Stock Terms - Glossary of Stock Market Terms and Definitions

8/11/2019 Stock Terms - Glossary of Stock Market Terms and Definitions

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Stock Terms - Glossary of Stock Market Terms and

Definitions

Before starting my glossary, let me very first define the particular scope regarding this glossary.

Stock industry terminology is actually a extremely vast subject that will insures the text market,

stock market, trading, portfolios as well as stock term slang as well as jargon. So, if you are

wondering what exactly this article contains, allow me to give you an insight. My article mainly

contains all the stock terms, coming from all the general classes associated with stock exchange

finance, and throughout addition consists of the phrases and also jargon that a person simply should

most particularly know, in case an individual are entering the actual stock markets. It consists of just

about all feasible terms belonging towards the categories regarding 'investment finance', 'mutual

funds', 'stock industry regulatory policies', 'trading basics', stock market basics and 'stock

marketplace instruments'.

Before I begin my stock terms glossary, allow me to inform you concerning the schematic

progression associated with this article. It follows an alphabetical series, starting from your letter

'A', heading all the approach down to the letter 'Z'. The Actual list additionally defines several

alphanumeric words. I hope in which choosing the stock term you're searching for, will be easy to

find within this truly lengthy set of stock terms and also stock exchange definitions.

Stock Industry Terminology

Stock market Definitions

A Share

The phrases 'a share' provides 2 meanings: (a) That They would end up being the calls of typical as

well as preferential shares that have increased voting legal rights on company issues. (b)In USA,

mutual funds terminology states 'a shares' to get an upfront revenue load associated with 5.75% in

the quantity invested.

Abnormal Return

Any return above (abnormal profit) or even below (abnormal loss) the expected return on a stock ormaybe a portfolio is termed as abnormal returns. any returns above industry returns or even

virtually any returns beneath industry returns will furthermore be abnormal returns.

Absolute Priority

The distribution of your company's net income is actually undertaken in accordance with all the

absolute priority rule, that specifies the order involving disbursement as: (a)Interest to always be

able to Creditors (b)Dividends for you to Preferred Stockholders along with (c)Dividends for the

Widespread Stockholders, just throughout case associated with liquidation.

Acceleration Covenant

In a new case regarding default or even breach regarding contract, this covenant as well as clause


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matures the contract performance immediately, so that almost all dues are generally settled

immediately.

Accommodation Trade

When a new trader enters straight into non-competitive trades to become able for you to avoid

certain liabilities, your action is termed as a new possible accommodation trade. This kind of

agreement will be illegal throughout many countries.

Accrued Dividend

A regular dividend which is considered to become earned but is not truly declared or perhaps right

away payable by the company.

Accumulated Earnings Tax

The federal tax that's levied in any kind of retained earning that are in excess in the quantity

considered reasonable, is actually termed as accumulated earnings tax.

Acting in Concert

When two investors just take similar actions (act together), for you to gain a single typical goal, they

will have been demonstrated to become acting in concert.

Accounts Payable Turnover Ratio

This is ratio that measures the particular rate from which debts are usually discharged by a firm.

This is calculated through dividing the particular total annual purchases using the total annualaccounts payable. The Particular higher the ratio is, the actual better it's for your firm.

Active Index Funds

These tend to be funds in which the managers attempt to monitor an index similar to S&P500. Right

now there is surely an try to beat the actual benchmarked index by simply utilizing strategies, such

as adding stocks in which possess a superior performance inside relation to the index and

furthermore by utilizing marketplace timing, etc.

Actively Managed ETF

Actively Managed Exchange Traded Funds permit fund managers in order to trade outside regarding

the benchmarked index, deviate together with respect in order to sector allocations as well as help

make additional changes that are required to ensure elevated returns.

Activity Ratio

This will always be the firm's effectiveness indicator, because regarding it exhibits the benefit along

with speed of the company to become able to transform different accounts as well as receivables,

directly into sales along with cash.

Adjustable-Rate Preferred Stock - ARPS


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Unlike a set rate preferred stock, an adjustable-rate preferred stock pays dividends that will

fluctuate using the rate associated with interest about the benchmarked Treasury bill.

Adjusted Debit Balance

This will end up being the final margin account balance, which is arrived at simply by netting all the

balances owed as well as outstanding payments, with the in some recoverable format income or

perhaps losses.

Adjustment inside Conversion Terms

Convertible preferred stock can be exchanged to obtain a fixed quantity of common shares in

respect with almost all the conversion terms. Adjustment in conversion terms can be produced to

ensure that your holder in the convertible preferred stock doesn't acquire affected by simply events

just like widespread stock splits.

Advance Commitment

When someone promises in order to sell (or buy) something which he presently doesn't very own (or

hasn't bought yet), he is considered being generating an advance commitment.

Affidavit associated with Loss

This is definitely an oath that states which both the stock certificate or perhaps any other physical

record associated with becoming the holder involving the safety has been lost because of theft, fire,

destruction or flood.

Affirmative Obligation

This is an obligation in specialists to publish the bid or perhaps an ask, when there's insufficient

market demand or perhaps provide to match orders, about the NYSE.

After-Hours market Close

The final cost attained through the security, within the following hrs market, is referred for you to as

after-hours industry close. Although, this will be not the price at which usually industry opens the

particular subsequent day, the investor can use this to gauge the actual upside prospective with the

stock.

After-Hours Trading - AHT

Trading that's conducted through both, individuals as well as institutions, following the standard

trading hours around the main exchanges will be referred for you to as after-hours trading.

After-Market Performance

The performance of the stock after its original public offering (IPO), that is measured during the

lock-up period of time (3 for you to 9 several weeks from the date of the IPO), is referred for you toas after-market performance of the stock.

Agency Cross


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When a broker receives opposite orders with regard to specifically exactly the same security, within

precisely the same quantity, he can easily work as an agent as well as broker regarding each the

events involved. This particular each party representation simply by one person, is actually referred

to as agency cross or perhaps dual agency.

All or None - AON

Is the sell or even buy trade order, that is positioned to brokers, subject for the exact option of

supply or even demand. Non availability around the specific day, renders the order as canceled.

All-Holders Rule

The all-holders rule requires a company to end up being able to implement uniform policies (stock

buybacks, stock splits, stock dividends) pertaining to shareholders belonging for the same class

involving shares.

Allied Member

Voting shareholders as well as officers might always be granted access to the trading floor, as allied

members, despite certainly not being members in the new York Stock Exchange (NYSE), provided

that they clear the designated exam.

Alpha

This danger adjusted performance measure called alpha, can be exactly the differential between

your actual and expected returns of a stock or portfolio.

Alpha Generator

When a portfolio holder experiences extra returns about adding a burglar alarm to the

aforementioned portfolio, with out to try any additional risks, your particular security can be

referred to as an alpha generator.

Alphabet Rounds

The early rounds associated with funding that are needed for that start up of a new business or even

firm, tend to be termed as alphabet rounds.

Alternative energy ETF

These tend to be exchange traded funds that purchase companies engaged in the manufacture of

alternate energy, just like ethanol, solar power and clean energy and also analysis pertaining to the

same.

American Depositary Receipts

When depository banks within the US economy issue negotiable certification associated with

deposits, referred in order to as American Depository Receipts (ADRs), to aid foreign companiesraise funds inside their markets, your certificate will be called an ADR.

American Depositary Shares


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When foreign stock will be issued inside the US markets, it really is termed being an American

Depository Reveal (ADS).

Anderson Effect

Derived via Aurthur Anderson LLP, an accounting firm associated with many scandals, the term

Anderson effect refers for the research requirement necessary by the auditors.

