Archives

A short sale squeeze occurs when there are many short sale positions on a stock the stock begins to increase. As the stock price rises, the short sellers scramble to cover their short positions, i.e., buying the stock they have sold back. This creates demand for the stock above that which caused the stock price to start rising in the first place, and can lead to rapid price appreciation.

The difference between a bond’s face value and its current market price. 

The selling of a security that the seller does not own (naked or uncovered short) or has borrowed (covered short). Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference.

A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.

A sharp move up in stock price forcing short sellers to liquidate their positions. 

The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.

Borrowings that must be repaid within one-year. 

Total of 12-month’s dividends paid (historical or forecast) divided by the latest share price. 

Stocks and other liquid securities. 

The date set by the issuer on which the dividend/distribution will be paid.