Stock Market

A 10 bagger is a stock that increases in value by at least 10 times its purchase price, or by at least 900%.  The term 10 bagger was coined by legendary fund manager Peter Lynch in his best-selling book
The 52-week high and low refers to the highest and lowest market prices of a given security over a 52-week (one year) period.
An ABC agreement is a contractual agreement between an investment house and its broker which allows the firm to purchase a seat (membership) on the New York Stock Exchange (NYSE).
Active management is an investment strategy that tries to create excess returns through the recognition, anticipation, and exploitation of short-term investment trends.
An affirmative obligation is a responsibility incumbent upon New York Stock Exchange (NYSE) specialists to ensure that a market for a stock still exists in the absence of sufficient supply or demand.
After hours trading is the trading that occurs on electronic market exchanges after regular stock market trading hours have ended.
After the bell is a phrase referring to the end of an exchange's daily trading session.
An air pocket stock is one that experiences an abrupt and severe price decline.
All or nothing (AON), also known as an "all or none" order, is a condition used on a buy or sell order which instructs a broker to execute the order in its entirety or to do nothing.
An alternative order is a group of limit orders linked together within a brokerage account. If one order is executed, all other linked orders are automatically canceled.
An American Depositary Receipt (ADR) is a certificate that represents shares of a foreign stock owned and issued by a U.S. bank. The foreign shares are usually held in custody overseas, but the
The American Stock Exchange (AMEX) is a stock and options exchange in New York. 
The AMEX Biotech Index is the benchmark index for the Biotechnology industry. This index was started on October 18, 1991 with a value of 200. The index broke below 100 several times prior to 1999 and then
An analyst expectation is typically a prediction of a company's quarterly or annual earnings per share.
An any-and-all bid is an offer to acquire a company whereby the potential buyer offers to purchase any and all of the shareholders' shares at a specific price by a certain deadline.
The ask price is the lowest price a prospective seller is willing to accept in exchange for a specific security. 
Ask size is the number of shares a seller is selling at a quoted ask price. The ask size is the opposite of the bid size, which is the number of shares a buyer is willing to buy at the quoted bid price.
An auction market is a market in which buyers indicate the highest price they are willing to pay and sellers indicate the lowest price they are willing to accept. A trade occurs when the buyer and seller
Average down (or averaging down) refers to the purchase of additional units of a stock already held by an investor after the price has dropped. Averaging down results in a decrease of the average price at
A back door listing occurs when a private company acquires a publicly traded company and thus “goes public” without an initial public offering.
A back-stop purchaser buys leftover shares from the underwriter of an equity or rights offering.
Backing away occurs when a market maker does not honor a quoted bid or ask price for a minimum quantity of a particular security.
A backspread is a trading strategy whereby the investor buys a set of options with one strike price and sells a similar set of options with a lower strike price.
Backtesting is the process of applying a trading strategy or analytical method to historical data to see how accurately the strategy or method would have predicted actual results.
The bandwagon effect is when people go along with what everyone else is doing.
A bear has a negative outlook on the market (belief that the value of an asset or market will decrease).
A bear market is a period of several months or years during which securities prices consistently fall. The term is typically used in reference to the stock market, but it can also describe specific
Behavioral finance combines social and psychological theory with financial theory as a means of understanding how price movements in the securities markets occur independent of any corporate actions.
A bellwether is a security or indicator that signals the market's direction.
The beneficial owner is the individual or entity that enjoys the benefits of owning an asset, regardless of whose name the title of the property or security is in.
The best ask is the lowest price offered by a stock's market makers. For stocks, the best ask is quoted in dollars. For bonds, the best ask is quoted as a percentage of face value or (for Treasuries and
Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the
The best-price rule refers to Securities and Exchange Commission (SEC) Rule 14d-10. This rule requires an entity making a tender offer for a certain class of shares to make the same offer to all the
The bid price is the highest price that a prospective buyer is willing to pay for a specific security. The "ask price," is the lowest price acceptable to a prospective seller of the same security. The
Bid size is the number of shares a buyer is willing to purchase at a given price. For bond trading, bid size is measured in dollars.
The bid-ask spread (also known simply as "the spread") is the difference between a security's bid price and its ask price.
In the investing world, Black Friday refers to the gold crisis of September 24, 1869. It sometimes also refers to the New York Stock Exchange crash of September 19, 1873.   In the retail world, Black
Black Monday, also called "The Crash of 1987," refers to the 509-point fall in the Dow Jones Industrial Average on October 19, 1987. It also refers to October 28, 1929, when the DJIA fell 12.8%.
Black Thursday refers to October 24, 1929, when panicked sellers traded nearly 13 million shares on the New York Stock Exchange (more than three times the normal volume at the time), and investors
Black Tuesday refers to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange (four times the normal volume at the time), and the Dow Jones Industrial
Blank check preferred stock refers to the issuance of a class of preferred shares where the board of directors has authority determining voting rights, dividends, and conversion without separate
Blue sheets are petitions for information from the Securities and Exchange Commission (SEC) to investment companies whose trading activity has resulted in significant price movements.
A "Bo Derek" is a so-called perfect investment. The term comes from the 1979 movie "10," starring the actress Bo Derek, who depicted "the perfect woman."
A boiler room is a call center in which salespeople call potential investors in an attempt to sell risky, or even falsified, investment opportunities using aggressive and unethical tactics.