Ankle Biters

Stock concerns along with marketplace capitalization associated with less than $500 million are

generally popularly referred for you to as ankle biters, simply since they often gnaw at the ankles of

big cap stocks in which have a capitalization worth of greater than $10 billion.

Announcement Effect

When announcements, relating to modifications in monetary and also fiscal policy, produce a ripple

impact inside the stock exchange (increased volatility and also trading volumes) the particular

phenomenon will be known as an announcement effect.

Annual Report

This is a thorough document given by public companies, offering the economic highlights,

management discussions and also analysis (MD &A), economic statements, auditor's report,

corporate information and other relevant info towards the shareholders.

Annual Return

The annual return of a fantastic investment will be its compounded annual growth rate, calculated

using the help of your formula.

Anonymous Trading

This is when higher profile investors tend to be able to place bid along with request quotes

anonymously, for you to eliminate unnecessary speculation.

Anti-Greenmail Provision

Greenmail is a defensive maneuver wherein any premium is actually paid out towards the majority

shareholder in order to offer again shares towards the organization to thwart the possible takeover

attempt. Anti-Greenmail provision makes sure that exactly your same repurchase supply is made to

almost all or any shareholders or no much less than approved with a shareholder vote.

Anti-Martingale System

Martingale can become a class associated with betting strategies (see martingale definition) as well

as anti-martingale system is a system in which thwarts the prosperity of these strategies.

Anti-Takeover Measure

These are generally steady along with sporadic measures adopted by companies, for you to stop the


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potential acquirer via making a hostile bid for your goal company.

Anti-Takeover Statute

Anti-Takeover statutes tend to be state laws in which aim at curtailing hostile takeovers.

Anti-Dilutive

This is a transaction which includes the result involving escalating a company's Earnings per Discuss

(EPS).

Any-and-All Bid

An any-and-all bid is the maximum value with which the particular acquirer will be prepared to

purchase virtually any shares of the target, up to the pre-determined amount.

Appraisal Right

This is a alternative party valuation demanded through the shareholders to become able to ensure

that mergers and also acquisitions do not necessarily outcome within the acquirer having for you to

pay less than the particular existing value of the prospective company's worth.

Approved List

This is the listing of legal investments that will limits your account manager's as well as broker's

variety of choices, so far as choosing suitable stocks along with securities pertaining to have

confidence in funds along with mutual funds, is concerned.

Arithmetic Index

This is definitely an index which offers equal weighting for you to all the individual stocks that

comprise your index. This may be basically an unweighted index, as all stocks provide an equal

weighting.

Ask

This may end up being the value as well as quote, with which a trader is willing to sell his commodity

or security.

Asset Mix

This refers for the numerous lessons associated with assets, viz. stocks, bonds and real estate, that

comprise an investor's portfolio.

Asset Performance

This is actually a measure of the company's ability to produce revenues using productive resources,

inside relation to its peers. That will be measured with the aid associated with Turnover ratios,Return in Asset (ROA) ratio along using other indicators.

Asset Turnover Ratio


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This is actually a ratio that measures the company's capability to create revenues making use of

productive assets.

Asset Valuation

The technique of identifying the need for an asset, a business or a stability sheet merchandise

making use of relative valuation; quantitative valuation techniques such as free money flow model,

dividend low cost model and residual income model; economic statement analysis and other

techniques is actually called asset valuation.

Assimilation

A complete distribution of the brand new securities issued for the public, can be known as

assimilation.

At-The-Close Order

This refers for the execution of the industry order or maybe a limit order, at a cost in which almost

matches the particular closing price. Inside case a new very final minute execution isn't possible, an

order is an acronym canceled.

At-The-Open Order

Order in order to buy as well as sell a burglar alarm in the opening value as well as in the beginning

with the opening season, failing which, an order can be canceled.

Atlas Options

This equity based exotic option, in which belongs for the mountain rage choice family, features a

unique means of payout calculation. Just About All the actual best along with worst performing

stocks are generally removed from your underlying equity portfolio plus they payout is actually

calculated about this figure.

Attribute bias

If any stock selecting technique produces results with similar fundamental characteristics (leading

to obvious correlation), the process has been said to possess an attribute bias.

Auction

This is actually a system where different customers place potential bids to purchase any specific

item or perhaps security. You can easily find various different types of auctions, being a Dutch

auctions.

Auction Market

The bid value and the inquire price are matched for the sake associated with executing an order,

thus removing just about any scope for negotiations, inside an auction market.

Authorized Richesse Stock


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This is the maximum number of shares in which could be issued by a corporation, as outlined in the

money accounts portion associated with the balance sheet.

Automatic Stay

This can be applied each time a firm files pertaining to bankruptcy. That basically stops all creditor

efforts to recoup his or her liabilities, from your 1 filing pertaining to bankruptcy.

Average Expense Schedule Method

When trying to make out the particular gains or even losses produced through the sale of a few

shares of the mutual fund, the common price basis method is utilized to calculate the price basis.

Average Down

This is surely an investor strategy which is accustomed to carry along the average price of shares.

Average Qualitative Opinion - AQO

This will be the range provided by simply stock analysts to individual companies, depending on their

opinions as well as stock ratings.

Average Up

An investor strategy in which aims with obtaining the typical cost being lower compared to the

typical value for any group involving shares when a person purchase them collectively as well as in

larger numbers.

Away from your Market

When a security order isn't instantly offered at the price required, the safety is actually termed

being away in the market.

Stock Marketplace Terminology

Stock Industry Definitions

Back Up your Truck

A economic slang accustomed to refer to a sizable buy transaction made on a stock or financial asset

using the backing of a bullish expectation.

Backing Away

When the market maker fails to uphold his end of the deal, i.e. doesn't honor a new posted bid or ask

despite the very fact that his price and amount caveats are usually met, he is considered to possess

backed away.

Badwill

Something that's opposite for you to goodwill, badwill is gained if the shareholders and others in the


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investment neighborhood find out in which the organization has indulged in something that cannot

be considered an excellent business practice.

Bagel Land

When the actual stock price of the financial safety is approaching 0 dollars, i.e, it has fallen via stock

trading game favor credited to always be able to unresolvable internal issues, the actual stock is said

to possess reached Bagel land.

Baptism through Fire

Difficult situations (like IPOs as well as hostile takeover attempts) are usually experiences with a

business or maybe an individual, it has been said to be a new 'baptism by fire' situation. This

particular possibly strengthens the actual monetary situation involving the topic or perhaps entirely

tramples it.

Barefoot Pilgrim

An unsophisticated investor whom loses just about all his prosperity simply because of stock trading

(no knowledge associated with risks, return along with predictions) is actually termed like a barefoot

pilgrim.

Barometer Stock

When a burglar pricing pattern closely resembles the overall market, such that, it can precisely

predict industry pattern via its really own pricing, it is called a barometer stock. all bellwether

stocks fall below this category.

Basket Trade

Basket trades are generally single order revenue that will entail the particular buying or even selling

of a group of 15 or perhaps more securities.

Batch Trading

When distinct orders are generally accumulated with every other as well as executed

simultaneously, the transaction method is termed as batch trading.

Bear

A bear industry is a market when the general price ranges are spiraling downwards. The bear can

end up being a individual holding pessimistic industry views and also hence invests inside strategies

which pay out if the cost of the particular securities decline.

Bear CD

A CD (Certificate associated with Deposit) in which carries an curiosity which inversely correlates

using the market, will be termed as being a bear CD.

