Archives

A trade is on a downtick when the last trade occurred at a price lower than the previous one.

A special type of financial trust that allows an investor to buy an entire basket of stocks through a single security, which tracks and matches the returns of a stock market index. ETFs are considered to be a special type of index mutual fund, but they are listed on an exchange and trade like a stock. Also known as an index participation unit (IPU).

A stockbroker offering investment advice and other services not usually offered by discount brokers.

A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.

The true value of a stock based on criteria of the user’s choosing. A stock is said to be overvalued when the share price exceeds the fair value.

Number of shares outstanding including options granted but not yet exercised.

Stock price is heading down.

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.

An IPO trading below its issue price in the aftermarket.

Analyzing stocks by looking at earnings, sales, profit margins, etc.