Dividend

The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.

Triple Witching

the third Friday of March, June, September and December is the day when index futures, index future options, and certain stock options all expire. Triple Witching Fridays are know for high volatility.

Cyclical Stock

A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.

Support Levels

Support levels are levels where a declining stock will find bottom and bounce up from. Supports are formed when a stock breaks above resistance and holds above that level: the old resistance then becomes support. Support levels are also formed when a stock spends a lot of time at one level and then breaks upward. The level that the stock spent most of the time at will most likely act as support. Key moving averages, such as the 18, 50, and 200, also act as support. We like to buy stocks as they bounce upward off of support levels and are backed by good money flow and buying.

Daily Price Limit

The maximum price advance or decline permitted for a futures contract in one trading session compared to the previous day’s settlement price.

Surprise

Difference between reported earnings and analysts’ consensus forecasts. It’s a positive surprise if reported earnings exceed forecasts, and a negative surprise when reported earnings come in below forecasts.

Suspended Issue

The status of a listed security of an issuer whose trading privileges have been revoked by the Exchange. All securities of the issuer remain suspended until trading privileges have been reinstated, or the issuer is delisted.