Bear Hug


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If there exists the doubt in which a target company's management won't agree to sell its shares,

bear hugs are employed to make the particular revenue lucrative. Bear hugs are when a deal is

created for you to purchase the shares of a business at a charge much higher when compared with

the market valuation.

Bear Raid

Bear raids are illegal attempts of pushing on the prices of your goal security, both by making

significant brief sales as well as by simply spreading unfavorable market rumors concerning it.

Bear Trap

When there exists a false industry signal of the rising stock or perhaps index as well as the

downward trend hasn't actually revered, it's termed like a bear trap.

Bearer Share

Any equity certification that is completely owned by the person holding it inside physical form, can

be known as a bearer share.

Beating your Gun

Beating the actual gun is a phrase provided to folks which have the knack involving industry timing

and the power to react just before others. While a beneficial transaction is actually executed around

the basis of information in which the marketplace will be but to react to, it's termed as 'beating your

gun'.

Below the actual Market

A transaction to buy or even sell a burglar alarm with a price lower compared for you to the heading

industry price, is actually referred for you to as the 'below the market' transaction.

Best Request and Greatest Bid

The lowest quoted inquire value as well as the highest quoted bid charge inside a competitive

industry are generally termed as best request and finest bid rates respectively.

Bid

The provide value made for getting a burglar alarm can be its bid price or price.

Bid Size

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

Bid Tick

A bid tick tells the bidder whether his existing bid is actually higher, lower or in line using the priorbids.

Bid-Ask Spread


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This may be the distinction involving the ask value and furthermore the bid price.

Big Bang

The day your London Stock Exchange (LSE) was deregulated in to a private restricted business

(27th October 1986), is well known throughout investment history since the Large Bang.

Big Bath

When the actual earnings statements tend to be manipulated to produce an undesirable

performance appear worse, in order to gain a synthetic cushion for that subsequent financial year,

the actual act is actually termed as a large bath.

Big Uglies

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

Blind Brokering

Blind brokering helps in maintaining an anonymity between the buyer and the vendor of the

security.

Blowoff

A bearish signal with regard to technical analysts, a blowoff can be a sharp cost boost following a

lengthy appreciation period. The idea is actually typically followed using a price fall.

Blue Collar Trader

This is a trader who has some other sources of earnings as well as does certainly not need the actual

trader job as the method to survival. That is more being a bonus or maybe a personal savings plan.

Blue Sheets

When requests are sent to market makers, to be able to supply specific details towards the

Securities and also Exchange Commission, they are referred in order to as blue sheet.

Blue-Chip Stock

These are usually stocks of financially strong companies that are attempted along with tested by

means of their capability to pay dividends throughout both, the nice as well as the bad times.

Boston Snow Indicator

This is a genuine market theory in which says, any white Christmas throughout Boston indicates

rising stock prices within the subsequent year.

Bourse

Any European stock exchange can be termed as a bourse however the term is most frequently

utilized in reference to Paris Stock Exchange.


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Bubble

When simply no fundamental analysis backs the huge surge inside the equity rates of your sector, it

is termed like a bubble. The Actual bubble typically bursts sooner as well as later, using a drastic

cost drop when sell off pressures increases.

Buy and also Hold

This is a lengthy term, passive strategy, in which in turn the trader purchases stock along with holds

it more than the specific period of your own time irrespective of short term price movements.

Buy Break

When the stock makes a movement higher than a new certain resistance, method . any buy break

and is truly a buy signal. Upwards momentum the majority of often follows a acquire break.

Buy, Strip along with Flip

In a new buy, strip and also flip strategy, purchased goal firms are usually held for a very short time

period of energy prior to becoming permit off via an IPO.


Stock Marketplace Definitions

Cabinet Security

A stock that is not necessarily actively traded despite becoming detailed on a major financialexchange.

Call Price

Price in that a preferred stock or a bond could be redeemed through the issuer.

Call Warrant

Certificate issued together using a preferred stock that entitles the shareholder in order to purchase

the underlying share with an agreed upon price on or perhaps before the specified date.

Callable Widespread Stock

Shares issued to acquire a subsidiary organization from the parent organization wherein the

particular latter reserves the best in order to redeem your issued shares with a pre-determined

value upon or even following a specified date.

Clientele Effect

Changes within investors' stock holdings due to perceived good or bad results of changes in businesspolicy.

Close Position


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Going brief in the security if long, along with vice versa.

Closing Tick

The distinction involving the variety of stocks in which closed more than his or her previous trade as

well as those that will closed lower.

Collar

An alternatives strategy that is implemented by ordering an out-of-the-money place choice and

simultaneously composing an out-of-the-money call choice when a new long stock situation offers

proved profitable.

Commodity ETF

A fund which tracks an index but is traded just such as a stock along with invests in physical

commodities, viz. agricultural goods, natural sources and also precious metals.

Common Shareholder

An entity which includes an ownership stake inside a organization in lieu involving widespread

shareholdings.

Common Stock

Securities that grant voting legal rights and also participation legal rights inside a company's good

results via dividends and also capital appreciation.

Composite Index

Grouping regarding equities utilizing techniques, viz. value weighted along with value weighted or

even unweighted, to arrive at a basket associated with securities that's representative regarding the

overall industry as well as sector.

Control Stock

Significant part of the outstanding shares of your business owned by an entity permitting the latter

to exercise controlling influence on the former.

Conversion Arbitrage

A danger neutral proposition , involving buying a put option and writing any covered call.

Conversion Price

The price in which usually any convertible preferred stock can be exchanged pertaining to

widespread stocks.

Cooler

An individual or possibly an institutional investor that has poor luck with equities along with tends in


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Daisy Chain

Daisy chain indicates each occasion a team of fraudulent traders carrying out some sort of

counterfeit trade superficially, inflate the cost of your certain security, so that it gets sold with a

good profit.

Dark Pool Liquidity

It is truly a slang term this means the actual volume regarding trade which can easily be not really

available towards the public and is also created regarding institutional orders. That will be called

dark Pool Liquidity since the information on the particular trade are hidden or concealed in the

public. The Particular block trades represent your almost all dark pool liquidity which is expedited

away in the central exchanges.

DAX

It is a stock index that will represents 30 German companies that trade on the Frankfurt Exchange

and are between the largest and also the most liquid German companies. the prices which are

accustomed to calculate the particular DAX Index result from tan electronic trading system called

Xetra. Index weightings with a measure of average trading volume are calculated simply by making

use of the free- floating method.

Day-Around Order

This term is primarily by traders in the general equities market. Day-Around Order implies an

investment that cancels and replaces an order positioned on the prior day using altered value limit

or volume. While your day order is positioned the day around order will get canceled following the

company day.

Dead Money

It is truly a slang term employed for funds invested in the security using negligible aspiration of

returns or even profit.

Deal Ticket

A deal ticket can be referred to as "trading ticket" which is created following the dealing involving

shares, derivatives or perhaps futures contracts. The idea contains every 1 regarding the terms,conditions and also fundamental details in the trade agreement.

Debt Load

Debt load refers to the quantity of financial debt the organization can be carrying that is recorded in

the publications with the company. you can get the company's financial debt within the balance

sheet regarding the business that is produced on a quarterly basis.

Decimalization

Decimalization will end up being the procedure of changing the prices via fractions for you to

decimals, upon which the actual securities trade.


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Decline

Decline means if the price of a safety falls down inside value on a specific trading day as well as

consequently closes at a value lower as compared to its opening price.

Defensive Buy

Defensive acquire will be a stylish purchase due to the lower quantity regarding risks attached to it

and never since associated with higher returns or perhaps profits.

Defensive Company

Defensive company is actually a company whose sales along with earnings remain stable during

economic rising and economic downfall.

