An overvalued stock is a stock whose current price does not seem justified given its financial performance and market conditions. It is therefore expected that the stock price will drop.
Explore the deceptive practice known as 'Painting the Tape' in financial markets, including its techniques, implications, and related regulations.
A comprehensive guide to understanding panic buying and selling, the triggers, effects, and strategies to manage such market reactions.
An in-depth exploration of Participating Preferred Stock, its features, benefits, and context within the finance world.
A comprehensive guide on Penny Stocks, their characteristics, benefits, risks, and related financial concepts.
An in-depth look into Performance Stock, a high-growth security that investors believe will rise in value significantly, also known as Growth Stock.
The Presidential Election Cycle Theory hypothesizes that major stock market moves can be predicted based on the four-year presidential election cycle, anticipating economic recovery engineered by the incumbent president.
An in-depth exploration of Primary Earnings Per (Common) Share, including its calculation, significance, and associated considerations.
Public Ownership entails government ownership and operation of productive facilities and the portion of a corporation's stock traded in the open market. This entry covers its implications, examples, historical context, and impact.
A Publicly Held Corporation, also known as a publicly traded company, is a corporation that has its common stock registered on a national stock exchange. This detailed entry explores its characteristics, types, advantages, regulations, and more.
Understanding what a publicly traded corporation is, its characteristics, benefits, drawbacks, historical context, and related terms.
A put option contract grants the holder the right to sell a specific number of shares at a specified price by a certain date. It is considered a capital asset when held by a nondealer.
Understanding 'Put to Seller': Used when a Put Option is exercised, obligating the writer to buy the underlying shares at the agreed-upon price.
An in-depth exploration of the concept of 'Quotation' in commercial, financial, and historical contexts.
A rally refers to a significant increase in the price of a security, commodity future, or market after a period of decline or flat movement.
An in-depth examination of registered securities, including their types, special considerations, historical context, and more.
Detailed overview of Retirement Funds, regulated by the Employee Retirement Income Security Act (ERISA) of 1974, and their impact on the stock market.
A round lot, typically 100 shares for stocks or a specific par value for bonds, represents the standard trading unit on major securities exchanges like the New York Stock Exchange.
A comprehensive overview of the S&P 500, a widely-used stock market index in the United States representing 500 of the largest companies.
A Secondary Offering refers to the sale of shares that have already been issued to the public and are now being sold by current shareholders.
A comprehensive overview of the term 'Sector' exploring its various contexts in finance, economy, and technology, along with examples and historical context.
A comprehensive overview of the role, responsibilities, and impact of a Securities Analyst in the financial markets and investment industry.
An overview of the Federal Reserve Board's authority to establish selective terms for various credit instruments, including margin requirements and their impact on stock market trading.
Detailed exploration of Short Interest in the stock market, including definitions, mathematical formulations, historical context, and practical applications.
An In-depth Look at Short Selling, its Mechanisms, and Implications
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 surge in prices.
A comprehensive guide to sleeper stocks, their characteristics, and their significant potential for price gains once recognized by investors.
Refer to SPDR for more information about Standard & Poor's Depositary Receipts (SPDRs), a type of exchange-traded fund.
An in-depth look into the Standard & Poor's Index, which tracks the performance of 500 widely held common stocks and is commonly known as the S&P 500.
An in-depth look into stock buybacks, also known as share repurchase plans, where companies buy back their own shares from the marketplace.
Understand the intricacies of stock options, a key financial instrument offering opportunities for investment, speculation, and employee compensation.
An in-depth look at stock splits, their types, implications, and historical significance in financial markets.
A Stock-Transfer Agent specializes in managing and executing the transfer of stock ownership and maintaining comprehensive records of shareholders.
Detailed annual publication by Ibbotson & Associates providing comprehensive historical data and analysis on stocks, bonds, bills, and inflation.
A term referring to securities held in the name of a broker or another nominee instead of the customer, facilitating easier transfer at the time of sale.
An in-depth look at the subscription privilege, which grants existing shareholders the right to purchase additional shares of a new stock issue before it is available to the public.