A broker-dealer is an individual or company that buys and sells securities for its clients and for itself. Broker-dealers differ from plain-vanilla brokers, which can only buy and sell for their clients.
A brokerage fee compensates a broker for executing a transaction. It is usually, but not always, a percentage of the transaction value. In finance, stockbrokers most often come to mind, but real estate
A bull has a positive outlook on an asset class or an entire market. In investing terminology, bull is the opposite of bear.
A bull market is a period of several months or years during which asset prices consistently rise. The term is usually used in reference to the stock market, but it can describe specific sectors such as
The bull/bear ratio indicates overall investor sentiment in the market by comparing the number of bullish and bearish investors. This market indicator is calculated and published weekly by the Investors
Burn rate is the amount of time it will take a company to exhaust its capital cushion. 
Buy and hold is an investment strategy whereby an investor holds securities for the long-term, regardless of short-term market fluctuations.
Buying on margin refers to borrowing from a brokerage firm (through a margin account) to make an investment.
A cage is a department in a brokerage firm.
A calendar effect is a theory that stock prices will perform differently at different times of the year.
In a call market, buy and sell orders are grouped together and then executed at specific times, rather than executed one by one continuously.
Cancel former order is a specific type of trade order a client places with a broker in order to cancel an unfilled buy or sell order.
In the finance world, a canceled order is an order that is deleted before it is executed.
Capitulation occurs when investors attempt to exit an investment or market so quickly that they are willing to surrender any and all gains to do so. Panicked behavior often causes a capitulation, and
A cash cow is a business unit, product line, or investment that has a return on assets (ROA) greater than the market growth rate. The idiom refers to the idea that it produces "milk" (profit) long after
Class A shares are either 1) common stocks or 2) preferred stocks that offer enhanced benefits, such as greater voting rights and a higher dividend priority. 
Class B shares are either 1) common stocks or 2) preferred stocks that generally give fewer benefits to share holders than class A shares
The closing bell is a term used to describe the time that an exchange's daily trading session ends.
A closing price is the trading price of a security at the end of the trading day. In real estate, it is the price at which a piece of property sells.
The CNN effect refers to a major negative impact on consumer spending as a result of breaking news.
Common stock represents ownership interests in corporations.
A composite is a grouping of securities, indexes or other items.
A composite average is an average of the components of other averages.
Also called the Zaraba method, the continuous auction method is a method of trading securities.  
"Cornering the market" refers to the process of acquiring enough shares of a certain security or asset with the intention of illegally manipulating its price.
A correction refers to a price decline of at least 10% of any security or market index after a temporary increase in market prices.
A countercyclical stock is a stock whose price tends to move in opposition to the overall business cycle. When the market rises, the stock price falls, and when the market falls, the stock price moves
Cross-listing (also known as interlisting or dual listing) is the listing of any security on two or more different exchanges.
Cyclical stocks are those that tend to move strongly higher and lower along with the overall business cycle. These stocks represent ownership in companies that are very sensitive to economic fluctuations.
A daily trading limit is the maximum gain or loss allowed on a derivative or currency in one trading day.
Dark pool liquidity refers to the amount of trading activity that occurs directly between parties without the use of an exchange, thereby keeping the transaction private.
In the finance world, a dawn raid is the purchase of a large number of shares or securities as soon as the market opens, usually in a takeover effort.
A day order is an order to buy or sell a security by the end of the day.
Day trader is a term applied to a very active securities trader who holds securities for a short period of time. Day traders will often open and close a position within the same day.
A day-around order is an order that replaces an order from another day. It is most common in the equities markets.
A dead cat bounce refers to a temporary recovery in a stock price or a temporary market rally after a significant downward trend.
A Death Star IPO is a wildly successful IPO. The term is a reference to the Star Wars movies, in which Darth Vader's Death Star battle station could pulverize other planets with a single laser beam.
A defensive stock is a stock that is either stable or a market outperformer during an economic contraction.
/*-->*/ Delisting refers to the removal of a security from active trading. It generally occurs when a company goes private, is bought out, declares bankruptcy or fails to meet listing requirements.
The Depository Trust & Clearing Corporation (DTCC) is a subsidiary of the National Securities Clearing Corporation (NSCC). The DTCC, established in 1973, settles transactions between buyers and
Direct access trading (DAT) refers to any computerized trading system which connects traders to markets, thereby eliminating the need for a broker.
"Dogs of the Dow" is a stock-picking strategy whereby an investor buys equal amounts of the 10 highest-yielding stocks within the Dow Jones Industrial Average at the beginning of each year. After every
The Dow 30 is slang for the Dow Jones Industrial Average.
The Dow Jones Industrial Average (DJIA), sometimes referred to as simply the Dow, is one of several well-known stock market indices. The DJIA was created by Charles Dow, founder of the Wall Street Journal
A company has dual-class stock if it has more than one type of stock and the different classes have varying voting rights, dividend payments, or other characteristics.
A Dutch auction is a method for pricing shares (often in an initial public offering) whereby the price of the shares offered is lowered until there are enough bids to sell all shares. All the shares are
An earnings call is a public announcement, usually via conference call, of a company's profits, usually on a quarterly basis.
Earnings season refers to the four times per year when most public companies announce their quarterly and/or annual earnings.
An earnings surprise in an unexpected difference between a company's actual earnings per share and analysts' expected earnings per share.