Deferred Share

Deferred talk about indicates the reveal which does not maintain any kind of legal rights on the

assets associated with the company if likely bankrupt until the nearly all preferred and also the

typical shareholders tend to be paid. These shares tend to be mostly issued for the founders of the

business and also confines the right to receive dividends until one other shareholders are paid.

Delaware Corporation

Delaware Corporation indicates the corporation that may carry out its company in any state

nevertheless offers to become legally registered in the state associated with Delaware.

Deleted

Deleted describes a security that is no more included on the certain or even a specified market. The

idea can furthermore be known as "delisting".

Delisting

Delisting implies getting rid of the security trading about the exchange since the business for that

your stock is actually issued, regardless involving whether voluntarily as well as involuntarily, just

isn't in accordance with just about all the listing requirements with the exchange.

Depository Receipt

Depository receipt can become a negotiable economic instrument that is issued through the bank

depicting a foreign company's publicly traded securities. the depositary receipt dealing is done on a

neighborhood stock exchange.

Designated Order Turnaround - DOT (SuperDOT)

Designated Order Turnaround - DOT (SuperDOT) is surely an electronic trading system which

usually boosts the efficiency and also performance of your order by simply routing it immediately tothe experts on the trading flooring as opposed to a broker.

Desk Trader


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Desk trader indicates a trader who is confined or perhaps restricted to hold in trade using a firm's

clients and it is not able to carry out transactions with his/her very own firm's accounts.

Direct Repurchase

Direct repurchase implies whenever a business purchases or even repurchases its shares in the

market, lowering the quantity of outstanding shares.

Dirty Stock

Dirty stock indicates a new stock that is not really provided an excellent delivery status because of in

order to lacking as well as wrong endorsements or perhaps documentation transfer. Dirty stock will

mostly intrude your transaction procedure.

Stock market Terminology


Early Exercise

American type choices permit the alternative or other securities being exercised ahead of its

maturity date. This kind of process is actually known as early exercise.

Earnout

This can be a provision included in the contract proclaiming that the owner of the enterprise will

gain additional long term compensation based on the company achieving certain financial objectives

in the future.

Eat your Own Dog Food

This term describes any self-sustaining exercise of your organization wherein the company utilizes

its extremely own items to transport out its own daily operations.

Earning Prior To Tax (EBT)

It is surely an indicator of the economic performance of your company. That can be calculated as:

EBT = Income - Expenses (excluding tax).

Effective Tax Rate

It refers for the price of tax that any taxpayer would be charged, if taxing ended up being completed

with a constant rate rather than with a progressive rate.

Election Period

It is the period frame by which an investor can choose to extend or perhaps shorten his maturity

date with an extendable or retractable bond.

Equity Linked Note (ELN)


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This can become a economic instrument whose rate involving return is dependent upon or is decided

by the performance of your single equity security, a group of equity securities or even an equity

index.

Employee Contribution Plan

It is really a type regarding retirement plan that is sponsored by way of a business as well as

necessitates the employees to create contributions for the fund. These types of contributions are

usually deducted through his salary as well as employers additionally help make an equal

contribution to the fund.

Encumbrance

Also referred to be able to as a new lien, an encumbrance can be a declare against any property. The

Particular transferability of the property is affected like a result.

Earnings For Each Reveal (EPS)

This is a share of the company's revenue that will goes in your direction of the dog owner of each

talk about in the company. That is definitely an accurate indicator of the company's profitability.

That is actually calculated as: EPS = (Net income - Dividends upon Preferred Stock) / Typical

Outstanding Shares.

Equity

It describes any large amount of issues related to some company's finances. Equity may broadly

refer to just about any merchandise owned by method of a party which includes absolutely no

outstanding debts accrued against it.

Equity Income

Any investment in stocks (equity) will earn earnings inside the form of dividends. This specific

earnings will be called equity income.

Erasure Guarantee

Any changes being produced to be able to bonds as well as securities must be witnessed simply by a

certified lender for you to ensure legitimacy. Your institution then provides what's referred in orderto as erasure guarantee.

Escheat

It refers for the transfer associated with an individual's estate or perhaps property towards the

Government in the event regarding his death, in case there is zero written will or a predetermined

heir for the estate.

Escrow Receipt

It can become a guarantee issued with a bank proclaiming that the protection as well as deposit

associated with an choice writer actually exists, along with in the huge event the option can be

exercised the aforementioned security or even deposit is likely to be readily available.


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ETB

The Ethiopian Birr, the official currency regarding Ethiopia.

EUR

The currency code for that Euro. That may become the currency commonly found in with regards to

21 with the 27 countries that comprise the particular European Union (EU).

Euro InterBank Supply Price (EURIBOR)

Within the EU InterBank market, the actual price in which in turn panel banks could borrow funds

from other panel banks may always be the EURIBOR.

Eurocredit

A type of mortgage where the particular lending bank extends the credit inside a currency other

than their own national currency.

Euroyen Bond

It describes any eurobond which is denominated throughout Japanese Yen and as a result are issued

outside Japan by a non-Japanese company.

Enterprise value (EV)

Sometimes, rather than considering market capitalization, a company's value could be measured

making use of EV. The idea is actually calculated as: Industry Capitalization + (Debt + MinorityCuriosity + Preferred Shares) - (Total cash as well as Money Equivalents).

Ex-legal

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

law firm.

Exchange Distribution

It is truly a kind of trade occurring on a securities exchange flooring in which many transactions areusually pooled together and are recorded as one single transaction.

Exclusion Ratio

It is the real fact that part of the particular return upon investments (ROI) which is exempt in the

income tax. Alternatively regarding richesse gains, it represents the actual repayment of capital

gains.

Exit Strategy

An exit strategy can always be a program produced by an investor to have from a fantastic

investment created by him. The idea can in addition be known as a "harvest strategy" or a "liquidity

event", along with is really a method of cashing out an investment.


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Extendable Bond

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

Extrinsic Value

The distinction involving the expense of an choice as well as its intrinsic value.



Fair Weather Fund

This is a mutual fund that will carry out extremely well if the companies are high, and frequently will

carry out extremely poorly if the companies are down. These kind of funds are usually very active

within bullish industry conditions.

Fairway Bond

This is truly a bond that will accrue interest once the embedded index or even interest-rate

alternative underlying the link remains inside a specified range. It can furthermore be referred in

order to as corridor bond or index floater.

Family involving Funds

When one investment organization as well as fund business provides a team associated with mutual

funds, it is called a household regarding funds or merely just a fund family.

Free Asset Ratio (FAR)

This will end up being the market worth of your assets involving an insurance company which are

more than and above its policy liabilities.

Fast Market

When there exists a great imbalance associated with trades within the industry (especially in the

event the number of sells greatly outnumber the actual variety of buys) it outcomes in the fastmarketplace that's extremely volatile as well as sees heavy trading.

Fast Tape

A fast tape offers the range of costs instead of one steady price thanks to the fast movement in the

futures market, that happens as becoming a result of a significant quantity of transactions.

Featherbedding

This term implies the particular hiring associated with more workers as compared to tend to beessential to complete a particular task, credited towards the strain by the labor unions.

Feeder Fund


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This is a fund whose investing is actually carried out by means of an additional fund (known because

the master fund).

Fifty % Principle

This principle predicts that will prior for the present trend continuing forward in the market, there'll

occur a cost correction associated with around 1/2 as well as 2/3 with the alteration of price.

Fighting the actual Tape

Any motion that should go against the ticker tape. If industry will be falling along using a person is

continuously buying, he has been said being fighting your tape.

