Glossary
Glossary
The following is based on standard financial definitions. These
excerpts are provided for you out of courtesy and are based on
Frequently Asked Questions. Please note that while we here at
Real Time Markets believe that our product can assist you in your trading
endeavors, we can not advise you in anyway. That covers, but
is not limited to, stock picks, trading styles and techniques
or teaching you how to trade.
Advance
decline: the sum of the number of stocks that have advanced
and the number of stocks that have declined over a particular
period.
It’s the ratio of one to the other and shows the general
direction of the market.
After-Hours Trading: trading of stocks and bonds after regular
trading hours on organized exchanges. This may occur when there
is a major announcement (either positive or negative) on a company.
The price of the stock may therefore change drastically from
where it closed during regular trading hours.
Annual Report: yearly record of a corporation’s financial
condition distributed to shareholders under SEC regulations.
This report covers the company’s synopsis, balance sheet
and income statement.
Arm’s Index: a.k.a. the TRIN. The Real Time Markets symbol is TIPN.X
Ask a.k.a. the Offer: price at which a security or future is
offered for sale. It is normally the lowest price at which a
dealer will sell.
Barometer: provides a quick "snapshot" view of the
status of the studies at any particular point.
Bearish: symbolizes a prolonged down market movement.
Bid: price at which a buyer is prepared to pay for a security
or future.
Block: large quantity of shares traded.
Bond: interest-bearing government or corporate issue wherein
a preset price is paid along with the principal amount at maturity.
Bullish: symbolizes a prolonged upward market movement.
Call Option: the right to buy 100 shares of stock at a preset
price by a preset date in exchange for a premium.
Classified Stock: separation of equity into more than one class-
normally represented by class A and class B. In order to get
a class A stock, add an apostrophe and the class. ie: IBM’A
Commodities: a.k.a. Futures: bulk goods such as grains, metals,
foods, natural resources traded on a commodities exchange.
Common Stock: shares of ownership of a public corporation.
Composite Quotes: taking the last, high and close from the different
exchanges on which a multiple listed issue trades.
Day Trader: generally someone who purchases and sells a security
the same or next day.
Delisting: removal of a company’s security from the exchange
on which it trades.
Dividend: distribution of earnings to shareholders, generally
paid quarterly.
Dynamic: continuous updating as trades occur.
Index: statistical composite which measures change.
Intraday: within the current day.
Last: the most recent trade.
LEAPS: a.k.a. Long term Equity Anticipation Securities: long
term options, generally lasting 2 or more years.
Limit Order: order to buy or sell an issue at a specified price.
Mark to Market: adjust the value of a portfolio to current market
prices.
Mutual Funds: fund operated by an investment manager which raises
money from share holders and invests the collective money in
stocks, bonds, currencies or futures.
NASDAQ Level II: shows those Market Makers for a particular
NASDAQ issue. You see "depth" of the market for a particular
stock; i.e. how much demand, or strength there may be below the
Best Bid and Ask, which also may indicate the resistance in falling
(or rising) for the stock's price.
Open: starting point for securities when the market opens its
trading.
Option: the right to buy or sell shares at a preset price before
expiration.
OTC Bulletin Board: electronic listing of bid and ask quotations
of over the counter issues not meeting NASDAQ standards.
Portfolio: combined holdings tracking value.
Preferred Stock: premier classification of stock that pays preset
dividend rates.
Primary Market Quotes: the quotes and trades of an issue on
its primary exchange only.
Put Option: the right to sell shares of stock at a preset price
by a preset date in exchange for a premium.
SEC: a.k.a. the Securities and Exchange Commission
Size: number of shares available for buy or sell. Represented
by Bid x Ask.
Spread: the difference between two prices.
Static: non-dynamic displays- need to be refreshed manually.
Tick: upward or downward price movement.
Volatility: characteristic of an issue to rise or fall sharply
within the short term.
Calculated by the following formula:
1- Get Price Relatives = price on day / price on day x-1
2- Calculate log of each Price Relative and Sum all logs
? (Log (price on day x / price on day x-1))
3- Calculate the mean of the range of price relatives
? (Log
(price on day x / price on day x – 1)) / # price
relatives
4- Calculate the sum of the square of each price relative
? ((price on day x /price on day x-1)2)
5- Volatility is:
Square Root (253*(sum of the squares or price relatives (# of
price relatives(mean of the logs of price relatives)2)) / # of
price relatives
Yield: return on an investor’s capital.
Quotation: the combination of both the bid and ask.
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