An easy-to-borrow list is a brokerage firm's list of securities that are available for shorting.  
Eating stock occurs when a broker/dealer or market maker has to purchase stock because there are not enough buyers.
To get eighthed is to be outbid or undercut by one-eighth of a dollar (12.5 cents).
An either-or order is a group of limit orders linked together within a brokerage account. If one order is executed, all other linked orders are automatically canceled.
Commonly known as an ECN, an electronic communication network is a system for trading financial instruments that takes place outside of the markets and is sanctioned by the Securities and Exchange
Put simply, equity is ownership of an asset of value. Ownership is created when the owner contributes to the financing of the asset purchase. Another way to finance the asset purchase is with debt. The
Equity financing is the method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company.
Extended trading is the pre-market or after-market trading that occurs on electronic market exchanges either before or after regular stock market trading hours.
FAAMG is an acronym that describes five of the most popular tech stocks whose parent companies have come to influence so many of our purchases and a large part of the market: Facebook, Apple, Amazon,
FAANG is an acronym that describes five of the most popular tech stocks whose parent companies have come to influence so many of our purchases and a large part of the market: Facebook, Apple, Amazon,
FANG is an acronym that describes the four most popular tech stocks whose parent companies have come to dominate our lives and the market: Facebook, Amazon, Netflix, and Google (now called Alphabet). The
/*-->*/ Fill or kill (FOK) is a client's instruction to his or her broker to either fill the entire order immediately or to cancel the order.
A financial market is a location where buyers and sellers meet to exchange goods and services at prices determined by the forces of supply and demand.
A company's float is an estimate of the number of outstanding shares available for the public to trade.
A floor broker, also known as a pit broker, is a brokerage firm employee who executes orders on the floor of a stock or commodity exchange on behalf of clients.
A follow-on public offer, also called a secondary offering, is a sale of stock by a company or by an existing shareholder of a company that is already publicly held.
A foul weather fund is a mutual fund that outperforms the market during poor market conditions. The goal of the fund is to minimize or benefit from the effects of a downward move in the market.
Free cash flow per share is a measure of how much cash per share a business generates after accounting for capital expenditures like equipment or buildings. Free cash flow is available to be used for
A company's free float refers to the number of outstanding shares that are available to the public for trade.
A futures commission merchant (FCM) is a company or individual certified to negotiate the sale and purchase of futures contracts, as well as oversee the delivery of underlying commodities to investors.
Going public refers to a company's first issuance of stock on the open market. In most cases, the offering, called an initial public offering (IPO), makes the company's stock accessible to a large group
Goldbrick shares are shares of stock that appear valuable but are actually worthless or worth very little.
In the trading world, a golden cross occurs when a stock's short-term moving average rises above its long-term moving average.
Good 'til Canceled, or GTC, is used to refer to an order to buy or sell a stock at a set price that remains in effect until the investor cancels the order or the trade is completed.
Good this month refers to a type of trading order is automatically canceled if it is not filled by the end of the month in which the client makes the order.
Good this week is a type of trade order that is automatically canceled if it is not filled by the end of the week in which the client makes the order.
A good through order is a trade order with a deadline. Usually, it is a stop loss or limit order. 
In the investing world, a gray market exists when people begin trading shares that have not been issued yet. In the business world, a gray market is the novel but not always illegal process of obtaining
A green shoe option is a clause contained in the underwriting agreement of an initial public offering (IPO). Also known as an over-allotment provision, it allows the underwriting syndicate to buy up to an
Growth at a reasonable price (GARP) is an investment strategy that combines tenets of both growth and value investing by finding companies that show consistent earnings growth but don't sell at overly
A growth company is characterized by a rate of growth higher than that of the overall economy.
H-shares are shares of Chinese companies that are listed on the Hong Kong Stock Exchange.
A half stock has a par value that is 50% of what is considered normal.
The healthcare sector is the sector of the economy made up of companies that specialize in products and services related to health and medical care.
In the investing world, heavy refers to a security whose price can't seem to rise.
High frequency trading (HFT) is a computerized trading strategy used to exploit fleeting market inefficiencies. These ultra-short-term positions can be in a wide range of assets: stocks, options, futures
A hybrid security is a security that has characteristics of one or more asset classes.
An Icahn Lift is a rise in stock price associated with an investment by famed activist shareholder Carl Icahn.
An iceberg order is a large order that has been split into several smaller orders to conceal the "real" size of the order.
An impact day is the day on which a company's secondary offering begins trading.
An index is a statistical aggregate that measures change. In finance, they usually refer to measures of stock market performance or economic performance.
An initial margin, or initial margin requirement, is the amount an investor must pay in cash for securities before the broker will lend money to that investor to buy more securities. This borrowing gives
An initial public offering (IPO) refers to the first time a company publicly sells shares of its stock on the open market. It is also known as "going public."
Insider information refers to confidential information about a company that has not been publicly disclosed.
Insider trading refers to the trading of securities by corporate insiders such as managers or executives. Insider trading can be legal or illegal depending on if the information used to base the trade is
Interlisting is the listing of any security on two or more different exchanges.
IPO Lockup refers to the period of time after a company initially goes public during which company insiders are not allowed to sell company shares.
Issued shares include all shares that are currently owned by stockholders, company officials, and investors in the public domain. Issued shares do not include shares repurchased by a company.