Fill

It may always be the simple job involving fulfilling or even completing an investment for virtually any

safety or perhaps commodity.

Fill or Kill (FOK)

This is actually an investment positioned for a huge amount of stock also it must be fulfilled either

instantly or not in all.

Final Prospectus

This may end up being the absolute final variation of the prospectus that is providing securities

towards the general public. The idea can furthermore be called statutory prospectus.

Financial Asset

Financial assets have worth credited in order to contractual claims. Stocks, shares, bonds as well as

bank deposits are any handful of economic assets.

Financial Risk

The risk in which a company will most likely be not able to meet its financial obligations.

Organizations dealing indebted instruments use a higher monetary danger as compared to

companies dealing mostly in equity.

Financing

Any exercise of the financial institution or even a bank that leads to providing funds with regard to

investing or even making purchases will be financing.

Fire Sale

This identifies a predicament inside the marketplace where the rates are very low. This really is

considered a very great time and also power to buy.

Firm Quote


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This will always be the cost quote in a burglar alarm (by a dealer or maybe a market maker) that

enables a bid up till your quantity with the firm quote. Generally there is certainly not any

negotiation here unlike in the case of the nominal quote.

Fixed Annuity

This is surely an insurance contract wherein the insurance policy company makes fixed payments to

the annuitant for the duration in the contract. Your insurance organization provides capital also as

earnings for the annuitant.

Fixed Fascination Rate

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

FJD

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

FKP

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

Flat Tax

A system where every individual is charged exactly the particular same quantity of tax, irrespective

associated with his or her bracket associated with income.

Flexible Exchange Choice (FLEX)

When a new clearing house writes an option whose strike price, expiration date and also exercising

design could be modified.

Floating interest Rate

Unlike fixed fascination rate, floating curiosity rates are versatile and can rise as well as fall based

upon the market conditions.

Fortune 500

Using the the majority of recent economic figures along with income numbers, a new listing of 500

in the largest companies inside the United States Regarding America will be drawn, on an annual

basis.



Gadfly

A gadfly is a term used for any one who attends shareholders meetings simply to request tough and

also embarrassing concerns as well as criticize the business management.


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Gap Risk

Gap danger will always be the coverage in order to adverse price actions external of trading factors,

like cost movements because involving adverse news announcements.

Gather Inside The Stops

This can end up being a stock trading strategy aimed at triggering quit loss orders simply by

promoting big levels of stocks as well as bringing the company's stock value down.

Gazelle Company

A organization that raises its revenue income with a growth charge involving 20 percent or even

more is called a new gazelle company.

Ghosting

Ghosting is definitely an illegal practice wherein corrupt industry makers create colluded trades to

always be able to affect a new adjust in the selling price of a stock.

Glide Path

The glide path is a method pertaining to conservative asset allocations for any goal date fund and is

based about the number of a lengthy time left towards the target date.

Global Depository Receipt (GDR)

This is actually a financial instrument used to raise funds in US us dollars as well as Euros. The ideawill be issued throughout greater than one country, pertaining to shares inside a foreign company.

Godfather Offer

A takeover offer made in very generous terms and also prices, thus which helps make it irrefutable

for that target company.

Goldbrick Shares

A stock conferring for the age-old adage, 'all which glitters isn't gold', with regard to even though itappears involving quality and worth, is at fact not so.

Golden Cross

This signifies a new stock crossover by simply damaging the resistance degree i.e. once the stock's

temporary moving average breaks higher than its long-term relocating average.

Gray List

This is a list of stocks in which can't be traded within with a bank's danger arbitrage division, due toyour undeniable fact that they are operating using the bank about matters of mergers as well as

acquisitions.


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Gray Market

This is definitely an unofficial industry which trades in recently issued shares, which are but to

become officially available on the stock exchanges.

Great Depression

The great Depression is actually a decade lengthy economic recession, that began on 29th October

1929 along with caused worldwide poverty, hunger, unemployment, and political unrest.

Greater Fool Theory

This can become a stock market theory which states that there will always be considered a bigger or

perhaps higher fool out there willing to acquire a burglar in a higher price from you inside the

future, even if you've bought the security nowadays unsure whether it's overvalued or even

undervalued. The purpose regarding this theory is that regardless how higher your stock purchasing

price is, you'll often acquire you in order to definitely sell it off to, with an even higher rate, giving

you a profit.

Green Investing

When investment activities focus on green objectives, just like all-natural power conservation,

alternative energy source discoveries, clean water and air technologies and other environmentally

oriented businesses, the particular investment method will be termed as green investing.

Green Tech

Green tech may end up being the term utilized to denote a sizable business that employs an greenproduction method as well as provide chain.

Greenmail

When a sizable block of the company's stock can be held with a threatening company and needs

being brought again by the business at high premiums to stay away from the takeover, your stock

repurchase will be referred in order to as greenmail.

Gross Spread

This may become the difference between your received underwriting price and the real publicly

offered cost with an issuing company.

Growth Stock

Also called glamor stocks, these stocks would become the stocks regarding the business that is

developing in a price significantly more than the market growth rate.

Gun Jumping

Jumping the gun is definitely an illegal practice that will involves the execution involving talk about

acquiring orders ahead involving the IPO may be approved through the Securities and Exchange

Commission (SEC).


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Gunslinger

These tend to be portfolio managers who are thus extremely focused on earning higher returns that

they turn out to be foolhardy and spend funds on very high danger stocks.



H-Shares

These would end up being the shares listed around the Hong Kong Stock Exchange and that come

beneath your purview of the Chinese Law. These are denominated in Hong Kong bucks and thus are

traded inside the same way as other equities.

Half Stock

This is actually either any typical stock or even a preferred stock that's denominated in a par value

of $50.

Hammering

A stock is said to become acquiring any hammering if investors and speculators indulge in the rapid

and concentrated sale associated with it, thinking that it is overinflated in the market.

Hanging Man

This is a candlestick pattern following an uptrend that will signifies a bearish industry sentiment.

Hard-Coded Stock

This is a company's unique stock symbol or ticker symbol that enables your investors to examine on

up about its share price, anywhere around the globe.

Headline Effect

Whether justified or not, this is the consequence of the negative information headline about the

company's stock or even the particular economy as getting a whole.

Heavy Industry

Industries with all the typical characteristics involving high original investments (capital),

substantial entry barriers along with reduced transportability tend to be termed as hefty industries.

Hedged Tender

A tender supply wherein an investor short sells his shares to become able to hedge the actual risk of

the actual tender not really likely through, is actually termed as being a hedged tender.

Held in the Opening


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A halt as well as restriction in order to trading any specific stock when the stock exchange opens, in

order to protect investors, is termed as held at the opening.

Held Order

A market order that requires prompt executions for you to fill a sudden request, is actually termed

like a held order.

Hiccup

This is surely an aberration to a bigger trend or maybe a short term disruption inside any longer

term strategy or even goal.

High-Frequency Trading - HFT

High frequency trading necessitates the use involving potent computers to transact as well as

execute a sizable number of orders in quite high speeds.

Himalayan Option

This can always be a mountain range choice which is based on the basket of securities, unlike a plain

vanilla alternative which has just one underlying security.

Historical Volatility - HV

Also referred for you to as statistical volatility, this is industry realized volatility of the monetary

instrument over the given time period regarding time. standard deviation will be generally utilized

to calculate the historical volatility of the security.

Hit the particular Bid

This phrase is used each time a broker agrees to offer a burglar alarm at the highest value with

which usually an additional broker is actually prepared to buy it for.

