An investment strategy guided by the real underlying value of a company and its long-term growth potential, rather than short-term market fluctuations.
Value investors aim to identify and invest in undervalued stocks by focusing on fundamental analysis, inspired by influential figures such as Benjamin Graham and Warren Buffet.
Virt-x was a pioneering electronic exchange based in London, later acquired by SWX Swiss Exchange, notable for its integration of advanced trading technologies.
The rights of shareholders to vote on major corporate decisions, such as electing board members and approving significant corporate actions. This entry explores types, applicability, historical context, and related terms.
An in-depth exploration of Watered Stock, a term describing artificially inflated shares in business. Learn about its history, key events, mathematical models, importance, applicability, and related terms.
A detailed exploration of the concept of Weighted Average Shares, which represents the average number of shares outstanding during a specific period. This term is crucial in financial analysis and accounting for accurate earnings per share calculation.
Explore the concept of a weighted index, a crucial financial metric that assigns different weights to various securities based on factors like market capitalization or price.
An in-depth exploration of the Warsaw Stock Exchange (WSE), the main stock exchange in Poland. Covering historical context, operations, key events, significance, and more.
A Zero Cost Collar is an options trading strategy that can offer downside protection at the expense of limited upside potential. By simultaneously purchasing a put option and selling a call option, investors can mitigate their outlay and potentially make the strategy cost-neutral.
An in-depth exploration of the concept 'Against the Box' in finance, where a short sale is made by the holder of a long position in the same stock, often utilized for hedging or speculative purposes.
A comprehensive guide on Auction Exchanges, centralized securities trading markets where securities such as equities, bonds, and options are traded in an orderly manner through security brokers.
A Bear Raid is an attempt by investors to manipulate the price of a stock downward by selling large numbers of shares short. Bear raids are illegal under Securities and Exchange Commission rules.
An in-depth look into why the New York Stock Exchange (NYSE) is commonly referred to as the 'Big Board'. This entry explores the historical context, significance, and evolution of this iconic financial term.
In finance, a block refers to a large quantity of stock or a large dollar amount of bonds held or traded. Typically, 10,000 shares or more of stock and $200,000 or more worth of bonds are considered a block.
Comprehensive explanation of 'Bottom' as a support level in market prices, including its significance in various contexts such as general markets, economics, and securities.
A Bottom Fisher is an investor who seeks opportunities in investments that have fallen to their lowest prices and are expected to bounce back. This strategy sometimes involves investing in bankrupt or near-bankrupt firms.
A bull market signifies a prolonged period of rising prices in the market for assets such as stocks, commodities, and bonds, reflecting investor confidence and inducing a self-sustaining cycle of speculation and investment.
An overview of the CAC-40, a capitalization-weighted price index of the 40 most actively traded shares on the Paris Bourse. This entry explores its structure, significance, historical context, and comparisons with other indices like the Dow Jones Industrial Average (DJIA).
A comprehensive guide to understanding Call Premium, its significance in options trading and bonds, including calculation, examples, and related terms.
Circuit breakers are measures instituted by major stock and commodities exchanges to temporarily halt trading during significant market declines. They aim to prevent market free-fall by balancing buy and sell orders and allowing the public to catch up on news.
A comprehensive understanding of Class A and Class B shares, including their differences in voting rights, dividend preferences, and other unique characteristics.
A clearinghouse is an association or organization that facilitates the exchange of checks, drafts, or other forms of indebtedness among its members, aiming to settle balances with minimal inconvenience and labor.
Closing Price or Closing Quote is the price of the last transaction of a trading day on an organized securities exchange, widely used for stock valuation.
A comprehensive guide to understanding the role, functions, and intricacies of a Commission Broker, who executes trades of stocks, bonds, or commodities for a commission.
Common stock equivalent refers to securities such as preferred stock, convertible bonds, or warrants that can be converted into common stock, potentially diluting the equity of existing common shareholders.
Conversion Parity is a financial term related to convertible securities and refers to the price at which convertible securities (like bonds or preferred shares) can be converted into common stock.
A comprehensive analysis of CROSS securities transactions, where the same broker acts as an agent for both buyer and seller, along with legal implications and operational aspects.
A detailed explanation of CROWD, a term referring to a group of exchange members with specific roles congregated around a trading post, including specialists, floor traders, odd-lot dealers, brokers, and more.
A comprehensive guide to Cumulative Dividends including their definition, types, examples, historical context, and applicability in finance, particularly associated with Cumulative Preferred Stock.
Curb Exchange, historically known as the American Stock Exchange (AMEX), refers to the earlier forms of stock trading conducted literally on the curbs outside the stock exchanges. This progressed into highly organized trading platforms and eventually was absorbed into modern stock exchanges.
A cyclical stock is a type of equity that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. Examples include housing, automobiles, and paper. Conversely, stocks of noncyclical industries, such as food, insurance, and drugs, are less directly affected by economic changes.
