used in conjunction with media big data price elasticity of demand and suggests the effect on the product quantity demanded with a company making a change in the product price.

Profit Warning

A profit warning is a company's intimation that its profits are not likely to meet the expectations of analysts.


This is a brief reversal (fall in price) in a prevailing upward trend or peak which is just a slight pause in upward momentum and not a cause of concern.

Pure Play

This term symbolizes a company who is only in one line of business and its stock price is highly correlated with the outcomes of one investing theme or strategy.

Put Warrant

It is just a warrant (as opposed to an option) that gives the holder the right to sell an underlying share at an agreed price, on or before a predetermined date.

Puttable Common Stock

This is a common stock that gives its holders the right to sell it back to the company at a predetermined price.

Stock Market TerminologyStock Market DefinitionsSaitori

This is a Tokyo Stock Exchange member that facilitates trading by matching buy and sell orders.

Santa Claus Rally

This is a stock price surge seen between Christmas and New Years.

Scale In

Opposite of scale out, scale in is the process of shares being purchased as the share prices fall.

Scale Order

These are a bunch of several limit orders that follow an increasing or decreasing price range.


This is a trading strategy that attempts to profit from small price changes.


Written documents that acknowledge the existence of debt are known as scrips.

Sector Analysis

This is a study or review of the future prospects of a particular market segment or sector.

Securities Fraud

This is a serious crime where vital investor information is misrepresented.

Seed Capital

This is a financial term used for the initial capital that is required to start up a business.

Sell to Close

As opposed to a sell to open, this phrase is used to represent sales that are made to close long positions in option transactions.

Shareholder Activist

This is a term used for a shareholder who is using his shareholder rights to bring about a social change in an organization.

Shark Repellent

Also known as a porcupine provision, this is a common term that refers to any measures that a company takes to avoid hostile takeovers.


An investor who is prone to rash, emotional decisions as he lacks a proper trading strategy, is known as a sheep in financial lingo.

Short Squeeze

This is a situations where stock prices are pushed upwards due to lack of supply and very high demand.

Short-Swing Profit Rule

This is an SEC regulation that makes it mandatory for insiders to return any trading profits they make on the company's stock if two or online advertising transactions happen within a 6 month time span.

Single-Digit Midget

This is a stock with the stock price of below $10 per share.

Small Firm Effect

This is a financial theory that predicts the small firms (with smaller market caps) to outperform the larger firms because of greater growth opportunities.

SOES Bandits

These are traders that aim for small profit through rapid buy and sell transaction routed through the SOES system.

South Sea Bubble

This is a UK based company driven stock scam that can be claimed as the largest in history with thousands losing their entire life savings.

Speculative Stock

When a stock has higher relative risk than others, it is known as a speculative stock.


This is a type of corporate restructuring wherein a subsidiary's stock is exchanged for stock of the parent company.


This is a financial slang that denotes a S&P500 contract that is trading on the CME (Chicago Mercantile Exchange).

Stated Value

A value that has no relation with the stock's market price and is neither in line with the par value, but is still taken as a par value for accounting purposes, is called the stated value.

Stock Cycle

The stock cycle is a buy and sell cycle seen in a stock's price, over a several year's period.

Stock Screener

This is a financial tool that can help investors to screen stocks based on criteria that they require.

Stock Watcher

This is an NYSE run computer program that monitors daily trading activities on the stock exchange, in order to locate any illegal trades.

Stock-Limit Order

This is a combination order that combines a stop order with a limit order.

Story Stock

This is stock that has a stock value that projects its future potential rather than any current fundamentals backing it.


This is a stockholder that holds a stock that cannot be sold anymore (has no buyer or the price is so low that the holder does not wish to sell and has nothing to lose by holding rather than selling at that price).

Sucker Rally

Also known as the dead cat bounce or a bull trap, a sucker rally is a temporary hike in the specific stock price or even the market as a whole.

Supernormal Growth Stock

When a stock has continuously grown more than the economy over a period of one year or more, it is called a supernormal growth stock.

Swap Ratio

This is ratio for swapping the stocks of an acquiring company with the target company's shares.

Synthetic Dividend

This is an income that is synthetically created by using certain financial security to produce a dividend-like cash flow stream that yields periodic receipts.

Hope you find this stock terms glossary useful and helpful in building your own stock market strategies.



Stocks, Bond & Forex :: Bottom Fishing With The Bears by Ivan Cavric

Bottom Fishing With The Bears by Ivan Cavric

A famous quote attributed to Baron Rothchilds encourages us that "the time to buy is when there is blood in the streets." It is somewhat dramatic but it does get your attention. Reading and listening to the latest financial news one would have to conclude that there is "blood in the streets", at least figuratively speaking.

