Archives

A private-sector index (1992=100) that attempts to predict the direction of inflation over the next 6 to 12 months.

A company estimates the future profitability of a trade made today and books a profit today based on the present value of those estimated future profits.

Growth at a reasonable price. A strategy of buying stocks whose price/earnings ratio is equal to or less than the estimated annual earnings growth rate.

Accounting rules and procedures established by the Financial Accounting Standards Board, an independent self-regulating organization. 

Exponential moving averages place more weight upon the later moves in the time period than the earlier moves. We use exponential on our short-term moving averages (10 and 18) as we are using them as indicators for short term plays and want to see the latest trend in movement the best we can. It is also known as “exponentially weighted moving average”.

Trades executed outside normal market hours. 

A dividend/distribution paid in addition to the regularly established dividend/distribution of the issuer. Like all dividends/distributions, it may be paid in securities or cash and the amount, payable date, and record date are established by the issuer. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. Extra dividends/distributions are sometimes referred to as special dividends/distributions.

Charges for items that are both unusual in nature and infrequent in occurrence, such as earthquake-related losses. 

The cash denomination of the individual debt instrument. It is the amount of money that the holder of a debt instrument receives back from the issuer on the debt instrument’s maturity date. Face value is also referred to as par value or principal.

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.