The securities trading center in Thailand. Along with its regulator, Thailand's own Securities and Exchange Commission, the SET is designed to encourage public investment in local industries through information dissemination, investor education, securities listing and trading, and oversight of listed companies. Opened in 1975 as the Securities Exchange of Thailand under legislation passed in 1974, its name changed to the Stock Exchange of Thailand in 1991. Taobiz explains Stock Exchange of Thailand (SET) .BK Thailand's stated goals in establishing a securities market were to mobilize capital for national economic development and industrialization. The precursor to the Stock Exchange of Thailand was the privately owned Bangkok Stock Exchange. Established in 1962, it was the country's first official, regulated stock market. However, it saw little trading activity and eventually failed in the early 1970s because of limited investor understanding of the stock market and weak government support.
An identification code, consisting of seven alphanumeric characters, that is assigned to all securities trading on the London Stock Exchange and on other smaller exchanges in the U.K. Taobiz explains Stock Exchange Daily Official List - SEDOL U.K. stocks that do not trade in the U.S. can be identified by their SEDOL code.
A security that tracks a particular set of equities, similar to an index. A stock ETF is traded just as a normal share of stock is traded on an exchange, but unlike a mutual fund it will have its price adjusted throughout the day rather than at market close. This type of ETF is usually made up of stocks in a similar industry, such as energy, but can cover an index of equities as well. Watch: 4 Reasons To Invest In ETFs Taobiz explains Stock ETF A stock ETF allows an investor to gain exposure to a basket of equities without having to purchase individual shares. A stock ETF can be treated like a normal stock in that it can be shorted or purchased on margin. Like most ETFs, a stock ETF often carries a management fee or other type of expense, but this is typically lower than those found in a mutual fund.
A dividend payment made in the form of additional shares, rather than a cash payout. Also known as a "scrip dividend." Watch: Dividend Taobiz explains Stock Dividend Companies may decide to distribute stock to shareholders of record if the company's availability of liquid cash is in short supply. These distributions are generally acknowledged in the form of fractions paid per existing share. An example would be a company issuing a stock dividend of 0.05 shares for each single share held.
The evolution of a stock's price from an early uptrend to a price high and eventually to a downtrend. The stock cycle is a buy-and-sell cycle that occurs over several years and has four stages: 1. Accumulation 2. Markup 3. Distribution 4. Markdown Taobiz explains Stock Cycle The stock cycle has expansion and contraction periods, much like the economic cycle. It can be used for portfolio management allocation, allowing for more investment during the accumulation and markup phases and less investment during the distribution and markdown phases.
The physical piece of paper representing ownership in a company. Stock certificates will include information such as the number of shares owned, the date, an identification number, usually a corporate seal, and signatures. They are a bit bigger than normal piece of paper and most of them have intricate designs to discourage fraudulent replication. Taobiz explains Stock Certificate Stocks are the foundation of nearly every portfolio and they represent partial ownership in a company. Usually the records of ownership are kept in electronic form but you can request a paper version. Each certificate starts out as a standard design which might change throughout the years, then the date, identification number, and other information is added. Most signatures of executives are printed on the certificate but some will actually be signed with a pen.
A right, usually granted to an employee, to receive a bonus equal to the appreciation in the company's stock over a specified period. Like employee stock options, SARs benefit the holder with an increase in stock price; the difference is that the employee is not required to pay the exercise price (as with an employee stock option), but rather just receives the amount of the increase in cash or stock. Taobiz explains Stock Appreciation Right - SAR For example, say an employee is given 100 SARs. Good fortune shines and the stock increases $50 per share over three years. As a result, the employee gets $5,000 (100 SARs x $50 = $5,000). The main benefit with SARs is that the employee does not have to purchase anything to receive the proceeds.
Stock analysis is a term that refers to the evaluation of a particular trading instrument, an investment sector or the market as a whole. Stock analysts attempt to determine the future activity of an instrument, sector or market. There are two basic types of stock analysis: fundamental analysis and technical analysis. Fundamental analysis concentrates on data from sources including financial records, economic reports, company assets and market share. Technical analysis focuses on the study of past market action to predict future price movement. Watch: What Are Stocks? Taobiz explains Stock Analysis Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempts to gain an edge in the markets by making informed decisions. Many people who subscribe to fundamental analysis don't hold much faith in technical analysis, and vice versa.