Certain market sectors have been pummeled, primarily the Financials and Auto industries. Each day brings more bad news and it seems that there is no light at the end of the tunnel. Foreclosures, bankruptcies and government bailouts dominate the financial headlines. You hear things like no one is too big to fail. Yet our system is such that periodically these events must occur and that the survivors end up much stronger and more competitive when it's all over. It's in times like these that opportunities arise. For the brave souls who go against the tide they become beneficiaries of great rewards. Others may see them as reckless or in most cases simply "lucky". However it's more than that. It's the ability to act when others remain paralyzed. The only question is how to prudently go against the tide? Problem with bottom fishing is that no one really knows with certainty where the bottom is and when will the turnaround occur.

The next few paragraphs will attempt to outline a strategy to us for bottom fishing. It has been my experience that having a plan gives you the courage to act when the majority remain on the sidelines. Is this strategy foolproof? Of course not! Nothing is, and if you are one of those who believe otherwise, save yourself some time and stop reading the rest. However what it will do is greatly increase the probability in your favor. It will give you a blueprint as to how to proceed through the everyday noise. I know you must have heard this saying hundreds of times before, so one more time won't hurt. "People don't plan to fail, they fail to plan." Investing in the market isn't any different, you need a plan. Especially in a bad market! The strategy that is outlined works on individual stocks as well as EFT's (exchange traded funds). You choose your own investment vehicle. As a suggestion it would be wise to use quality stocks listed and or quoted on major markets such as NYSE and NASDAQ as an example. And preferably purchase stocks that compose the S&P 500 Index. Only you know your risk tolerance, this is merely a suggestion.

Enough http://binaryoptions-tradingsystem.com/ with the prelude, lets get down to the Bottom Fishing Strategy or BFS for short. In the demonstration I will use a fictional automaker listed on the NYSE trading at $10 per share under the symbol DOG. That's right DOG, and it's fictional and for illustration purposes only, so don't go out and try to buy it or worse say that I am recommending the stock. As with most of the auto sector DOG has been hit hard. The price of the stock is down 60% from its 52 week high. Could this be the bottom? Who knows? As you research the company you feel that it may be a good long term investment and this seems like how to buy shares of a company buying opportunity. You have $10,000 to invest, what would be the best way to proceed?

Well, let's put the BFS (bottom fishing strategy-remember) to work. Follow the seven steps carefully. They will apply equally to any investment decision you make.

1. Divide your $10,000 allocated for investment into four groups of $2,500. The procedure is the same whether investing $1,000 or $1 million. If you have under $1,000 than it would be best to consider other options.

2. Immediately purchase 250 shares of DOG at the current market price of $10 per share using your first $2,500 allocation and keeping the remainder in cash hopefully earning interest. (NOTE: commissions are not included in our illustration because they vary greatly between firms).

3. If and when the stock drops by 7% or $.70 to $9.30 buy 268 shares of DOG using your second $2,500 allocation. Now you are holding 518 shares of DOG at an average cost of $9.68 per share company offerings still have $5,000 to invest.

4. DOG drops another 7% to $8.65, buy 289 shares suing your third allotment. You are currently holding 807 shares of DOG at an average cost of $9.20 per share and still have $2,500 to invest.

5. Stock drops again by another 7% to $8.04, buy 311 shares of DOG. Your total holdings of DOG are 1,118 shares at an average cost of $8.94 per share and you are fully invested.

6. For Information about day trading software what does bullish market mean Strategies From Dan The Binary Options Trading Expert is the place to be to have an overview of the info you're searching for.This step is VERY IMPORTANT. Place a stop loss order 15% below your last purchase price which in our fictional illustration was $8.04. Therefore an open stop loss to sell 1,118 shares of DOG would be entered at $6.84. DO NOT CHANGE THIS!

7. If stopped out of the trade, which would mean the stock traded at or below $6.84, DO NOT BUY THIS STOCK AGAIN! UNDERSTAND! Go elsewhere. You have lost $2,359.59 or approximately 23.5% of your investment but it could have been worse. This is your worst case scenario and you know it before you even place your first trade. Look elsewhere for opportunities.

Follow this procedure for every investment you are considering. BFS allows you to plan out your purchases systematically before you execute your first trade. Always keep in mind, once you decide to use the BFS, stick with the plan.

Yes I know, I can hear some of you already saying, "well that sounds good but what if the price of the stock doesn't drop after my initial purchase"? Or "I purchased a couple of times and it stopped going down"! Congratulations! You have managed to pick the bottom, now hold on for the ride up and enjoy your profits. And yes I do have a strategy to maximize your profits when your stock is rising. However that is being saved for another article, maybe even a book. Now that you have a tool the rest is up to you, put it into practice, plan wisely and trade with confidence.



