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.
Archives
Dutch Auction
A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.
Block Trade
A single purchase or sale of a stock involving 10,000 or more shares.
Debt Volume
The number of debt instruments traded on one side of the transaction for a specified period multiplied by the face value of the debt instrument.
Downtrend
Stock price is heading down.
Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.
Defensive Stock
A stock purchased from a company that has maintained a record of stable earnings and continuous dividend payments through periods of economic downturn.
Earnings per Share (EPS)
After tax 12-month’s earnings divided by the number of shares outstanding.
Due Diligence
The process whereby an in-depth examination of a company’s business prospects is conducted.
Deferred anything
Balance sheet liability reflecting expenses shown on the income statement that haven’t actually been paid.