Archives

A type of underwriting where the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss.

This occurs when a stock hits support in the form of an old high, a moving average, a trend line, or a combination of these, and moves up sharply. It is like dropping a ball onto a concrete sidewalk-the sidewalk is hard support and the ball bounces sharply. Not all support is strong enough for a bounce-we look for old tops (highs on the way up), breakout points (they act as resistance until the breakout-if the breakout is on good volume, it should act as support and give you a bounce). If money flow is good and the market is not tanking, we usually see a bounce off of this solid support.

An order that must be filled completely or the trade will not take place.

A certificate trading on a U.S. stock exchange that represents shares of a foreign corporation. 

Options that can be exercised any time during their lifetime. These are also known as open options.

Someone typically working for a brokerage house, who publishes buy/hold/sell recommendations and earnings forecasts for a stock. Buy side analysts work for institutional buyers, and sell side analysts work for brokerages. 

A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company’s fiscal year-end.

Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems.

The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote.

The price you are asked to pay when you buy a stock (see ‘Bid Price’).