How To Play The Stock Market With The Day Trading Robot by Jackson Stone

Day Trading Robot is a newly released piece of market software that provides you with trading tips for penny stocks. There is no need to learn how to play the stock market. I'm going to go over some of the issues that aren't discussed in the sales copy on the Day Trading Robot sales page. There is really no need to learn to play the stock market, because this software tells you what to do.

The Day Trading Robot is not the first piece of software to provide this information to its users. Stock tip newsletters have been in existence long before the invention of the computer. People have always been looking for tips to learn how to play the stock market.

Individuals are always looking for methods to get ahead, to profit sell share in and to increase their short run performance in the stock market. The Day Trading Robot is the latest product that has been developed to meet that huge demand.

http://www.market-software.net/ ;

The software pulls information from the stock market to create a stock chart of each stock over the last week of trading. Then these charts are compared to specially encoded patterns in the trading. The robot actually learns how to play the stock market on its own.

After digging through all of the claims and flashy salesmanship, we reach the real issue. The Day Trading Robot is a tool that helps greatly with the technical analysis of stocks.

The analysis of stocks is not the sole property of the Day Trading Robot. Share traders, day traders and options traders all perform technical studies and even low risk mutual fund handlers to assist in deciding where to commit their revenue.

It is the ability of the Day Trading Robot to learn from its mistakes and improve over time that allows it to claim its superiority. It is constantly learning how to play the stock market. It continually compares its forecasting and checks them against the outcomes. The concept is that the trading robot learns from its mistakes and makes better and better selections as time goes on. As stated it actually learns how to play the stock market, pretty impressive.

It may be difficult to accept for many that this software can actually do what the creators say it can do on their sales page. Without having the chance to look under the hood and examine the source code, nobody can really say how it actually works. What they are claiming in the sales copy is technically workable, logical and reasonable to be sure. It is not above the scope of software to learn how to play the stock market.

The creators of the Day Trading Robot have stock trading programs actual brick-and-mortar office in Miami, Florida. There is actually someone there to answer the phone and you may visit the office if you like. This should be a very reassuring fact, because scammers and swindlers don't bother to have an actual business office.

I know what you're asking-Does Day Trading Robot actually perform?

This is the reason you're reading this right?

Day Trading Robot quarries penny stocks, which entails that a low count http://www.optionfair.com/ of purchasers can have a substantial outcome on their cost.

The software sends out e-mail stock tips to its customers. In all likelihood hundreds of customers inside a couple of weeks of launch receive these tips. Based on this fact alone a Day Trading Robot stock tip could very well go up merely from all of its customers buying the share, regardless if there was going to go up on its own otherwise! Many of these investors probably never learned how to play the stock market, they are just following the advice of the software.

Now the doubters may decide that it's worthwhile signing on for the stock tips, just to make a quick buck from the market distortions made by the Day Trading Robot picks. They may ask themselves. If you know a penny stock is going to rise, why not make a quick buck, right? Why bother to learn how to play the stock market, if you don't have to?

http://www.market-software.net/ ;

Some may find it difficult to partake in and benefit from the market distortions provided by the Day Trading Robot picks.

The makers of this amazing software package are very confident in his ability to perform and learn how to play the stock market as they say it does, they offer at eight week money back guarantee trial run.

Some may think that during this time the gains that will be noticed are not benefit of software power but rather the volume of buying based from the newsletter it produces. Given that the stock market newsletter is sent out to thousands of the acute traders every week. It's quite difficult to appraise the software's true performance.

Are we really all that concerned that this gain stock prices because of a deft programming or simply because of buying based on the newsletter? A win is a win, regardless of why it happens.

Okay, There's Always a Catch, What Is It?

As you already know, everything has its own downside, so does the Day Trading Robot.

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Nobody can control everything.

Without a doubt some of the picks made by the Day Trading Robot are going to be dogs. They'll lose money, maybe every cent of their value, after all, these are penny stocks, and they've been known to do that.

You could lose money from a stock you traded based on a tip from social network private Day Trading Robot, you could lose all of it.

Even the best traders lose as often as they win - they cut their losses and dump the dogs early and they keep the winners longer so they come out ahead. For Information about stock market 2000 is the place to be to have an overview of the info you're searching for.If you're considering learning how to play the stock market based on advice from this software or any system, take heed to the following precautions:

* Only trade with money you can afford to lose.

* Never place a trade with borrowed cash.

* Develop and follow a strict trading plan, no matter what.

* If you can't even think of having a losing trade then you may want to find another way to earn a living.

Day Trading Robot-What's The Call?

