Posted by R. MAK. on December 13, 2009 ·
When you are willing to buy an amount of stocks for which you can’t completely fund, then you may be able to borrow the money you require from your broker. Such type of loan is referred to as margin loan. And, similar to any other loan, it comes with…
Posted by R. MAK. on December 12, 2009 ·
Value stock is sometimes known as under-value stocks. The purpose of value stock is to get a bargain. A value stock is considered as a good stock option. It is currently trading at a lower unit price than what is indicated by the fundamentals that are associated…
Posted by R. MAK. on December 11, 2009 ·
Trading instructions that are issued by an investor to a broker are known as day orders. The order becomes null and void in case if the day order is not executed during the same trading session or day. In most markets, every order is considered to be a day order unless the investor specify it to be otherwise. Due to this approach it becomes necessary for…
Posted by R. MAK. on December 10, 2009 ·
An underlier is known as a commodity or some form of security by which the backing is provided for the trading of shares. Sometimes the underlier is referred to as an underlying security. The underlier is that security that may be called for delivery if in case an option associated with the transaction is called or exercised. Generally, the underlier can also be such form of security that cannot be delivered, but will be settled with…
Posted by R. MAK. on December 8, 2009 ·
Tick tests was the name given to a method that was once employed in order to determine when circumstances were right for the execution of a short sale. To a great extent, this type of testing method was focused mainly on the use within those markets that were based in the United States. During the decade of the 1930’s the tick test approach was…
Posted by R. MAK. on December 8, 2009 ·
The price that is associated with a stop order is referred to as stop price. When it comes to executing purchases or sales of a given stock or other security then the establishment of this price is very important.The investor must provide the broker with a price at which…
Posted by R. MAK. on December 6, 2009 ·
Large cap is known as an investing abbreviation for Large Capitalization. It is a reference to the market value or “capitalization” of a stock that is listed on public exchange such as the Dow Jones stock exchange. It is said that a stock or company is a large cap if it’s market value is between…
Posted by R. MAK. on December 5, 2009 ·
Asset play has to deal with determining the relationship between a given stock and the other assets that are in the possession of the stock issuer. Corporations as well as small businesses that issue stock to outside investors might be…
Posted by R. MAK. on December 3, 2009 ·
An ETF is an abbreviation of “Exchange Traded Fund”. It is that type of investment that is based on the stock market. An ETF is considered to be an investment plan that can be traded on many of the stock exchanges around the world as shares. Generally, an ETF works for the replication of a standard element within the stock exchange, such as the Standard & Poor 500 index.There is a probability that…
Posted by R. MAK. on December 1, 2009 ·
The Securities Investor Protection Corporation (SIPC) is a name given to an organization that compensates investors in case if the firms handling their funds and securities go bankrupt. If an SIPC member goes bankrupt, then the SIPC steps in, it liquidates the firm’s assets and then give compensation to the investors for up to…
