The term 'at par' refers to a financial instrument, such as a bond, that is trading at its face value. In other words, the market price of the bond is equal to its nominal or par value.
A bear market is a prolonged period during which investment prices fall and widespread pessimism causes the negative sentiment to be self-sustaining. A bear market typically describes a condition where security prices fall 20% or more from recent highs.
A bear market is a financial term used to describe a market where the prices of securities are falling or are expected to fall. This state of the market is often characterized by a decline of at least 20% from recent highs.
The price at which a market maker is willing to buy shares, usually slightly lower than the market maker's offer price.
Bullion coins are coins composed of precious metals such as gold, silver, or platinum. They have intrinsic value as bullion and trade based on their metal content rather than rarity or historic value.
A closed period refers to a span of time, often 10 years following the issuance of a bond, during which the bond cannot be called by the issuer.
Compound interest refers to the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It is a crucial concept in finance and investing, offering greater returns compared to simple interest.
A comprehensive look at cum dividend, cum rights, and cum warrant stock scenarios, covering the stipulations for buyers to be eligible for declared distributions upon purchasing stock. This article also addresses related terms such as the ex-dividend date.
A day order is an order to buy or sell securities that expires unless executed or canceled the day it is placed. All orders are typically day orders unless otherwise specified.
A key metric used by investors to evaluate the income generated by an investment relative to its share price, providing insights into the return on investment from dividends.
Dow Theory is a theory that a major trend in the stock market must be confirmed by similar movements in the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). According to this theory, a significant trend is not confirmed until both Dow Jones indexes reach new highs or lows; if they do not, the market is likely to fall back to its previous trading range.
Dragon bonds are foreign bonds issued in the Asian bond markets, designed to tap into the growing pool of Asian investors.
Ex-dividend is a stock trading term indicating that a stock is trading without the value of its next dividend payment. Dividends are a portion of a company's earnings distributed to shareholders.
A fractional share represents a unit of stock that is less than one full share. Fractional shares arise from stock dividends, stock splits, or dividend reinvestment plans.
The FTSE Indexes are a series of stock market indices created by the Financial Times and the London Stock Exchange to measure the performance of companies listed on the London Stock Exchange.
Going short refers to the act of selling a stock or commodity that the seller does not own, typically in anticipation that the price will decline, allowing them to buy it back at a lower price for a profit.
The Greater Fool Theory posits that even if a stock or the entire market is overvalued, investing in such assets can still be justified by the belief that there are always other 'fools' who will pay a higher price.
A growth stock is a type of stock that has exhibited faster than average gains in earnings over recent years and is expected to continue showcasing high levels of profit growth. These stocks often come with higher risks but offer potentially greater returns compared to average stocks.
A term used to describe newly issued stock that rises quickly in price, often due to strong interest and demand from investors.
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.
Market value is a critical financial metric, reflecting the current price at which an asset or service can be bought or sold in a marketplace. It is widely used in trading and investing to determine the 'fair price' of a property, stock, or currency.
Mid-Cap stocks typically have a market capitalization between $1 billion and $5 billion, positioned between small-cap and large-cap stocks. These stocks often offer a blend of stability and growth potential.
A Minus Tick, also known as a downtick, is a term used in trading and investing to describe a trade of a security that occurs at a price lower than the previous trade.
Stock prices that have reached their highest or lowest levels within the past year. This data is often published in newspapers and financial websites to indicate companies experiencing significant price changes.
The New York Stock Exchange (NYSE) is one of the largest and most well-known securities exchanges in the world. Established in 1792, the NYSE is located on Wall Street in New York City and is a symbol of global finance and capital markets.
The premier U.S. stock exchange, established in 1792 and recognized for its significant influence on global financial markets.
The New York Stock Exchange (NYSE) is the largest stock exchange in the world by market capitalization. It provides a platform for buying and selling an extensive range of securities, including stocks, bonds, and other financial instruments.
The offering date is the specific date on which a distribution of stocks or bonds becomes available for sale to the public. It marks the first opportunity for investors to purchase the securities being offered by a company.
Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares generally have a dividend that must be paid out before dividends to common shareholders and the shares usually do not carry voting rights.
A registered representative (RR) is an employee of a broker/dealer member of a stock exchange who acts as an account executive for clients.
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.
An abbreviation for the Stock Exchange of Hong Kong, a key financial hub for trading securities and providing a marketplace for investors and companies.
A sell-off refers to the rapid selling of securities due to underlying panic or to avoid further declines in prices, often resulting in a sharp decline in the market.
An influence by one company on the financial and operating policy decisions of another company (including dividend policy) in which it has an interest. The influence does not need to amount to control.
To speculate, usually with the knowledge that the investment is highly risky, often in the context of buying securities.
The principal stock exchange of Japan, the Tokyo Stock Exchange (TSE), is a major global exchange and currently the third-largest in the world by market capitalization. The TSE is well-known for its efficiency and modern electronic trading platforms.
The Toronto Stock Exchange (TSE) is the largest stock exchange in Canada, listing around 1,200 company stocks and offering 33 options. The exchange employs both open outcry and Computer Assisted Trading System (CATS) for its operations.
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.
