A measure of a company’s ability to pay interest on its debts (operating income divided by interest expenses).
Archives
Investment Fund
A closed-end fund that offers investors the ability to buy a security that represents a portfolio of investments with a specific investment strategy. These products use funds raised through a public offering to invest in a portfolio of securities, which are actively managed to create income streams for investors, typically through a combination of dividends, capital gains, interest payments, and in some cases, income from derivative investment strategies. These funds are not directly related to an operating business. Some examples are: funds of income funds, senior loan funds, mortgage-backed security funds, and commodity funds.
Lockup Period
Time after IPO, typically 180 days, when insiders are prohibited from selling their shares.
Income Statement
A record of a company’s sales and expenses over a particular year or quarter.
Index
A composite representing the value of a group of stocks.
Investor Relations
A corporate function, combining finance, marketing and communications, to provide investors with accurate information about a company’s performance and prospects.
Long Tail
A ‘long tail’ means the low for the day was well below the close. In other words, the market opened, sellers took over and pushed the index down, but then buyers came back in and ran the index back up to where it opened. The buyers had the last say on the day and showed a lot of strength moving up. That tends to show a reversal in the buying patterns and foretells a further rise from here for the short term.
Junk Bonds
Corporate bonds with poor credit ratings.
Index Option
An option whose underlying security is an index. An example would be the S&P 100 (OEX). A trader can buy index options and bet on the direction of the OEX.
Income Stock
A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock.