Usually involves looking for stocks in a strong uptrend (high relative strength), strong earnings growth, and increasing earnings forecasts. In today’s market, may include relative strength only.
Archives
Liquidating Order
An order to close out an existing open futures or options contract. A liquidating order involves the sale of a contract that has been purchased or purchase of a contract that has been sold.
Liquidity
a measure of the number of shares, or dollar value of shares traded daily. Mutual funds and other institutional buyers prefer high liquidity stocks so they can easily move in and out of positions.
Listed Stock
Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges.
Listing Application
The document that an issuer completes and submits to an exchange when it applies to list its shares on the exchange. The issuer must disclose its activities, plans, management and finances in the application.
Lockup Period
Time after IPO, typically 180 days, when insiders are prohibited from selling their shares.
Long Tail
A ‘long tail’ means the low for the day was well below the close. In other words, the market opened, sellers took over and pushed the index down, but then buyers came back in and ran the index back up to where it opened. The buyers had the last say on the day and showed a lot of strength moving up. That tends to show a reversal in the buying patterns and foretells a further rise from here for the short term.
Long-Term Investments
Balance sheet item reflecting investments in other companies, etc.
Margin
Margin allows investors to buy securities using borrowed money from a broker. The investor is charged interest for the loan. Margin requirements differ depending upon the type of transaction being made or the type of stock being purchased, e.g., selling puts, buying stock, credit spreads. Options are not generally marginable.
Margin Call
This is a demand for a client to deposit money or securities into a margin account. This can occur when a purchase is made in excess of the value of the margin account or when the value of an account decreases because the value of the securities held decreases regardless of whether a new purchase is made or not.