The daily trading limit is the maximum allowed price fluctuation for commodities and options within a single trading day, with restrictions to curb extreme volatility in the market.
The Date of Record is the date on which a corporation utilizes its list of stockholders to mail out dividend checks, typically two days after the ex-dividend date. Also known as the record date, this is a crucial concept in dividend distribution.
DAX, or Deutscher Aktienindex, is a stock performance index that includes dividends and consists of the 30 most actively traded blue chip stocks on the Frankfurt Stock Exchange.
A day order is a directive to buy or sell securities that expires unless executed or canceled on the day it is placed. This article delves into the definition, examples, and differences of a day order in comparison to other order types such as Good-Till-Canceled Orders (GTC).
A thorough exploration of Day Traders—individuals or professionals who buy and sell financial instruments within short time frames, typically within the same trading day.
Delisting refers to the removal of a security's listing on an organized stock exchange such as the New York Stock Exchange due to failure to maintain minimum listing requirements.
A comprehensive guide on the Dividend Rollover Plan, a trading strategy centering on the timing of stock purchases and sales around ex-dividend dates to collect dividends and aim for small trading profits.
A detailed explanation of the Dow Jones Industrial Average (DJIA), the most widely followed benchmark of stock market performance, including its components, history, and impact.
Dow Theory posits that a major trend in the stock market must be confirmed by a similar movement in both the Dow Jones Industrial Average and the Dow Jones Transportation Average.
Earnings Per Share (EPS) is a critical financial metric used to evaluate a company's profitability by determining the portion of its profit allocated to each outstanding share of common stock. This metric is essential for assessing a stock's outlook in the market.
Deep dive into the world of electronic trading, where stocks and options are traded via the Internet. Learn about the process, advantages, types, and much more.
Exchange-Traded Notes (ETNs) are senior unsecured debt instruments that track the performance of a specific index, offering a unique investment option with both returns and risks tied to the creditworthiness of the issuer.
A comprehensive overview of exempt securities, including definitions, types, regulatory exemptions, examples, historical context, applicability, and related terms.
A 'Fail to Deliver' situation occurs when the broker-dealer on the sell side of a contract has not delivered securities to the broker-dealer on the buy side. This situation is often due to the selling customer failing to provide the necessary delivery.
A Fill or Kill (FOK) order is an instruction to buy or sell a security immediately in its entirety, or else the order is canceled completely. These orders are typically used to ensure that transactions do not suffer delays or partial completions.
A Firm Quote in the securities industry is a round-lot bid or offer price of a security stated by a market maker, which is not identified as a nominal or subject quote that requires further negotiation or review.
The Flash Crash refers to the sudden 998.5-point drop in the Dow Jones Industrial Average (DJIA) on May 6, 2010, marking the biggest one-day decline in the average's history. It was caused by a single trade at a hedge fund that triggered a cascade of computerized selling.
Going Public: The process by which a private company first offers its shares to the public, transitioning to public ownership and compliance with regulatory requirements.
A Good-Till-Canceled (GTC) order is a brokerage customer's order to buy or sell a security, usually at a particular price, that remains in effect until executed or canceled. This article covers its definition, types, examples, historical context, and comparisons with other orders.
A Graveyard Market is a bear market where investors who sell face substantial losses, while potential investors prefer to stay liquid until market conditions improve.
An in-depth look at the concept of 'Hammering the Market,' a term used to describe the intense selling of stocks by speculators who believe prices are inflated and the market is about to drop.
Explore the intricacies of high-tech stocks, companies involved in fields such as computers, semiconductors, biotechnology, robotics, or electronics, known for above-average earnings growth and volatile stock prices.
A thorough exploration of the concept of 'Historic Low', the lowest price paid for a security over a specified period or since it began trading. Understand the significance, applications in investment strategy, and related terms.
Hot issue refers to newly issued stocks that are in great public demand, often resulting in a significant price increase during their initial public offering (IPO) due to a higher demand than the available shares.
Hybrid investments or securities combine characteristics of multiple asset types, such as bonds and derivatives, to offer unique risk-return profiles and benefits.
A 'Leader' in financial markets refers to a stock or a group of stocks that are at the forefront of an upsurge or downturn. It also applies to products that hold a large market share.
Comprehensive overview of the minimal tests a company must meet for its stock to be listed on various stock exchanges, with a focus on the New York Stock Exchange (NYSE) which has the most rigorous requirements.
A Market Letter is a newsletter provided to brokerage firm customers or written by an independent market analyst, registered as an investment adviser with the Securities and Exchange Commission, who sells the letter to subscribers.
A comprehensive examination of a Member Firm, a brokerage firm holding membership on a major stock exchange through an employee's name, its implications, historical context, and related terms.
A momentum player is 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.
An overview of NASDAQ, the computerized system providing brokers and dealers with price quotations for securities traded over the counter and New York Stock Exchange-listed securities.
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