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Write

To write an option is to sell an option. The person who sells the option is considered to be the writer.

Liquidity

a measure of the number of shares, or dollar value of shares traded daily. Mutual funds and other institutional buyers prefer high liquidity stocks so they can easily move in and out of positions.

Yield

This is the measure of the return on an investment and is shown as a percentage. A stock yield is calculated by dividing the annual dividend by the stock’s current market price. For example, a stock selling at $50 and with an annual dividend of $5 per share yields 10%. A bond yield is a more complicated calculation, involving annual interest payments, plus amortizing the difference between its current market price and par value over the life of the bond.

Listed Stock

Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges.

Listing Application

The document that an issuer completes and submits to an exchange when it applies to list its shares on the exchange. The issuer must disclose its activities, plans, management and finances in the application.

Volume

Volume is the daily number of shares of a security that are traded. Volume is one of the most important indicators we watch. Its relation with price movements tells us 90% of the story behind a stock?s movement and future movements. At its simplest, increased volume on increasing prices shows accumulation. Increased volume on lower prices shows distribution. There are many variations on this theme, and we spend a great deal of time poring over price/volume relations to determine which way a stock will move.