Trading Range

A trading range occurs when a stock or average moves up and down between a consistent high and low for an extended period of time (days, to weeks, to months). The bottom of the range becomes fairly solid support as the top becomes fairly solid resistance the more times either holds. We play stocks within the trading ranges if they are loose enough to give us some room to maneuver, e.g., a 5 point range or more. A tight trading range is one that is significantly narrower than a particular stock?s usual trading fluctuations. A tight trading range on low volume is usually a very good indicator that a move up is coming.

Bear Trap

A false signal which indicates that the rising trend of a stock or index has reversed when in fact it has not.

Anonymous Trading

Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems.

Bull Trap

A false signal which indicates that the price of a stock or index has reversed to an upward trend, but ultimately proves to be false.

Best-Efforts Underwriting

A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to be issued will be sold.

Analyst

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.