The January Effect refers to a pattern exhibited by stocks -- particularly small-cap stocks -- in which they've shown a tendency to rise during the last several trading days in December and then continue
Jobber is a slang term for an agent in business, particularly trading.
In the trading world, kill refers to half of a fill or kill (FOK) order, which is a client's instruction to his or her broker to either fill an order immediately and completely or cancel the entire order
Laggard describes a stock that fails to perform as well as the overall market or a group of peers.
A large-value stock is a stock whose intrinsic value is greater than its market value.
Last-sale reporting refers to the submission of trade details in the Nasdaq market.
In the securities industry a lead underwriter is a company, usually an investment bank, that helps companies introduce their new securities into the market by leading a syndicate of investment banks to
The left-hand side of a stock quote is the bid.
/*-->*/ A level I quote is the current best bid and offer for a security that trades on the Nasdaq or over-the-counter markets.
A level II quote is a set of real-time trading information, including the best bid/ask prices from market makers, for a security that trades on the Nasdaq or over the counter (OTC) markets.
A level III quote is pricing information made available to registered Nasdaq market makers.
Limit orders allow you to set a price at which you want to buy or sell a stock. Unlike market orders, your purchase or sale will go though only when the price reaches the level that you specify.
A listed security is a stock, bond, derivative, ETF, mutual fund, or other security that trades on a national exchange such as the New York Stock exchange or the Nasdaq.
The Little Board is a nickname for the American Stock Exchange (AMEX). The AMEX is a stock and options exchange in New York. The AMEX was called the New York Curb Market until 1953 because it started on
A locked market, also called a daily trading limit, is the maximum gain or loss allowed on a derivative or currency in one trading day.
A lot is a securities trade for a “standard” number of trading units. In stock trading, a lot is 100 shares (also called a "round lot"). However, inactive stocks generally trade in 10-share lots.
Main Street refers collectively to members of the general population who invest in the capital markets.
A maintenance margin is a limit after which a brokerage firm can make a margin call.
A majority shareholder refers to a shareholder who owns over 50% of stock in a company.
Making a market is a process whereby a person or brokerage house that is always prepared to buy and sell securities in order to provide liquidity to the markets.
A management buyout (MBO) occurs when the current management of a company acquires a controlling interest or the entire interest in a company from existing shareholders.
A market average is the general level of prices in a stock market as expressed by a basket of frequently traded stocks.
Market breadth is a ratio that compares the total number of rising stocks to the total number of falling stocks.
Market capitalization refers to the value of a company's outstanding shares. 
A market correction refers to a price decline of at least 10% of any security or market index following a temporary upswing in market prices.
Market depth refers to a security's ability to tolerate the execution of large market orders without having a large effect on the security's price.
The strong form of market efficiency essentially proclaims that it is impossible to consistently outperform the market, particularly in the short term, because it is impossible to predict stock prices.
A market identifier code (MIC) is a four-letter or digit abbreviation that represents a specific stock market.
Market if touched (MIT) is an order that will be executed only if a security reaches (touches) a specific price.
A market maker is a person or brokerage house that is always prepared to buy and sell securities in order to provide liquidity to the markets.
A market maker spread is the difference between the bid and ask prices offered by a market maker.
Market momentum is the perceived strength of a positive or negative change in market prices.
Market on close (MOC) is a market order that is executed at the latest possible time during a trading session.
Market overhang refers to a decline in a stock's price driven by expectations that the price will experience further declines.
A market proxy is a variable that theoretically simulates the behavior of the overall market.
Market psychology refers to the manner in which the market reflects its participants' collective emotional state.
Market sentiment is the general feeling about the climate of the market as expressed by the direction of market prices.
A market swoon is an abrupt fall in the value of a market index.
Mega cap is a designation for any company with a market capitalization in excess of $200 billion.
Generally speaking, a micro cap is a company worth between $50 million and $300 million.
A mid cap is generally described as a company with a market capitalization between $2 billion and $10 billion.
"Mine" and "yours" are colloquial references to buy and sell transactions.
Also known as a downtick, a minus tick occurs when a security sells at a price less than the preceding sale. A minus tick is the opposite of an uptick.
The Monday effect predicts that performance in equity markets will reflect the trends that were influencing the market toward the end of trading the previous Friday.
Naked shorting refers to the practice of shorting units of a given security in advance of ensuring whether or not they can be borrowed.
A nano cap is a company with the smallest market capitalizations in the market place, typically below $50 million.
Nasdaq, which stands for the National Association of Securities Dealers Automated Quotation system, is a computerized system for stock trading.
The Nasdaq 100 index is one of the most frequently cited "technology" indexes.
The Nasdaq Composite is a broad market index that encompasses about 4,000 issues traded on the NASDAQ National Market. The index first started in February of 1971 with a base value of 100.
The National Best Bid and Offer (NBBO) is the highest bid and lowest offer price quoted on Nasdaq.
The national market system (NMS) is a system that regulates the disclosure and execution of trades across all exchanges.  
In the trading world, negative obligation refers to a stock specialist's responsibility to avoid buying or selling shares for their own accounts in order to match orders. The New York Stock Exchange
Net liquid assets are cash and securities that can be converted to cash quickly, minus current liabilities.
The net realizable value (NRV) of an asset is the money a seller expects to receive for the sale of an asset after deducting the costs of selling or disposing of the asset.
In finance, net short refers to holding more short positions than long positions in a given security, sector or portfolio. Net short is the opposite of net long.
