The difference between the total of assets and liabilities shown on a company’s balance sheet. Book value is the shareholders equity divided by the number of outstanding shares.
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Securities Commission
Each province has a securities commission or administrator that oversees the provincial securities act. This act is a set of laws and regulations that set down the rules under which securities may be issued or traded in that province.
Quiet Period
Time after IPO, typically 25 days, when all parties involved in IPO are prohibited from commenting on the company’s future prospects. Analysts employed by underwriters are free to make buy/hold/sell recommendations after the Quiet Period expiration.
Fill or Kill (FOK) Order
A tradable limit order marked “FOK” will trade as much stock as possible upon entry, but will immediately cancel or kill any unfilled volume.
Moving Average (MA)
The average closing price of a stock over a specified period. For instance, the 10-day MA is the average closing price for the past 10 days. Stocks are said to be in an uptrend when above their MA and in a downtrend when below. The most widely followed MAs are 50 days and 200 days. Long-term investors tend to look at the 200-day MA while active traders are more likely to pay attention to the 50-day MA. Many investors look at both. As a general rule, it’s best to avoid stocks trading below both their 50- and 200-day MAs.
Shares outstanding
The total number of shares issued by a corporation.
Quote
Information on the last trade, and current bid and asked prices. Most quotes are intentionally delayed about 20 minutes.
Seed Stock
The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO).
Financial Leverage Ratio
The leverage ratio, which is total assets divided by shareholders’ equity, is an all-purpose debt gauge. A company with no debt would have a ratio of one, and the higher the ratio, the more debt.
Moving Average Convergence/Divergence (MACD)
This is a technical indicator that measures moving average convergence/divergence and provides a measurement of the intensity of the trading of a specific stock. It can provide early clues to trend continuation or reversal. The MACD indicator uses three exponential moving averages: a short or fast average, a long or slow average, and an average of the difference between the short and long averages. When the MACD line is rising, the implications are positive for prices: If the indicator is less than zero, the price is potentially bullish. If the indicator is greater than zero, the price is actually bullish. When the MACD line is falling, the implications are negative for prices: If the indicator is less than zero, the price is actually bearish. If the indicator is greater than zero, the price is potentially bearish.The signal line can be used to determine the entry or exit point. The signal line is a moving average of the MACD line. When signal line crosses MACD line and both lines are up, it is a buy signal. When signal line crosses MACD line and both lines are down, it is a sell signal.