Holding the particular Market

There are generally a couple of meanings in order to this term. This particular phrase is actually

used to reference a new practice regarding putting pending orders on a security to assist keepholding the steady cost because associated with it within the market. Yet Another method to use this

phrase is to refer to the individual holding a broad industry index portfolio.

Hot IPO

Oversubscribed IPOs which have been in hot demand along with investors are classified as hot IPOs.

House Call

Also known as a new 'margin call', this can be an intimation to some consumer which his marginaccount balance features fallen under the constant maintenance requirement level.

Hybrid Market


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This can always be a blend regarding both, a computerized electronic trading market along with a

classic floorboards broker system.



Imbalance of Orders

Also known as an order imbalance, this can become a saying used when 1 sided orders are usually

received, i.e. a new lot of demand, absolutely no revenue and also vice versa. Generally there may

end up being many buy, offer as well as limit orders on the detailed stock nevertheless absolutely

nothing matching in which certain order around the stock exchange.

Impact Day

When a new firm constitutes a secondary providing of shares towards the public, in which typically

results inside a downward cost movement because of in order to extra supply, it truly is termed as

the impact day.

In Street Name

When the brokerage account holds securities in the title of the brokerage firm and not inside the

name with the real investor who's bought the security, it has been said that the asset continues in

order to be bought in street name.

Income Deposit security - IDS

This can become a security that will provides normal earnings to the safety holder, by simply

combining widespread stock with just about all the issuer's notes.

Income Stock

Income stocks are generally equity securities that will pay off steadily increasing dividends and offer

high yield in order to safety holders.

Index Divisor

This can be quantity without any mathematical rationale, is actually steady and can be also utilized

to compare items within the actual index, during any time period of time.

Index Hugger

Also known as closet tracker or pseudo tracker, an index hugger is a managed mutual fund that suits

its performance with the benchmarked index.

Indicated Yield

This can always be a rough forecasting technique, quoted as getting a percentage, calculated

through dividing the actual indicated dividend regarding the organization using its current discuss

price.


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Industry life Cycle

This is a theoretical explanation with the stages an industry will go through, from your time it comes

up with its 1st product, towards the duration of its eventual decline.

Initial Margin

Also referred to as 'the original margin requirement', this is really a security's obtain value

percentage that the investor must spend with regard to along using his very own cash as well as

marginal securities.

Inside Quote

Also identified as the inside spread, this really is the highest possible bid price and the lowest

feasible supply cost (ask price) for any certain safety among every one involving the market makers.

Insider Trading

When somebody who will be trading provides use of insider information, i.e. information that's

material and it is not necessarily available for the public with large, he is said to become indulging

inside the illegal activity associated with profiting by means of insider trading.

Interest Sensitive Stock

Any stock of a company which has a high financial debt load and is understanding of interest rate

changes, this kind of stock is actually known as an interest sensitive stock.

Intraday Intensity Index

This is a volume based indicator which depicts the every day flow of funds for any security. That

utilizes your substantial as well as lower range of the protection along with aims to follow the

activity involving institutional block owners.

Investing Sage

Like Warren Buffet, they're investors that are extremely well-informed and are recognized to

consistently beat industry as well as help to make abnormal returns via excellent stock research.



January Barometer

The January Barometer is a predictive device which usually postulates that will the market

movement for that entire year could be predicted from the movement of the S&P500 Index

throughout the month of January.

January Effect

A general increase in stock costs because of for you to purchasing pressures, seen in the month of


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January, can be called the January effect.

Jobber

This can be a slang for a industry maker and its utilization is actually limited to the London Stock

Exchange.

Joint Stock Company

An organization that will falls within between any partnership along together with a corporation on

the enterprise continuum as stockholders regarding joint stock companies tend to be liable for

company's debts.

Junior Security

When a burglar alarm ranks lower compared to some other securities, at the duration of staking

claims upon assets in the event involving liquidation, method . a junior security.



Key Performance Indicators - KPI

KPIs tend to be business particular indicators that are utilized to gauge the achievement of strategic

and also operational goals as well as may in addition be called important achievement indicators

(KSI).

Key Rate

This may be the chief curiosity price that will determines the particular bank's rates associated with

interest and also the costs regarding credit rating for that borrowers. discount rate as well as

Federal funds charge tend to be both key prices inside the U.S.

Killer Application

Also called the 'kill app', this is actually a buzzword pertaining to computer software programs

which surpass all involving its competitors.

Killer Bees

These tend to be firms that help a new organization throughout trouble to maintain takeover

attempts in bay, with just about all the use of defensive takeover strategies such as poison pills,

people pills, white knights, shark repellents, lobster traps, sandbags, whitemails, etc.



Laggard


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This is surely an underperforming stock as well as security, for it offers out lower compared to

typical returns, unlike the actual leader.

Large Cap - big Cap

When the organization includes a marketplace capitalization regarding more than $10 billion, the

business can be termed as significant cap; cap can be short for marketplace capitalization.

Law involving Huge Numbers

This can always be a statistical report that points too because the trial quantities increase, the

average may become the examples tends in direction of the particular imply regarding the whole

population. This particular implies that when a business grows, the prospective for it sustaining a

sizable percentage inside growth lessens.

Leasehold

This is surely an accounting term, utilized to classify the leased assets (operating lease not

necessarily money lease) of your business upon its balance sheet.

Legacy Hedge

This is a hedge in which provides price guarantees, because the hedge place is actually held over an

extended time period of your own time from the holding company.

Letter regarding Comment

This is really a letter, sent to some business by SEC, in reaction towards the company's filingregistration statement.

Leverage Ratios

These are the ratios used to get any glimpse to the company's monetary leverage, its techniques

regarding financing as well as the future ability to meet monetary obligations.

Leverage ETF

This is surely an ETF in which attempts in order to amplify the actual returns with an index throughusing financial derivatives along with financial debt instruments.

Limit Order

Buy restrict orders and sell restrict orders are generally limit orders positioned using a brokerage to

purchase as well as sell any set variety of shares in the predetermined value as well as more,

respectively. the order moment limit is also specified, right after which usually they will obtain

canceled.

Limit-on-Close Order

Unlike a set limit in open order, a limit about close order can become a limit order to buy or perhaps

sell a burglar in a market close, if it is trading a lot better than the actual limit price.


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Linkage

Linkages happen when an investor may acquire a burglar on any single monetary exchange then sell

it about another, but differs via arbitrage.

Liquidating Dividend

When the firm helps make payments to end up being able to its owners, through capital instead of

via earnings, it actually is known as liquidating dividend.

Liquidity Premium

This is the premium which investors demand for an illiquid asset, in which can not be easily

transformed for you to cash with out using a huge cost fall.

Listing Requirements

These are stock exchange standards that want being achieved by the company looking to get a new

listing.

Lockdown

This is really a period associated with time of the time when an employee of your public restricted

business is barred coming from selling his company's stock for a specific period of time involving

time.

Long Squeeze

As in opposition to any brief squeeze, a extended squeeze will end up being the promoting stress

that will builds up on long holders in the stock whenever a sudden cost drop incites further revenue

as well as price drops.

Low Volume Pullback

A technical correction with the stock value that signifies that the trend just isn't really reversing yet

is just weak credited to low trading volumes.



Macro Hedge

This is actually a fantastic investment strategy which is used to eliminate or perhaps decrease the

chance of an entire portfolio, i.e. it advocates a situation that will offsets the complete portfolio.

Mad Hatter

This term refers to a CEO or perhaps company head or even a new total managerial team which

includes suspect abilities to lead any company.


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Maintenance Margin

Also referred in order to as 'minimum maintenance' as well as 'maintenance requirement', this is

your minimum equity quantity which includes to become compulsorily maintained in a margin

account.