Net unrealized appreciation (NUA) refers to the difference between the cost of a security or investment and the current market value of that security or investment.
In trading, net volume refers to the difference between a security's uptick volume and its downtick volume.
A new issue is a never-before-offered security.
The New York Stock Exchange (NYSE) is the oldest stock exchange in the United States, and it's located on Wall Street in lower Manhattan. It is the world's largest stock exchange by market capitalization
The New York Stock Exchange (NYSE) is open Monday through Friday from 9:30 a.m. to 4:00 p.m. Eastern Time. However, the NYSE does observe certain holidays.
The October Effect is the theory that stock prices will fall in the month of October.
An odd lot is an order for anything less than 100 shares. This is the opposite of a "round lot," which are orders in multiples of 100 shares. However, thinly traded stocks sometimes trade in 10-share
The odd-lot theory states that an increase in odd lot activity is a buy signal in a market.
An off-floor order is an investor's request to a broker to buy or sell securities.
A One-Cancels-All (OCA) order is a group of limit orders linked together within a brokerage account. If one order is executed, all other linked orders are automatically canceled.
In trading, a one-cancels-the-other order is an instruction given when placing two orders simultaneously. If one part of an order on a security is executed, then the other part is canceled. Such an order
One-sided markets can be volatile and very stressful for market makers. Market makers are obligated to facilitate trading in particular stocks even if doing so is inconvenient or less profitable. In our
In the stock markets, open refers to the beginning of the trading day or the price of a security at the beginning of the trading day.
An open order is an instruction to buy or sell securities that has not been executed or cancelled.  Another term used is "backlog order."
Opening bell refers to the beginning of the trading day on an exchange. However, in the United States, only the New York Stock Exchange (NYSE) rings an actual bell every day.
The open is the start of a new day, though it is important to note that that doesn't necessarily mean trading hasn't been going on right before the open. After-hours markets remain open as do other
Opportunity cost refers to the value forgone in order to make one particular investment instead of another.
Original cost is the total cost attributed to purchasing an asset.
Outstanding shares are common stock authorized by the company, issued, purchased and held by investors.
An over the counter security is traded through a dealer network rather than through a centralized, formal exchange (such as the NYSE, Nasdaq, or London Stock Exchange). Assets traded OTC are usually
The Over the Counter Bulletin Board (OTCBB) is a quotation service offered by the National Association of Securities Dealers (NASD) that provides quote and volume information for securities traded over
The over-the-counter (OTC) market, also known as the over-the-counter bulletin board (OTCBB), is a quotation service offered by the National Association of Securities Dealers (NASD) that provides quote
Overweight refers to a given security which has been disproportionately allocated in an investment portfolio relative to a benchmark. It is the opposite of underweight.
The Pacific Exchange (PCX) was a stock exchange based in San Francisco and Los Angeles.
In the finance world, painting the tape means to trade securities in a manipulative way in order to influence the reported trading data for those securities.
A pairoff, also known as "pairing off," occurs when a brokerage firm buys and sells short and long positions that offset one another and then settles those trades in cash.
Panic buying refers to the purchase of a stock immediately after a sudden, substantial price increase.
Panic selling is the sudden and widespread selling of a security.
Paper trading is simulating market trading (buying and selling). 
Participating preferred stock gives stock holders priority over common stock holders for payment of dividends and proceeds from liquidation of a company.
Penny stocks are small-cap equity shares that trade in the over-the-counter market for prices between several cents and ten dollars.
The Philadelphia Gold and Silver Index (Nasdaq: XAU) is traded on the Philadelphia Stock Exchange and is made up of 16 precious metal mining companies.
The Philadelphia Semiconductor Index, or SOX, is an index created by and traded on the Philadelphia Stock Exchange. It was introduced on December 1, 1993 with a split-adjusted value of 100. The SOX is the
Pink Sheets is a publication compiled daily by the National Quotation Bureau that shows over-the-counter (OTC) stocks' bid and ask prices and the dealers that exchange them. 
Political risk is the risk of financial, market or personnel losses because of political decisions or disruptions. Also known as "geopolitical risk."
A Ponzi scheme is an investment scam that pays existing investors out of money invested by new investors, giving the appearance of earnings and profits where there are none. Ponzi schemes are also known
Portfolio management refers to the professional management of securities and other assets. Also referred to as "asset management" and "wealth management."
Position limit refers to the ceiling placed on the number of contracts on a single security which may be held by an individual or cooperative group.
Pre-market trading is the trading that occurs on electronic market exchanges before regular stock market trading hours begin.
Preferred shares represent an ownership stake in a company -- in other words, a claim on its assets and earnings. However, as the term suggests, "preferred" shares carry certain advantages. While
Like shares of common stock, shares of preferred stock represent an ownership stake in a company -- in other words, a claim on its assets and earnings. However, as the term suggests, "preferred" stock
Preservation of capital is an investment strategy that focuses on preventing any losses of an investment's face value.
Previous close shows what the price of a stock or market index was when the market closed on the previous trading day.
A price band is a price floor and a cap between which a seller will let buyers place bids on a security, usually during an initial public offering (IPO)
In the stock market, a price change is the difference in trading prices from one period to the next or the difference between the daily opening and closing prices of a share of stock.
A price ratchet is a trigger that changes the price of a security.
Price risk is simply the risk that the price of a security will fall.
A price target is an analyst's expectation for the future price of a security. 
Price tension refers to the presence of a large bid-ask spread.
Price transparency is the ability to know all of the bid prices, ask prices, and trading quantities for a given stock, good, or service at any point in time.
A price-weighted index is an index in which the member companies are weighted in proportion to their price per share, rather than by number of shares outstanding, market capitalization or other factors.
Profit taking is the act of selling stock to take advantage of a sharp rise in the stock price.
Program trading refers to automated trading by investors using computer programs. 
An investor employs a protective put strategy when he purchases a put option of a stock of which he already owns shares.
A protective stop is a stop-loss order put in place to guard against losses beyond a specific threshold.
A public limited company is a company which offers equity shares with limited liability to public investors on a registered exchange.
A public offering is a process of issuing new securities for sale to the public.  
Public offering price (POP) refers to the price at which shares of a company are issued in an initial public offering (IPO)
Pump and dump refers to an investment scam wherein optimistic, but untrue, statements are publicized about a specific stock in order to artificially increase the price through higher demand.
Pyramiding refers to purchasing additional units of a security with unrealized profits on open trades.
The Q ratio is a measure of how overpriced or underpriced the whole stock market is. It is based on Tobin's Q, which measures a firm's assets in relation to its market value. The formula for Tobin's Q is
Quadrix is a system that calculates stock values.
Quadruple witching refers to the third Friday of every March, June, September and December. On these days, market index futures, market index options, stock options and stock futures expire, usually
A qualified special representative agreement (QSR) is a National Securities Clearing Corporation (NSCC) agreement that allows one broker-dealer to send a trade to a clearinghouse on behalf of another
A qualified stock option is a type of company share option granted exclusively to employees.  It confers an income tax benefit when exercised. Qualified stock options are also referred to as "incentive
Quantitative trading is an investment strategy based on picking investments solely on mathematical analysis.
Quotation is the long form of quote, which refers to stock quote. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the
A quote is an estimate of price or a price at which one party is willing to buy or sell from the other. In the trading markets, a quote is the bid and ask price for a security.  
Quote stuffing occurs when traders place a lot of buy or sell orders on a security and then cancel them immediately afterward, thereby manipulating the market price of the security. Manipulating the price
Quoted price refers to stock, bond or other security quotes. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the
A rally is a period of hours, days, weeks, months, or sometimes years during which securities prices consistently rise.  
The random walk theory states that market and securities prices are random and not influenced by past events. The idea is also referred to as the "weak form efficient-market hypothesis."   Princeton
A real-time quote is a stock quote that feeds directly from the exchange and does not have a time delay.  
Rebalancing is the adjustment to an investment portfolio that realigns the investor's holdings with their targeted allocation of assets.
A recession-proof investment does well or at least remains stable during economic contractions.
A record high is the highest price a security achieves in a given time period.
A record low is the lowest price a security achieves in a given time period.  
Restricted stock is stock that the owner cannot sell immediately or under certain conditions.
A retracement is a temporary reversal in the movement of a stock's price. 
A reverse split is a consolidation of a corporation's shares according to a predetermined ratio.
A risk-free asset is an asset that provides a virtually guaranteed return. 
A road show is a presentation made about an investment opportunity usually given by a representative of a company at the offices of potential investors. 
A round lot is a securities trade for 100 trading units. In stock trading, a round lot is 100 shares. However, inactive stocks generally trade in 10-share lots.
The Russell 1000 Index is designed to track the performance of most major large-cap companies. Though it is not usually cited by individual investors, it is the third most widely used benchmark by money
The Russell 2000 index measures the performance of the 2,000 smallest companies in the Russell 3000 index. The Frank Russell Company created the index in 1984, and it was one of the first broad benchmarks
The S&P 500 Index is a diverse index that includes 500 American companies that represent over 70% of the total market capitalization of the U.S. stock market. 
The S&P Small- Cap 600 Index consists of 600 small-cap stocks.  A small-cap company is generally defined as a stock with a market capitalization between $300 million and $2 billion. The S&P 600 is
The S&P Europe 350 index is made up of 350 individual European company stocks drawn from 17 major European markets and represents approximately 70% of the region's market capitalization.
The S&P Frontier Broad Market Index (also known as the S&P Frontier BMI) measures the performance of markets in 34 small countries. The individual country indices that make up the S&P Frontier
The S&P Global 1200 index is comprised of seven indices with stocks from 29 representative countries. The index is used as a benchmark for global equity markets.
The S&P Global Broad Market Index (also known as the S&P Global BMI) is a widely encompassing, rules-based index that measures global stock market performance.
The S&P Global Equity Index series is comprised of three indices: The S&P Frontier Broad Market Index, The S&P Global Broad Market Index and the S&P/IFCI.
The S&P Mid-Cap 400 Index tracks a diverse basket of medium-sized U.S. firms. A mid-cap stock is broadly defined as a company with a market capitalization ranging from about $2 billion to $10 billion
The S&P/IFCI Composite is a liquid and investable leading emerging market index. It is a subset of the S&P Emerging Plus Broad Market Index, with the addition of South Korea.
Same-day substitution is the act of withdrawing money from and adding money to a margin account on the same day.  
Samurai Market is slang that refers to the Japanese stock market.
A Santa Claus rally is a surge in the stock market that occurs between Christmas and New Year's Day. 