A comprehensive exploration of Subscription Rights and Warrants, detailing the contractual rights of existing shareholders to purchase additional shares, their types, special considerations, historical context, and more.
A 'Sweetener' refers to an added feature in a securities offering designed to make the securities more attractive to purchasers.
The phrase 'take a bath, take a beating' refers to suffering a significant financial loss on a product, speculation, or investment.
Taking a flier refers to the act of engaging in highly speculative investments with a significant risk of loss.
To buy stock in a company with the intent of long-term holding or taking control, including regulatory requirements and strategic inventory management.
A tender offer is a public, open offer or invitation to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a specified time.
An in-depth explanation of the tick in stock trading, describing its significance, types, and usage by technical analysts to determine price trends.
A Ticker Symbol is a unique series of letters assigned to a security or stock for trading purposes on a particular stock exchange.
The Tokyo Stock Exchange (TSE) is the largest of the eight stock exchanges in Japan and one of the largest, most important, and most active stock markets in the world. Formerly a continuous auction market, it is now fully computerized with no trading floor.
A comprehensive guide to the Top-Down Portfolio Approach, a method where investors first analyze macroeconomic trends before selecting industries and companies that benefit from those trends.
A trading halt is a temporary suspension of trading for a particular security or securities at one specific exchange.
A comprehensive explanation of the term 'turkey' in business and investment contexts, detailing its use in describing disappointing investments or business decisions.
An in-depth exploration of turnarounds in business, markets, and the economy, focusing on examples, types, and special considerations.
Detailed overview and comprehensive definition of Underlying Security in the context of financial derivatives and securities.
Unrealized Profit (Loss) refers to the gain or loss that is theoretical and has not yet been actualized through the sale of a security or commodity futures contract. Learn more about its implications and how it differs from realized profit (loss).
The term 'Volume' refers to the total number of stock shares, bonds, or commodities futures contracts traded in a particular period, a set of issues of a periodical, or the amount of space occupied in three dimensions.
Wall Street is the renowned financial district located in lower Manhattan, New York City. It functions as the hub of financial markets, housing major stock exchanges, brokerage firms, and investment communities.
A detailed exploration of Wallflower stocks, their characteristics, and investment implications. Understand why these stocks have fallen out of favor with investors and how they are evaluated.
A comprehensive guide to understanding the concept of wash sales, their tax implications, and related rules.
Watered Stock refers to stock issued at a significantly inflated price relative to its book value or actual worth, often leading to ethical and financial complications.
Widow-and-Orphan Stock refers to a type of stock that pays high dividends and is considered very safe. Typically, these stocks have a low beta coefficient and are involved in non-cyclical businesses.
Yo-Yo Stock: An overview of highly volatile stocks that exhibit rapid fluctuations in price, similar to the motion of a yo-yo.
A comprehensive exploration of a 100% equities strategy, detailing how it works, its benefits, risks, and how it compares to other investment strategies.
The 130-30 strategy utilizes financial leverage by shorting underperforming stocks and investing in high-return potential shares to optimize portfolio returns.
An in-depth analysis of abnormal returns, exploring the definition, underlying causes, and illustrative examples of this financial concept.
An in-depth look at after-hours trading, including how it works, its advantages and risks, and real-world examples.
In-depth explanation of American Depositary Shares (ADS), including their definition, examples, and a comparison with American Depositary Receipts (ADR).
Explore the concept of anomalies in Economics and Finance, detailing definitions, types, historical examples, significance, and their impact on financial markets.
In-depth exploration of anti-dilution provisions including their definition, mechanisms of operation, different types, and calculation formulas. Learn how these clauses protect convertible preferred stock investors from potential devaluation of their investments.
Comprehensive guide on the Aroon Indicator, including its formula, calculations, interpretation, and limitations. Learn how to identify trend changes and assess the strength of market trends using this powerful technical indicator.
The Aroon Oscillator is a trend-following indicator used in technical analysis to measure the strength of a current trend and its potential continuation. This guide covers its definition, calculation formula, and the trade signals it generates.
An in-depth guide on bear markets, including their definition, phases, historical examples, and strategies for investing during a downturn.
A comprehensive exploration of the Bird In Hand theory in investing, detailing its definition, strategic implications, and practical examples, supported by historical context and real-world applications.
