The act of a market maker failing to honor a posted bid or ask even though the price and quantity are valid. Taobiz explains Backing Away The NASD does not condone the act of backing away from transactions and will take disciplinary action if certain regulations are broken. For example, if a market maker backs away from transactions near the end of a trading day, he or she is violating NASD regulations.
Slang that refers to the purchase of a large position in a stock or other financial asset by an investor or trader. Typically, when someone is willing to back up the truck on a financial asset, this implies that they're extremely bullish on that asset's performance. Taobiz explains Back Up The Truck For example, if an analyst recommends that it is time to start backing up the truck on XYZ stock, this means that he or she is extremely confident and upbeat about how well XYZ stock will be doing in the foreseeable future. The term refers to the imagery derived from a truck backing up to a warehouse or some other commercial building to load up goods.
Slang for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. Taobiz explains Barefoot Pilgrim Being labeled a barefoot pilgrim is far from enviable. It is usually the result of taking on more risk than necessary or entering investments carelessly, without doing the proper research.
One of Spain's four major securities exchanges. Established in 1915 during the industrial boom and coinciding with the emergence of the region's first corporations, the Barcelona Stock Exchange (in Spanish, the Bolsa de Barcelona) trades warrants, ETFs, public debt, Latin American stocks and more, using both computer-assisted trading and open-outcry floor trading. Taobiz explains Barcelona Stock Exchange (BAR) .BC The Barcelona Stock Exchange is a member of Bolsas y Mercados Españoles, an organization designed to streamline Spain's four major securities exchanges (Madrid, Valencia, Barcelona and Bilbao). BAR's official index is the BCN-100 Index, a trade-weighted index consisting of the exchange's 100 most-traded companies. It also has several other indexes, including the BCN PER-30, BCN ROE-30, BCN MID-50 and BCN INDEXCAT.
A difficult situation that a company or individual experiences that will result in either success or failure. Examples include Initial Public Offerings (IPOs), a new CEO hired to manage a struggling company, and hostile takeover attempts. Taobiz explains Baptism of Fire A baptism of fire will either weaken or strengthen the entity involved. The phrase is an allusion to the Bible in both Acts 2:3-4 and Matthew 3:11.
A method of transacting different security orders that involves the accumulation of orders and their simultaneous execution. Taobiz explains Batch Trading For example, a security experiencing a relatively high volume of trades can have its orders batched and executed at the same time when the desired price is reached. Batch trading is more efficient for market makers and specialists because a large number of accumulated orders can be executed with fewer transactions. In the U.S., batch trading occurs for all orders sent to market after market hours. These orders are collected and batched until the market opens, at which time they are transacted all at once.
A single unit of at least 15 stocks that are used in program trading. Baskets are traded on both the NYSE and the CBOE for institutions and index arbitrageurs. Both instruments allow for the composite purchase of all of the stocks in the S&P 500 in a single trade. Baskets were created after the stock market crash in 1987 to better facilitate institutional trading on the index. Taobiz explains Basket Basket was also the nickname given to a specific type of financial instrument that briefly traded on the Philadelphia Stock Exchange in 1989. This security was removed from trading due to regulatory controversy over its nature. The baskets that traded on the other two exchanges eventually also ceased trading due to poor volume.
A category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. The basic materials sector includes the mining and refining of metals, chemical producers and forestry products. Taobiz explains Basic Materials Sector The basic materials sector is sensitive to changes in the business cycle. Because the sector supplies materials for construction, it depends on a strong economy. This sector is also sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.