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A seller of an option contract who does not own a position in the underlying security.

Borrowings that must be repaid within one-year. 

This is a condition resulting from selling an option and not owning the related securities.

A trader employed by a securities firm who is required to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities up to a specified minimum guaranteed fill.

The difference between the previous day’s closing price and the last traded price.

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.

Stocks and other liquid securities. 

The difference between a company’s or individual’s total assets and its total liabilities. Also known as shareholders’ equity for a company.

A special form of corporation that invests primarily in real estate. REITs do not pay federal income taxes as long as they pay out 90% of their earnings to shareholders in the form of dividends.

Selling stock you don’t own. You hope it drops in price so you can buy it back later at a lower price. You must have a margin account with your broker to sell short.