Saturday night specials are illegal rules that give preferential treatment to some shareholders and pressure others during tender offers.
The term scalpers refers to securities traders who manipulate the market.  Scalpers may also refer to traders who earn relatively small amounts of money from the arbitrage between bid prices and ask
Scalping is a form of day trading that involves earning small profits on large volumes of securities.
A seasoned issue, also called follow-on offering or secondary offering, is a sale of stock by a company or by an existing shareholder of a company that is already publicly held.
A seat is a license to trade on the floor of the New York Stock Exchange, either as an agent for someone else or for his or her own personal accounts (in which case, the person is called a floor trader
A secondary offering refers to a large-scale market sale of a company's shares by a major shareholder.
Sector rotation is a strategy based on moving investments across business sectors to take advantage of cyclical trends in the overall economy.
A secular market is a market that is for all intents and purposes captive to broader economic forces or traumas.  
A sell-off is the rapid selling of a security leading to a sharp decline in its price. 
Settlement price refers to the market price of a derivatives contract at the close of a trading day.
Share classes refers to the division of a company's equity into different classes, which have different rights.
A share purchase right is an instrument that entitles the holder to purchase a specified number of shares at a specified price.
Shareholder value added (SVA) represents a company's worth to shareholders in the absence of liabilities and capital costs.
Shares outstanding refers to all shares currently owned by stockholders, company officials, and investors in the public domain, but does not include shares repurchased by a company.
A shelf offering is a sale of stock by a company over time.
Short covering refers to the practice of purchasing securities to cover an open short position. To close out a position, a trader purchases the same number and type of shares that he sold short.
Short interest is the number of shares or units of a security that have been sold short and not yet covered or repurchased. It is typically expressed as a percentage of the total securities outstanding.
Small-cap stock refers to a company with a market capitalization (calculated by taking a firm's current share price and multiplying that figure by the total number of shares outstanding) near the low end
Socially responsible investment (SRI) is an investment strategy that seeks both financial return and social good.
Specific risk is a discrete risk to which only a specific asset or type of asset is exposed. It is the opposite of systematic risk.
Speculation is a method of short-term investing whereby traders essentially bet on the direction an asset's price will move.
A speculator is a person or an entity that trades securities essentially as bets that the price will go up or down, and as such, typically has an above-average risk tolerance.
Also called the cash market or the physical market, the spot market is where assets are sold for cash and delivered immediately.
The spot price is the current market price at which an asset is bought or sold for immediate payment and delivery.  It is differentiated from the forward price or the futures price, which are prices at
A spot trade is an asset or commodity transacted and delivered immediately.
A spread trade occurs when an investor simultaneously buys and sells two related securities that are bundled as a single unit. Each of the transactions is referred to as a "leg."
Standard & Poor's (S&P) is a financial services company and a division of The McGraw-Hill Companies, Inc. S&P does business in six main areas: credit ratings, indices, equity research, risk
A stock market index measures the change in the stock prices of the index's components.
A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the other. A stock quote consists of a bid price and an ask price.
Stock Return Income Debt Securities (STRIDES) are callable debt securities linked to an underlying stock. STRIDES are similar to callable preferred shares in that they take part in the fluctuation of the
A stock split is a procedure that increases or decreases a corporation's total number of shares outstanding without altering the firm's market value or the proportionate ownership interest of existing
A stock symbol -- also known as a ticker symbol -- is a string of letters used to identify a stock, bond, mutual fund, ETF or other security traded on an exchange.
A stockbroker is a person or a company that acts as an intermediary between buyers and sellers of stocks.
A stop order (also called a stop-loss order or stop market order) is a trade order whereby the investor instructs the broker to automatically sell the stock if it drops to a certain price.
A stop-limit order is a conditional type of stock trading that combines the features of a stop order and a limit order. Once a stock reaches the stop price, a limit order is automatically triggered to buy
A stop-loss order (also called a stop order or stop market order) is an order whereby the investor instructs the broker to automatically sell the stock if it drops to a certain price.
Strategic asset allocation is the practice of realigning a portfolio's asset composition in order to accommodate changes in market climate.
The Super Bowl Indicator, also known as the Super Bowl Effect, is a theory that stock prices will fall if the AFC team wins the Super Bowl.
A surrender fee is a fee paid by an annuity investor to withdraw some or all of his or her principal before the annuity's surrender period has expired.
The surrender period is the time an investor of annuity must wait until they may take a withdrawal from their annuity without paying a penalty or surrender fee.
Tailgating occurs when a broker buys or sells a security after doing the same for a client.
The takedown is the price that an underwriter pays for a new issue.  
When trading volume is so high that the ticker quotes are lagging behind to keep up with reporting the trades, we say the tape is late.
Tape shredding occurs when a broker splits a large buy or sell order into a lot of smaller buy or sell orders.
A tenbagger is a stock that increases by a factor of ten.
A tender offer is a proposal by an investor to all current shareholders of a publicly traded corporation to tender their shares for sale at a certain price at a certain time. 
The Big Board, a popular term for the New York Stock Exchange (NYSE), is the oldest stock exchange in the United States.  It's located on Wall Street in lower Manhattan, and is the world's largest stock
The opposite of a liquid market, a thin market is characterized by a small number of participants and high price volatility. 
Thinly traded refers to an investor's inability to sell his or her investment at or near its value in a short amount of time.
