Pricey refers to products or services offered at prices at or near the top of what the market will bear, or in investment terms, offering or bidding prices that are significantly above or below the current market value.
Primary Earnings Per Share (EPS) is a commonly used metric in financial analysis that measures the profitability of a company by indicating how much profit has been allocated per outstanding share of common stock.
A profit-taking strategy is a method employed by investors and traders to sell an asset and secure profits after it has achieved a predefined target price.
A public limited company (PLC) is a type of company under UK, Indian, and certain Commonwealth countries' law which is publicly traded and operates with limited liability.
A public offering involves inviting the public to apply for a new issue of shares or other securities, typically through advertisements in the national press and at a price fixed by the issuing company.
The phrase 'Put to Seller' is used when a put option is exercised. The option writer is obligated to buy the underlying shares at the agreed-upon price.
A quotation is a commercial statement detailing the price of an item, provided either as an answer to an inquiry or in the context of stock market activities.
The Random Walk Theory posits that the movement of stock and commodity futures prices is inherently unpredictable, given that past price movements cannot accurately forecast future price trends.
The theory that financial market prices move without any memory of past movements, suggesting that their movements do not follow any predictable pattern.
A retirement fund is a sum of money specifically reserved by an organization for retiring employees. The investment of retirement funds is increasingly significant in the stock market and is regulated by federal laws such as the Employee Retirement Income Security Act (ERISA) of 1974.
Traders in financial markets who engage in high-frequency trading, dealing very frequently for small gains and may hold a position for only a few minutes.
A secondary offering, also known as a secondary distribution, is the sale of new or closely held shares of a company by investors, usually institutions, who are selling off their positions entirely or part of it.
A sector refers to a distinct part of the economy, stock market, or specific division in computer storage, each sharing common characteristics.
Organized, national exchanges where securities, options, and commodities futures contracts are traded by members for their own accounts and for the accounts of customers.
Selective Credit Controls represent the ability of the Federal Reserve Board (FRB) to establish specific terms and conditions for various credit instruments, particularly affecting the trading of securities in the stock market through margin requirements.
A selling climax refers to a sudden plunge in security prices when investors, driven by panic, simultaneously decide to dump their holdings. This event can sometimes signal the bottom of a bear market, after which the market may start to rise.
Selling short against the box is a strategy wherein an investor sells a stock they already own but have kept in a brokerage firm's safekeeping, known as the 'box,' to defer capital gains to the following tax year.
Short interest represents the total number of shares of a stock that have been sold short but have not yet been repurchased or closed out. It provides insight into potential market sentiment and investor speculation.
Short selling is a trading strategy where an investor borrows shares and sells them on the open market, planning to buy them back later for less money.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a sudden surge in buying and even higher prices.
A stock in which there is little investor interest but has significant potential to gain in price once its attractions are recognized. Sleepers are most easily recognized in retrospect, after they have already moved up in price.
**Soft Spot** refers to a minor weakness in selected stocks or stock groups within a generally strong and advancing market. It indicates areas that are underperforming relative to the broader market trends.
A person who applies for shares in new issues in anticipation of selling them at a higher price once trading begins.
The Standard & Poor's Index, widely known as the S&P 500, is a broad-based measurement of changes in stock-market conditions based on the average performance of 500 widely held common stocks.
A stock represents ownership in a company and constitutes a claim on part of the company's assets and earnings. Stocks can come in diverse forms such as fixed-interest securities or ordinary shares.
A marketplace for the sale and purchase of securities, where prices are determined by the forces of supply and demand. Stock exchanges facilitate capital raising for public companies, governments, and other entities, while providing liquidity for investors.
The stock market is a complex network of exchanges and investors engaged in buying, selling, and issuance of shares from publicly held companies, facilitating capital growth and wealth building.
Stock rights, also known as subscription rights or warrants, are financial instruments that give existing shareholders the right, but not the obligation, to purchase additional shares of a company at a predetermined price before a specified expiration date.
