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A mathematical model used to calculate the theoretical price of an option.

Someone typically working for a brokerage house, who publishes buy/hold/sell recommendations and earnings forecasts for a stock. Buy side analysts work for institutional buyers, and sell side analysts work for brokerages. 

Large, stabile companies. 

A single purchase or sale of a stock involving 10,000 or more shares. 

A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company’s fiscal year-end.

Determining the results of using particular screening criteria, as if the screen had been run at some point back in time, and the selected stocks or funds were held for a predetermined time period and then sold. 

Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.

A financial statement listing a company’s assets (what it owns) and liabilities (what it owes) as of a specific date, usually the last day of a company’s fiscal quarter. The difference between a company’s assets and liabilities is termed its net worth or shareholder’s equity. 

Sales charge paid when selling a mutual fund (a.k.a. deferred load). 

This occurs when a stock trades sideways in various signature patterns (e.g., cup with handle, saucer base, flat base) while it is under accumulation prior to its next move up. We look for these stocks as they can lead to explosive moves out of the bases.