Accumulation- The first phase of a Bull market. While most investors are discouraged with the market, and Earnings are at their worst, some investors start buying shares. This phenomenon is known as accumulation. Actual market- Used in context of general equities. Advance- Increase in the market price of stocks, bonds, commodities, or other assets. Aftermarket- Secondary market Aggressively- Used in context of general equities. For a customer it means Working to Buy or Sell one`s stock, with an emphasis on Execution over price. Ahead of itself- In context of general equities, refers to equities that are overbought or oversold On technical basis.
B
Beating the gun- In the context of general equities, gaining an advantageous price in a trade through a quick Response to Market developments. Bell- Signal On a stock Exchange to indicate the open and Close of trading. Black Friday- A precipitous Drop in a Financial Market . Blowout- The rapid Sale of all Shares in a new securities offering. Blow-off top- A steep and rapid increase in price followed by a steep and rapid drop. Bootstrap- Term used to describe the Start-up of a Company with very little capital.
C
Cap- Upper limit Cats and dogs- Speculative stocks with Short histories of sales, earnings, and Dividend payments. Ceiling- The highest price, or other numerical Factor allowable in a financial transaction. Chasing the market- Purchasing a security at a higher price than expected because prices are rapidly climbing, or selling a security at a lower level when prices are quickly falling. Churning- Excessive Trading of a client`s Account in Order to increase the broker`s commissions. Closeout- To Closeout a position is to Buy or Sell against it in Order to end Up with a neutral position.
D
Day Trading- Buying or selling the same security within the same day. Day Trading usually involves closing Out all positions by the end of the day. Defensive securities- Low-risk stocks that will provide a predictable and safe on an investor`s money. Delivery- The Tender and receipt of an actual Commodity or financial instrument in Settlement of a futures contract. Dirty stock- A Stock that fails to fulfill prerequisites to attain good Delivery status. Distribution area- An established Price range in which a Stock has been Trading in for a significant amount of time. See: Accumulation area.
E
Eating stock- When an underwriter can`t find buyers for a Stock and therefore has to Buy them for his own account. Elephants- Slang for large institutions that make trades in very high volumes. Envelope- A trading band composed of two moving averages, one of which is shifting upwards and the other shifting downwards. Equilibrium- The state in which market supply and demand balance each other and, as a result, prices become stable. Equi volume- A chart that compares price and volume and plots them together as one piece of data. The height of each bar represents the high and low for each period, and the width represents the volume relative to the total shares traded over the time period being viewed
F
Fall out of bed- A sudden Drop in a stock`s price resulting from failed or poor business deals gone bad or falling through Flip side- In the context of general equities, opposite side to a proposition or position (buy, if Sell is the proposition and vice versa). Floor order- when the price drops low enough to activate such an order Flurry- A drastic volume increase in a specific security. Frictionless market- Ideal Trading environment that imposes no costs or restraints on transactions.
G
Good For The Day - This is a type of trading order that expires immediately after the day for which it is set. Good Until Cancelled - A good until cancelled order will remain on the broker's books until you actively cancel the order.
H
Hammering the market- Heavy selling of stocks by speculators who think that the Stock is Overvalued and is about to drop. Half-stock- Stock, common or preferred, with a $50 Par value. Hedge- A Transaction that reduces the Risk of an investment. High jacking- Japanese Term for a takeover. Hot- Used in the context of general equities. Active, usually with positive price implications.
I
In & out- Refers to over-the-counter trading. Trade in which the trader has both the buyers and sellers lined Up for a Clean trade. Initial margin- 1) Amount of Money deposited by both buyers and sellers of futures contracts to ensure performance of the terms of the contract; (2) amount of Cash or eligible securities required to be deposited with a Broker before engaging in margin transactions. Insider trading- Trading by officers, directors, major stockholders, or others who Hold private inside information allowing them to benefit from buying or selling stock. Intraday- Term meaning "within the day," often to refer to the High and the Low price of a stock.
J
Jobber- A Term for a Market maker used On the London Stock Exchange. Just me asking- Used in the context of general equities. "Not a customer request for information." Justified price- The Fair market price of the security Job Lot- A futures contract with a minimum trading unit smaller than the levels required in regular contracts. January Barometer- A theory stating that the movement of the S&P 500 during the month of January sets the stock market's direction for the year (as measured by the S&P 500). In other words, if the S&P 500 was up at the end of January compared to the beginning of the month, proponents would expect the stock market to rise during the rest of the year.
K
Kick it out- Used in the context of general equities. "Liquidate a position (sell a long/cover a short) Without regard to price. Kill- To cancel a trade or order that has been placed, but not filled. Kickback- A slang term used to describe the payment of something of value to another individual with the goal of persuading or influencing their decision or performance in certain situations.
L
Last Trade- The price at which the last Trade was executed; after The Market close, this is the Closing price for the day. Leading the market- In the context of general equities, this is a Stock or group of stocks moving with The Market as a whole, but moving in Advance of the general market. Long position- For equities, a Long position occurs when an individual owns securities. Load- The sales fee charged to an Investor when Shares are purchased in a Load fund or annuity. Leg- A prolonged trend in Stock market prices, such as a multiple-period Bull market.
M
Make a market- Dealers are said to Make a market when they quote Bid and offered prices at which they stand ready to Buy and sell. Market jitters- Anxiety among many investors, causing them to Sell stocks and bonds, pushing prices down. Mid cap- A Stock with a Capitalization usually between $1 billion and $5 billion. Momentum- is the rate of acceleration of a security’s price or volume. Market depth- the market’s ability to sustain relatively large market orders without impacting the price of the security.
N
Narrow market- An inactive market, which displays large fluctuations in prices due to a low volume of trading. Neutral stock- A Stock with a market risk of 1.0. No-brainer- A Market in which it does not Take very complex Analysis to Figure out how securities are going to perform, such as a strong Bull market. Net Short- A condition in which an investor has more short positions than long positions in a given asset, market, portfolio or trading strategy. Investors who are net short will benefit when the price of the underlying asset decreases. Noise Trader Risk-A form of market risk associated with the investment decisions of noise traders. The higher the volatility in market price for a particular security, the greater the associated noise trader risk.
0
Over issue- An excess of issued Shares over authorized shares. Open-outcry- The method of Trading used at futures exchanges, typically involving calling Out the specific details of a Buy or Sell order, so that the information is available to all traders. Odd Lot- An amount of a security that is less than the normal unit of trading for that particular security. Open Interest-The total number of options and/or futures contracts that are not closed or delivered on a particular day. Open Order- An order to buy or sell a security that remains in effect until it is either canceled by the customer or executed.
