Ex Dividend

The holder of shares purchased ex dividend is not entitled to an upcoming already-declared dividend, but is entitled to future dividends.

Downtick

A trade is on a downtick when the last trade occurred at a price lower than the previous one.

Dutch Auction

A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.

EBIT

Earnings before interest and taxes. Also known as operating income. 

EBITDA

Earnings before interest, taxes, depreciation and amortization. Adds these items back to reported earnings to more accurately reflect real cash earnings of company. Similar to operating cash flow, except operating cash flow also considers changes in levels of inventories and receivables.

ECN

Electronic Communication Network. ECNs are expected to supplement or even replace conventional stock exchanges over the next one to two years.