Management Buy-In (MBI)

A management buy-in entails an outsider business or perhaps team purchasing ownership stake

inside an undervalued (due for you to management incompetence) business and also replacing the

whole management team using effective and capable managers of their own.

Manufactured Payment

This is a payment created by the borrower of your stock into a lender of your stock, equivalent for

the dividend payment declared around the stock.

Market Basket

A market basket may always be the clubbing together of items and securities inside this kind of

method that they replicate the market performance and could be used to monitor things such as

inflation, prices and performance levels.

Market Capitalization Rule

This is a standard worth rule set from the NYSE inside 2004, which stated in which companies must

maintain a minimal worth of $25 million more than 30 consecutive days for you to carry on their

particular listing with the stock exchange.

Market is actually Up

This will end up being the complete opposite of 'market can be down' as well as 'market will be off'

as well as is actually a common phrase utilized to denote the industry segment or perhaps index

which is trading greater than your previous close.

Market Overhang

This is an observational trend in which shows substantial offering pressures in the marketplace aswell as may final for weeks, weeks or even longer. This will be generally triggered by simply

institutional investors holding significant reveal blocks that will wish in order to divest.

Market Swoon

A negative investor industry sentiment in which triggers a general decline within the general price

of the actual stock companies are called a new industry swoon. The first signs of your industry

swoon arrive inside the type of significant price drops in indexes such since the DJIA (Dow Jones

Industrial Average).

Market-With-Protection Order

If there exists a hefty cost movement throughout a good thing right after an investor places his


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order, he can cancel his order as well as re-submit it as a limit order, placed around the current

marketplace price. This particular protective measure can be termed as becoming a 'market with

protection order'.

Marlboro Friday

This is a term coined for the Friday regarding April 2nd 1993, when Philip Morris (maker regarding

Marlboro cigarettes) caused the $10 billion industry cap loss inside a single day, by seeking straight

into making an announcement to chop product costs so that it could compete with generic

cigarettes.

Mean Return

Also referred in order to as expected return throughout safety analysis, this truly is your expected

worth as well as suggest return of every 1 of the individual investments inside a portfolio. Inside

capital budgeting terminology, mean return stands for your mean value of the probability

distribution regarding feasible returns.

Member Short-Sales Ratio

This can always be a measure to gauge the sentiment involving industry specialists by simply

segregating the actual 'pro' trades from your noise trades involving less informed public traders.

This kind of ratio compares your quantity of short sales produced by NYSE members using the total

quantity of short revenue transacted around the exchange.

Merger Deficit

When the company makes use of funds raised through new stock problems to purchase the stock ofone other company, because of to be able to that the actual total reveal richesse worth utilized to

buy another business is actually lower than the actual total value of equity bought, there has been

said being a new merger deficit.

Merger involving Equals

When two equal sized firms merge with every single other in order to form a new single company,

along with each side's shareholders surrendering their own shares and also receiving freshly issued

securities with the freshly formed firm in return, it is actually called the merger involving equals.

Mergers along with Acquisitions

Mergers as well as acquisitions, M&As, can be a general term accustomed to refer for the

consolidation associated with a couple of companies for you to form 1 company.

Micro Hedge

An investment technique which entails taking an offsetting place to remove your risk of your single

asset is actually known as any micro hedge.

Minority Interest

When just about any investor as well as organization holds the under 50 percent, significant yet non-


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controlling fascination in the company, he explained to become holding a new minority fascination in

the company.

Minsky Moment

After a long-lasting period involving time associated with industry speculation, whenever a market

fails as well as falls, the actual phenomenon will be termed as getting a Minsky moment.

Misappropriation Theory

This is a type of insider trading wherein confidential facts are stolen from a company and also

trading is completed based on the 'misappropriated insider knowledge'.

Monoline

This can become a saying used to obtain a enterprise in which picks one collection along with

focuses within simply that one particular economic area.

Mosaic Theory

Mosaic theory is surely an analytical technique in which security analysts use to assemble details of

a company.

Multiples Approach

This is a theory which states that will any firm's valuation can become achieved according to

another, if the two firms are comparable. The idea relies on the premise that similar assets ought to

sell with similar prices.



Naked Option

Naked alternatives (naked place as well as naked call) are usually option positions held with a buyer

as well as seller, with out holding the particular underlying security.

Naked Position

As opposed to the covered position, a naked place (naked long or even naked short) is surely an

unhedged security position, i.e. the situation uncovered through industry risk.

Nano Cap

Even smaller than the actual usual micro cap, a new nano cap is really a tiny company having a

lower than $50 million market capitalization.

Narrow Moat

An economic moat opposite of your wide moat, a new narrow moat represents any slight competitive


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advantage that a firm enjoys more than additional competing firms in the exact same industry.

Nasdaq Composite Index

A weighted index associated with a lot much more than 3000 widespread equities trading around the

Nasdaq stock exchange, which uses marketplace capitalization as weights, can be referred to as

Nasdaq composite index.

Near Term - NT

Another term for short term, this may be utilized to recommend stocks that want being held for

short periods.

Negative Carry

This can end up being a situation, complete opposite of positive carry, that will arises once the cost

involving financing a burglar or even futures position, far exceeds the yield earned via it.

Negative Obligation

The the complete opposite of affirmative obligation, a negative obligation is actually when NYSE

specialists who are supposed to play marketplace makers, remain on the sidelines along with refrain

from in the role of principal when there can be certainly less market demand or supply, to fit

pending orders.

Neglected Firm Effect

This may be the phenomenon regarding abnormally substantial returns upon stocks that arerelatively less known, credited for you to higher risks reducing liquidity.

Net Curiosity Margin Securities - NIMS

These are securities that allow holders to acquire access to the cash flows that outcome from

securitized mortgage loan pools.

Net Long

Opposite of the net brief position, a new net long place entails an investor getting much morelengthy positions when compared with brief positions in the marketplace or perhaps his portfolio.

Net Volume

This can always be a security's uptick volume minus its downtick volume over any period of energy

and is actually also measured from the 'money flow index'.

Net-Net

This can be a worth investing technique released by simply Benjamin Graham which makes use ofmerely the net present assets for you to value a new company.

Nil-Paid


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This represents a burglar which is tradeable despite having incurred zero original price to the seller.

No-Par Worth Stock

This is an issued stock that has absolutely no par worth specification, neither in the company's

content articles involving incorporation, nor around the stock document itself.

NYSE Composite Index

This can be a great indicator involving general industry strength because of it incorporates just

about all typical stocks detailed on the NYSE and furthermore the 4 subgroup indices, specifically

industrial, transportation, utility and also finance throughout its calculation.



Off Board

This can be a stock trade that will possibly does not involve a new stock that's traded on the main

stock exchange (over-the-counter stock) or perhaps involves the stock that's outlined on the

significant exchange however will be still traded over-the-counter in between 2 institutions or even

an institution and its customer.

Oil ETF

This class associated with exchange traded funds purchase oil along with gasoline companies.

One To be Able To Many

A one-to-many platform can always be a trading platform where many consumers and also sellers

interact with simply one, sole marketplace operator.

One-Cancel-All Order

When a amount of restrict orders are placed using one business stock with almost all the caveat that

all other people obtain canceled when one gets filled, can be known as the one-cancel-all order.

One-Way Market

This can become a typical slang utilized for any market that is simply shifting in one direction with

power as well as little or no resistance.

Operating Netback

This is a non-GAAP measure of oil and also gasoline sales, net of royalties, production along with

transportation expenses.