The third market is an over-the-counter (OTC) market in which brokers and large institutional investors trade exchange-listed securities between one another.
A tick is a minimum change in the price of a security. Also known as a downtick, a minus tick occurs when a security sells at a price less than the preceding sale. A minus tick is the opposite of an
Also called short sale rules, tick test rules are restrictions on when traders can short a stock.
A ticker symbol -- also known as a stock symbol -- is a string of letters used to identify a stock, bond, mutual fund, ETF or other security traded on an exchange.
Ticker tape was the paper strip used to transmit stock prices before the use of computers.
Total cost of ownership is an asset's cost to the purchaser in addition to the costs associated with using and maintaining it.
Toxic assets are assets that have experienced a significant drop in value and lack an active market where they can be sold. Toxic assets are also known as troubled assets.
A tracking stock is a security that is issued to track the performance of a wholly-owned subsidiary.
A trailing stop loss order, commonly referred to as a "trailing stop", is a special type of trade order where the stop-loss price is not set at a single, absolute dollar amount, but instead is set at a
Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the public. It represents the difference between the number of shares issued and the number of shares outstanding
On the third Friday of every March, June, September, and December, contracts for stock index futures, stock index options, and stock options all expire at the end of the day. The triple witching hour is
Troubled assets are assets that have experienced a significant drop in value and lack an active market where they can be sold. Troubled assets are also known as toxic assets. 
Trust preferred shares (TruPS) are preferred shares typically issued by banks. And although they're called "preferred shares," there is a big difference between trust preferred stock and traditional
Underpricing occurs in the finance world when a company prices its shares too low in an initial public offering.
In the securities industry, undersubscribed means that an offering does not have enough buyers.
A unitholder is an investor who owns the securities of a trust, like a real estate investment trust (REIT) or a master limited partnership (MLP). The securities issued by trusts and MLPs are called units
An Unsponsored American Depository Receipt (ADR), though backed by the common stock of an offshore company, is not directly sanctioned by that company and renders the holder un-entitled to the shareholder
The term unsubscribed describes the portion of the shares in an IPO that are not sold prior to the IPO.
Upside reward refers to an investment's potential gain in value.
Also called dark pools, upstairs trading refers to trading activity that occurs directly between parties without the use of an exchange, thereby keeping the transaction private.
Upthrusts are false breakouts that can trap the unsuspecting trader. Upthrust patterns quickly reverse, with the stock or index then often testing the opposite end of the trading range.
Uptick refers to the increase in the market price of a security over the preceding transaction.
Known as Rule 10(a)(1) of the Securities Exchange Act of 1934, the uptick rule allows investors to short a security only at a price higher than the security's last trade.
Uptick volume is the number of shares of a particular stock that trades when the price is increasing.
A value stock is a security that is trading at a lower price than expected given the performance of the company and key performance indicators of the stock itself.
The Volatility Index (VIX) is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market. When sentiment reaches one extreme or the other, the market
Volume represents the total number of securities traded during a certain period of time.
In the finance world, a wall of worry is an increasing amount of negative information about a security or about the market.
Wallflower is slang for a stock that analysts and investors tend to neglect.
A wash occurs when two actions cancel each other out (such as a gain and an equal loss), effectively creating a break-even situation.
A wash sale occurs when an investor sells a security at a loss but then purchases the same or a substantially similar security within 30 days of the sale.
Wash trading occurs when an investor sells a security at a loss, then purchases the same or a substantially similar security within 30 days of the sale.
A wasting asset is a property or security that has a limited life and loses value over its life. 
Watered stock is stock that is issued at a price far higher than the value of the issuer's assets.
The weekend effect is a theory that stock prices rise on Monday and fall on Friday.
Weighted Average Market Capitalization refers to a stock market index in which larger companies (i.e. with higher market capitalization) have more influence on the index's performance.
A trader is said to be "whipsawed" when the price of a security suddenly moves in the opposite direction of a trade that he just placed. 
A whisper number is an unofficial, unpublished earnings per share (EPS) forecast for a public company. It is not the same as a consensus estimate.
Widow and orphan stocks are low-risk securities that pay high dividends. 
The Wilshire 5000 Index is considered the "total market index." Designed to track the value of the entire stock market, the index was started in 1974 by Wilshire Associates soon after computers made the
X is an extension to a ticker symbol. It denotes that the security is a mutual fund.  
XDIS is a symbol to indicate that a security is trading ex-dividend (or ex-distribution, as the abbreviation suggests).
XRT is an extension to a ticker symbol. It denotes that the security is trading without rights.
XW is a ticker-symbol extension that signifies that a stock is trading ex-warrant.
Y is a ticker-symbol extension that signifies that a stock is an American Depository Receipt.
Yankee Market is slang for the U.S. stock market.
Yo-yo is slang describing volatility in the market.
Also called the continuous auction method, the Zaraba method is a method of trading securities.
A zero-beta portfolio is a portfolio built with zero systematic risk.
Also called a zero minus tick, a zero downtick is a trade that occurs at the same price as the trade preceding it but lower than the last trade at a different price. A zero downtick is the opposite of a
Also called a zero downtick, a zero minus tick is a trade that occurs at the same price as the trade preceding it but lower than the last trade at a different price. A zero minus tick is the opposite of a
Also called a zero uptick, a zero plus tick is a trade that occurs at the same price as the trade preceding it but higher than the last trade at a different price. A zero plus tick is the opposite of a