Dollar Cost Averaging

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.

Double Bottom/ Double Top

These are reversal patterns. It is a decline or advance twice to the same level (plus or minus 3%). It indicates support or resistance at that level. These are signature patterns that are playable with little or no confirmation.

Cum Rights

With rights. The owner of shares purchased cum rights is entitled to forthcoming, already-declared rights. The opposite of this is ex rights.

Cum-Dividend/Distribution Date

The trading day before the ex-dividend/distribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividend/distribution.

Cyclical Stock

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

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.