A stock split increases the number of a corporation's outstanding shares while making the stock more marketable, without altering shareholders' equity or the overall market value at the time of the split.
A stock symbol, also known as a trading symbol, is an abbreviation (typically one to four letters) that uniquely identifies publicly-traded companies on stock exchanges.
Stock transfer refers to the process of transferring the ownership of stock or shares from one person to another. It's a critical mechanism in corporate finance that enables the buying and selling of company shares in the stock market.
Stock valuation is the process of determining the intrinsic value of a company's stock, which helps investors make informed decisions about buying, selling, or holding shares.
A stop-loss order is a directive given by an investor to a broker to sell a financial instrument, such as a stock, when it reaches a specified price point in order to cap the investor's loss.
Suspended trading refers to the temporary halt in trading of a particular security, usually in anticipation of a major news announcement or to correct imbalances in buy and sell orders.
To speculate, usually with the knowledge that the investment is highly risky, often in the context of buying securities.
Taking a position refers to the act of buying and holding stock in a company for the long term or to gain control, and can relate to holding long or short positions in stocks or bonds.
A versatile term used in various contexts, referring to the service that reports prices and transactions on exchanges, a news wire service, or a magnetic computer storage medium.
An upward or downward price movement in a security's trades. Technical analysts watch the tick of a stock's successive up or down moves to get a feel of the stock's price trend.
A ticker refers to the system that produces a continuous report of trading activity on stock exchanges, also known as ticker tape. This includes displaying stock symbols, the latest prices, and trading volumes on computer screens.
A ticker tape traditionally referred to the paper output of a stock ticker machine, which showed stock symbols and prices but now generally refers to the digital displays providing real-time stock prices.
A 'tip' encompasses two primary interpretations: a gratuity given for exceptional service and a piece of valuable information in investment contexts.
Topping out is a term used in finance to denote the point at which a market or security is at the end of a period of rising prices and is expected to either remain stable or decline. This term is often associated with market peaks and potential future downturns.
A trading limit, also known as a fluctuation limit, is the maximum amount that the price of a commodity future, option, or listed security may fluctuate during a trading session.
In financial markets, a trading unit refers to the standard number of shares, bonds, or other securities that is generally accepted for ordinary trading purposes on exchanges.
The term 'Turkey' in finance refers to a disappointing investment. It may be used in reference to a business deal that went awry, to the purchase of a stock or bond that dropped in value sharply, or to a new securities issue that did not sell well or had to be sold at a loss.
A favorable reversal in the fortunes of a company, a market, or the economy at large. Stock market investors speculating that a poorly performing company is about to show a marked improvement in earnings might profit handsomely from its turnaround.
An undervalued security is one that is selling below its liquidation value or the market value that analysts believe it deserves. Factors for undervaluation may include an unfavored industry, lack of company recognition, or an erratic earnings history.
The term 'Unit of Trading' refers to the normal number of shares, bonds, or commodities that constitute the minimum unit of trading on an exchange.
Unregistered stock, also known as letter stock, refers to shares of a company that have not been registered with the Securities and Exchange Commission (SEC) and cannot be traded freely on public stock exchanges.
Upside potential refers to the amount of upward price movement an investor or an analyst expects of a particular stock, bond, or commodity.
An uptrend refers to the general upward direction in the price of a stock, bond, commodity futures contract, or overall market, characterized by higher highs and higher lows over a period.
Value Investment is an investment strategy that focuses on the underlying real value of a company and its long-term growth potential rather than short-term market fluctuations.
Voting stock refers to shares in a corporation that entitle the shareholder to participate in voting on matters such as electing the board of directors, mergers, acquisitions, and other significant corporate policies.
A Wallflower stock is a stock that has fallen out of favor with investors and tends to have a low price-earnings ratio, indicating reduced market interest and potentially undervaluation.
Yo-Yo Stock refers to stock that fluctuates in a volatile manner, rising and falling quickly like a yo-yo. This type of stock exhibits rapid and unpredictable changes in value within short periods.
