An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing shares in a foreign company traded on U.S. financial markets. ADRs offer U.S. investors a way to invest in overseas companies without dealing with foreign brokerage firms.
An order to buy or sell a security within the final 30 seconds of the trading session. Brokers cannot guarantee that these orders will be executed.
A strategic investment approach where an investor lowers the average price paid for a company's shares by purchasing additional shares as the price decreases.
The price at which a market maker is willing to buy shares, usually slightly lower than the market maker's offer price.
A blue-chip stock represents a national company renowned for its robust profit growth, consistent dividend payments, quality management, and top-tier products and services. The term 'blue-chip' is derived from the color of the most valuable gambling tokens.
Daisy chain refers to the buying and selling of the same items multiple times, often to artificially inflate trading activity. Commonly associated with stocks and shares, the term describes a practice where the same items are included in sales figures multiple times.
Delayed opening refers to the postponement of the start of trading in a stock until a gross imbalance in buy and sell orders is overcome. This is often necessitated by a significant event such as a takeover offer.
A method of buying and selling stocks around their ex-dividend dates to collect the dividend and potentially make a small profit on the trade.
A down tick occurs when a security is sold at a price lower than its most recent preceding sale price. This event is also referred to as a 'minus tick.'
An Electronic Communication Network (ECN) is a digital system that connects major stock brokerages and individual traders so that they can trade directly without needing to go through a middleman.
The terms 'X' and 'XD' are symbols used in newspapers and financial reports to signify that a stock or bond is trading without its respective dividend or interest.
Ex-rights refers to the period in which a stock is trading without the value of its newly issued rights attached. This typically happens after the record date for the rights issue, when new shares are offered to existing shareholders.
A situation where the broker-dealer on the buy side of a contract has not received delivery of securities from the broker-dealer on the sell side, leading to non-payment for the securities by the buyer.
A Fill or Kill (FOK) order is an order to buy or sell a particular security that, if not executed immediately, is canceled.
Floating securities refer to securities that are actively traded or outstanding in the market, often bought for quick profits or persistently remaining unsold after issuance.
A full-service broker is a financial professional who offers a wide range of services to clients, including investment advice, research, and portfolio management. This contrasts with a discount broker, who typically only executes trades.
In technical analysis of the stock market, 'Head and Shoulders' is a chart pattern that analysts utilize to predict a reversal in the trend of a security's price. Typically, the pattern appears as three peaks: the initial and last peaks are the shoulders, and the highest peak in the middle is the head.
The Hong Kong Stock Exchange (SEHK) is a primary marketplace for listed securities in Hong Kong, established in 1947. It serves as a central hub for the trading of a variety of financial instruments and houses the leading market indicator, the Hang Seng Index.
In financial markets, a long position refers to the purchase of a security, commodity, or currency with the expectation that its value will increase over time. This term is often used in the context of stock trading, futures contracts, and foreign exchange markets.
The largest of the four stock exchanges in Spain, the others being located in Barcelona, Bilbao, and Valencia. All exchanges now use a centralized settlement system for trading and clearing.
A trader in the stock or commodities market who identifies a trend in the price movement of a security and rides the trend as long as it is profitable.
Painting the tape is an illegal practice in stock market manipulations, where traders create artificial trading activity to deceive other investors. This leads to unwarranted price movements and can lure unsuspecting investors into making trades based on fabricated market interest.
A round lot refers to the standard quantity of securities or commodities that are traded on an exchange. For stocks, it typically means 100 shares or any number that is easily divisible by 100, while for bonds, it is generally $1,000 or $5,000 par value.
A scale order is an investment strategy where a specific quantity of shares is bought or sold incrementally at predefined price intervals to average the purchasing or selling price over time.
**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 stockjobber is an outdated term that refers to a professional trader who buys and sells stocks for their own account, not for clients. This term was more commonly used in historical contexts related to stock trading.
An uptick indicates that the latest trade in a stock is at a higher price than the previous trade. A zero-plus tick is a trade at the last price with the preceding different price registered as an uptick.
Volume can refer to the total number of stock shares traded, a set of periodical issues, or the amount of space occupied in three dimensions.
The term 'When Issued' (WI) refers to a transaction made conditionally on the basis that a security, although authorized, has not yet been issued or made available for trading.