Is this worthy of your hard earned cash?

I imagine the question is, could you bring in more cash from this than it costs you?

Can it save you the time and trouble of learning how to play the stock market?

Because of the eight week free trial, you don't have to guess you can find out on your own.

If you have even a little bit of money a little bit of time to invest in penny stocks, you got nothing to lose because of the trial offer. If you do not bring in at a minimum $100 in your initial 8 weeks, resign from the program. You can try this out at no cost except possibly a bit of your time and maybe a small trading loss.

The reality is, if you don't have little but of extra money available right now, you really shouldn't be considering software like this in the first place.

If you'd like to learn more about the eight week free trial offer for this penny stock trading software click the link below.

http://www.market-software.net/ ;



Trading With Penny Stocks Is It Right For You?



It is a very difficult job to decide when the time is right to invest in the stock market and what factors should be considered while choosing the right kind of penny stocks to trade with. Even though these stocks play when to buy stocks href="http://www.binaryoption.com/">http://www.binaryoption.com/ a vital role in making people get rich within a very small span, there are also people who have suspicious view regarding investing in these stocks.

All stocks which have a share value equal to five dollars or less than that per share and are traded over the counter are known as penny stocks. Being the stocks of growing companies, these stocks are considered as risky investments. Bearing low trading volumes, these stocks fail to attract investors.

Before investing into penny stocks, you must consider whether this is the right time or you must wait for the right bang. One must take into account the possible ups and downs, which the stock market may face. It must be looked in the terms of your affordability of loosing in the bet. If you think, you may not stand still after loosing the whole of your investment then it may be taken as granted that you are not ready for the game right now. But if you think you can withstand loosing your investments then you must get into the trade.

If you focus solely on penny stocks, you may conclude that it is not always true that the stock which you have got will let you make money. You must get yourself armed with knowledge regarding these stocks. And for that you are required to do a little research. You can take the view of those who are already investing in these stocks and even you can subscribe to penny stock trading websites so that when the right time comes for investing in these penny stocks, you may easily find your way of trading with these fast moving stocks.

Once you have decided to invest in these stocks, the next thing is the buying of these stocks. The latest penny stock alerts in the real time can help you. There are many penny stocks websites which come forward with this service. They give in detail the movement of the stocks with the latest stock picks. These help you know at what price these stocks should be purchased and what price they can be disposed of. Like any investment, you wont get results over night, you have to keep patience and with good stock tips you can trade your pennies for dollars.

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Sure Shot Intraday Trading Tips



Intraday Tips can be either extremely profitable or extremely non-profitable. Intraday traders can generate either huge percentage returns or huge percentage losses. But we will say Intraday Trading is an art because many day traders manage to earn millions per year solely by Intraday Trading.Intraday Trading looks to be very simple but in Intraday Trading one has to be really fast and quick. Intraday trading can become very risky, especially if one has poor discipline, money management. Stock brokers usually allow bigger margins for day traders.Every trader is tempted to know how intraday trading works and how they can make profits at the end of the day. Most of the investors earn profits At the end of the session the investor can book profits while trading on large volumes at a much smaller price so that the profits can be recorded. stock market sell important point to be considered is that the investor has to be realistic because they should know how to control losses with the help of Intraday Tips.

There are many ways to invest and gain profit. One of the best options is by investing in stock market. People who are risk takers can work in this market and earn handsome amount without leaving the comforts of their homes. Through these stock market tips, you can list of ipos how to make money in the stock market money and for many people the income from the stock market is the major source of earnings.Learning everything you can about this business should be your first step. It is important to know that proper awareness is important for any goal. One of the best techniques when it comes to share trading is called intraday trading. This is a strategy that involves the buying and selling of shares within the same day. It is true that intraday trading is fast and rapid so you need all the experience and patience to be more effective in this trade. Some reliable Intraday Tips help you along the way.It is important to find a reliable Intraday Tips provider that can help you minimize the risks that you have to take.

Mostly the strategy regarding the day to day trading is similar to the long term investing in the stock markets. However there are some specific Intraday Tips too which can come in handy when you are thinking about making some fast bucks. Before proceeding further let us understand about intraday tips in respect to share market. To analyze this further this can be described with the help of an example a new intraday high means the security has reached a new relative to all other prices during a trading session. In some situation the intraday high is equal to closing price. Most traders pay heed to price movement with the help of real-time charts so that they can get maximum profit from short-term price deterioration.

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Money CapitalHeight Research Pvt Ltd is a leading Stock Advisory http://www.binarytrends.net/ Company ,having a strong hold in providing most authentic and accurate Equity Tips as well as Commodity Tips .For 2 days free trial call 0731-4295950

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