Insider Trading

This is trading in the shares of an entity by its directors and officers. These individuals are required to disclose their trades before they happen, and several services provide this information to investors. It is useful, though not an absolute indicator as to a stock?s potential movement, to know if insiders are selling or buying shares of the company they run.

Insiders

With respect to a corporation or other entity, these are the people who have access to inside information about a company or entity that is material to the stock price. For corporations, they are typically the directors and senior officers of a corporation. A person or entity that owns greater than ten percent (10%) someone of the voting shares of a corporation is also considered an insider.

Interest Coverage

A measure of a company’s ability to pay interest on its debts (operating income divided by interest expenses).

Intermarket Surveillance Group (ISG)

An international committee comprised of members from 31 exchanges around the world, including every major stock exchange. Membership in the ISG allows all members to share surveillance and investigative information to ensure that each regulator has access to the necessary information to effectively regulate its marketplace. The ISG promotes effective market surveillance among international exchanges and RS involvement helps ensure they are continually in touch with other regulators and part of the development of international best practices.

International Securities Identification Number (ISIN)

The international standard that is used to uniquely identify securities. It consists of a two-character alphabetic country code specified in ISO 6166, followed by a nine-character alphanumeric security identifier (assigned by a national security numbering agency), and then an ISIN check-digit.

Head & Shoulders Pattern

This is a reversal signature pattern. It can be either negative (typical head and shoulders), or positive (inverted head and shoulders). A head and shoulders pattern is one of the more common and reliable patterns. It is comprised of a rally which ends a fairly extensive advance. It is followed by a reaction on less volume. This is the left shoulder. The head is comprised of a rally up on high volume exceeding the price of the previous rally. And the head is comprised of a reaction down to the previous bottom on light volume. The right shoulder is comprised of a rally up which fails to exceed the height of the head. It is then followed by a reaction down. If the right shoulder does not reach the height of the left shoulder, this indicates that the fall could be even more severe. This last reaction down should break a horizontal line drawn along the bottoms of the previous lows from the left shoulder and head. This is the point in which the major decline begins. The major difference between a head and shoulder top and bottom is that the bottom should have a large burst of activity on the breakout.