A flying plateau is a pattern that forms after a stock has made a strong move up. Strong stocks will consolidate gains sometimes in a flat, sideways pattern in a tight range instead of selling back. This is a very bullish pattern, especially if it is formed on low volume. Picture a 45 degree rise and then a move sideways for several sessions. Strong stocks tend to rest in these patterns, and then start another leg up.
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Free Cash Flow
Operating cash flow minus amounts spent on plants and equipment and minus dividends.
Freeze
An interruption in trading on a stock, triggered when an order violates parameters set by TSX.
Exchange Offering Prospectus (EOP)
A form of prospectus that allows a company to conduct a prospectus offering through the facilities of a stock exchange, rather than issuing them directly to the public. The company then applies to list the securities on the exchange.
Exchange-Traded Fund (ETF)
A special type of financial trust that allows an investor to buy an entire basket of stocks through a single security, which tracks and matches the returns of a stock market index. ETFs are considered to be a special type of index mutual fund, but they are listed on an exchange and trade like a stock. Also known as an index participation unit (IPU).
Exchangeable Security
A security of an issuer that is exchangeable for securities of another issuer (usually a subsidiary) in accordance with the terms of the exchange feature. The exchange may be at the option of the holder or at the option of the issuer of the securities.
Exempt Issuer
A listed issuer that has satisfied listing requirements as outlined in Section 502 of the Listing Requirements Manual. An exempt issuer is not subject to special reporting rules. This status is generally reserved for senior listed issuers.
Exponential Moving Average (EMA)
Exponential moving averages place more weight upon the later moves in the time period than the earlier moves. We use exponential on our short-term moving averages (10 and 18) as we are using them as indicators for short term plays and want to see the latest trend in movement the best we can. It is also known as “exponentially weighted moving average”.
Extended Hours Trading
Trades executed outside normal market hours.
Extra Dividend / Distribution
A dividend/distribution paid in addition to the regularly established dividend/distribution of the issuer. Like all dividends/distributions, it may be paid in securities or cash and the amount, payable date, and record date are established by the issuer. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. Extra dividends/distributions are sometimes referred to as special dividends/distributions.