Explore the concept of Black Swan events in the stock market, including a comprehensive definition, notable examples, historical impact, and why these events seem obvious in hindsight yet are difficult to predict.
Explore the intricacies of block trades in finance, including their definition, how they are executed, and real-world examples. Learn about the significance of block trades in the stock market, their impact, and key considerations.
A comprehensive overview of what a blotter is, how it functions in trading, its various applications, and illustrative examples.
Comprehensive definition and examples of blue chip stocks, highlighting their characteristics, financial stability, historical context, and role in investment portfolios.
A comprehensive guide to blue chip stocks, exploring their definition, key benefits, and potential as investment opportunities.
A comprehensive guide to Bollinger Bands, a critical momentum indicator in technical analysis, depicting two standard deviations above and below a simple moving average.
Explore the detailed definition of a bull investor, the traits that define them, and examples of bullish investing in stocks and other assets.
Explore the Buy and Hold Strategy, a passive investment approach where investors purchase stocks and hold them long-term, ignoring short-term market fluctuations.
A comprehensive guide to understanding buy stop orders, their practical applications, and key considerations for investors.
An in-depth exploration of 'Buy to Cover,' a crucial trading strategy used to close out short positions. This article covers the mechanism, implications, and practical applications of buying to cover in the stock market.
Learn how to calculate percentage change, an essential concept in finance to represent the price change of a stock and much more. Understand the formula, steps, and real-world applications.
The CAPE Ratio (Shiller PE Ratio) measures stock market affordability by adjusting past company earnings for inflation, providing valuable insights for investors.
Explore the concept of closing a position in trading, understand its mechanism, and see an illustrative example to comprehend how it nullifies initial exposure.
Explore the definition of commodities, their types, historical significance, and their pivotal role in shaping stock market trends.
A comprehensive guide to contrarian investing, covering its strategy, associated risks, and potential rewards.
Explore the concept of cum dividend, understand its definition, working mechanism, and see practical examples. Learn how it affects stock trading and investment strategies.
A detailed guide on Direct Stock Purchase Plans (DSPPs), explaining what they are, their benefits, and how they function within the stock market.
An in-depth exploration of the Dividend Growth Rate, covering its definition, methods for calculation, real-world examples, historical context, and its relevance in finance and stock market investments.
Discover the power of dividend reinvestment plans (DRIPs) in growing your investments by automatically reinvesting cash dividends into additional shares, leveraging the potential for compounded returns.
Discover the fundamentals of Dollar-Cost Averaging (DCA), a systematic investment strategy that involves regularly buying a fixed dollar amount of a specific investment, along with insightful examples and important considerations.
Explore the mechanics, applications, and intricacies of Dutch Auctions in public offerings. Understand how the lowest price to sell an entire offering becomes the offer price for all securities being sold.
Discover the Envelope Technical Indicator, its working principles, and a practical example. Enhance your trading strategies with a comprehensive understanding of price chart boundaries.
A comprehensive guide to the Equity Capital Market (ECM), detailing its definition, mechanisms, types, primary and secondary market functions, and the role of financial institutions in aiding companies to raise equity capital.
An in-depth exploration of the Equity Premium Puzzle, detailing its definition, historical performance, various theoretical explanations, and its implications for finance and economics.
Understand the concept of Equity Risk Premium, how to calculate it, and its significance in the financial markets.
Comprehensive examination of escrowed shares, including their definition, various types, historical context, examples, applicability, related terms, FAQs, and references.
An Event Study is a statistical methodology used to evaluate the impact of a specific event or piece of news on a company and its stock. Discover its definition, methods, and applications in investment and economic analysis.
A comprehensive guide to understanding Exchange-Traded Funds (ETFs), including their structure, benefits, drawbacks, types of ETFs, and their role in investment portfolios.
Comprehensive overview of Exchange-Traded Products (ETPs), including their definition, various types, and practical examples.
Explore the detailed definition of FANG stocks, learn about the companies included, analyze their performance, and discover effective investment strategies.
A comprehensive guide to the Fear & Greed Index, its components, historical context, and its impact on investment decisions.