Opt-Out Vote

This is truly a shareholder vote taken up choose in whether or even not specific takeover laws and


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also regulations want being waived to accommodate a new specific favorable corporate action.

Option Premium

This can be either the present price of an choice that's yet to become able to expire or is the

particular earnings received simply by an option writer or even seller, for selling an alternative

contract to a different party.

Oracle regarding Omaha

This is truly a nickname earned by the great investor Warren Buffet, for his market beating stock

picks, investment strategies as well as asset management fundas.

Order Protection Rule

Also known because the 'R 611' rule or even the 'trade-through rule', the order protection rule is

truly a regulation NMS provision which states that investors receive an execution price that's

equivalent towards the costs quoted for that safety about another exchanges.

Order Splitting

The Tiny Order Execution System (SOES) qualifies orders to become automatically executed. Order

splitting involves splitting off larger orders in to smaller ones in which fit in with all the SOES.

Over-The-Counter Bulletin Board OTCBB

This is an electronic trading services which is offered along with regulated by NASD (National

Association associated with Securities Dealers), that exhibits real-time quotations, last-sale costs andvolume info more than the actual counter. OTCBB traded stocks have the 'OB' suffix.

Overbought

This can become a technical analysis term, opposite to oversold, which is utilized for an asset which

includes unjustifiably substantial rates that are driven by excessive demand and not by the company

fundamentals.

Overreaction

This is a industry hypothesis that's inconsistent with the efficient industry hypothesis, for this states

which investors along with traders could react disproportionately to new info on a security.

Oversubscribed

Contrary to always be able to getting undersubscribed, the actual term oversubscribed relates to a

situation in which the public demand for an IPO way exceeds the real variety of shares issued.

Oversubscription Privilege

This is a particular right or privilege conferred about present shareholders once the business is truly

a legal rights or warrants offering.


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Ovoboby

This can end up being a industry issue exactly where there's excessive upward strain on Treasury

yields thanks to the marketplace becoming considerably overbought, overly bullish and overvalued.



P/E 10 Ratio

A price earnings ratio is really a company valuation ratio which is calculated simply by dividing any

company's marketplace value per share from the company's earnings for each share. P/E 10 signifies

in which a company's stock is trading with 10 x the value of the particular company's earnings for

each share.

Pac-Man Defense

This can end up being a defensive tactic against hostile takeovers that has the specific firm turning

around and also attempting to acquire the business that's attempting the actual hostile takeover.

Painting the actual Tape

This is an illegal motion taken through market manipulators to trigger a price movement which is

favorable with their positions as well as gains all of them hefty profits.

Paired Shares

Also known as Siamese shares, they're stocks of a couple of various companies, frequently having

the identical management that can end up being bought as you unit along with appear using one

certificate.

Paper Millionaire

An individual that has large numbers of paper earnings since his portfolio involving marketable

assets provides suddenly been bid as significantly as escalating prices.

Parity Price

Also referred to as conversion parity cost or marketplace conversion price, a parity value is really a

asset price that's straight connected to yet another price.

Pass-Through Certificate

These are fixed earnings securities based about the undivided fascination pool regarding federally

insured mortgages, which are put collectively from the Government National Mortgage Association

(Ginnie Mae).

Pathfinder Prospectus

This is actually a pre-prospectus statement providing a photo in the company's financial condition,


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supplied to some restricted team involving potential underwriters and institutional investors to test

your waters before an IPO filing.

Payment with regard to Order Flow

This may end up being the compensation or even payments received by a brokerage firm with regard

to directing the orders to different parties, regarding execution.

Peer Perform

A peer carry out is truly a neutral assessment indicator that predicts that a security will relocate

collection with the securities associated with various other similar companies.

Penny Stock

A penny stock is truly a stock along with reduced market capitalization and also low price, that's

usually traded outside regarding the main stock exchanges.

Performance Drag

If transaction expenses negatively influence your performance of an investment, the particular

phenomena is actually known as a new performance drag.

Piggyback Warrants

These tend to be extra warrants in which could be acquired with just about all the exercise

associated with primary warrants and work as sweeteners for you to prompt additional investment

inside the company.

Pink Sheets

This is a daily publication that offers details in OTC stocks (like bid inquire prices, industry makers,

etc.) and it is compiled by the National Quotation Bureau. Initially printed upon pink paper, as well

as hence the actual name, pink sheet listings end with most the suffix 'PK'.

Pitchbook

This is a revenue e-book compiled by a fantastic investment bank or perhaps firm, using the aim ofoffering its items and also concerns along with generating new customers by providing them the

crucial points of its main attributes.

Plus Tick

Also referred to end up being able to as an 'uptick', a in addition tick is really a designation provided

to some stock which is trading higher now as in contrast in order to its previous sale.

Poison Pill

This is really a hostile takeover discouragement strategy. Your two sorts of poison pills are: flip-in:

enables active shareholders to purchase shares in low cost thus generating acquirer's talk about

weaker through money dilution, and flip-over: enables current shareholders to purchase acquirer's


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shares in discounted rates submit the particular merger.

Pot is actually Clean

Also known as 'fully subscribed', this is truly a slang with an underwriter which includes were in a

position to offload almost all involving its accessible concerns of the public offering.

Power Ratio

This measures the media company's revenue performance in contrast for you to its audience share.

Price Continuity

This can always be a liquid marketplace characteristic in which shows that the cost actions between

transactions are generally minimal.

Price Talk

This is truly a dialogue within the particular investment community regarding the correct price

suitable with an upcoming safety issue.

Pricing Power

This is a term found in conjunction using the value elasticity associated with demand as well as

suggests the consequence on the item amount demanded having a organization building a alter

within the product price.

Profit Warning

A gain warning is actually a company's intimation that it is income aren't likely to meet the

expectations associated with analysts.

Pullback

This is a brief reversal (fall inside price) inside a prevailing upward trend or perhaps peak which is

only a slight pause throughout upward momentum and not a cause of concern.

Pure Play

This term symbolizes a new company that is just in one profession as well as its stock prices are

highly correlated using the outcomes of one investing theme or strategy.

Put Warrant

It can be just a warrant (as opposed to an option) that offers your holder the proper for you to sell an

underlying discuss in an agreed price, about or just before any predetermined date.

Puttable common Stock

This can be a common stock which offers its holders the proper to sell it off again towards the

company with a predetermined price.


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QOQ

QOQ is the acronym pertaining to quarter-on-quarter.

QQQQ

QQQQ will become the ticker symbol for that Nasdaq 200 trust.

QTD

QTD will become the acronym regarding Quarter to end up being able to Date.

Quadrix

A Quadrix divides the particular 100 variables which are accustomed to worth a new stock in to 7

principal classes namely, momentum, quality, value, monetary strength, forecasted earnings,

performance, and also volume.

Qualified Dividend

Qualified Dividends tend to be ordinary dividends that are taxed in a lower long-term capital gains

tax.

Qualifying Disposition

Qualifying Disposition is a transfer, sale or exchange involving stock that is obtained through any

qualified stock alternative incentive plan.

Quarterly Earnings Report

Quarterly earnings document will end up being the document with the performance of a business

which can be provided each 3 months.

Quote

A quote may become the last traded price of the talk about or a commodity



Random Walk Theory

According for you to this theory, stock exchange costs consume a random path independent ofvarious other stock value distributions along with can't be predicted using historical trends data.

Ratings


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These are usually evaluations of a corporate or municipal bond, based around the issuer's ability to

honor them principal along with curiosity payments. That They range coming from AAA (High

Date post:	03-Jun-2018
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Stock Terms - Glossary of Stock Market Terms and Definitions

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