A situation in which an order is placed, but not executed, because of a previously sent order involving the same price. Depending on the exchange's priority rules, this can also happen when two bids are made at the same time with identical prices; only the larger order will be executed. Taobiz explains Stock Ahead For example, if two orders - one for 1,000 shares, the other for 500 shares - are placed for XYZ stock at the same price, the order for 1,000 shares would be executed and the order for 500 shares would not be made because there was a "stock ahead".
A severe downturn in equity prices that occurred in October of 1929 in the United States, and which marked the end of the "Roaring Twenties." The crash of 1929 did not occur in one day, but was spread out over a two-week period beginning in mid-October. The first portion of the crash occurred on October 24, a day known as Black Thursday. The following week brought Black Monday (Oct. 28) and Black Tuesday (Oct. 29) – the Dow Jones Industrial Average fell more than 20% over those two days. Pre-existing selling pressures and fear in the stock market were exasperated by a flood of sell orders that shut down the ticker-tape service that provided stock prices to traders. With key information missing from the markets, selling intensified even further. Despite a few attempts at recovery, the stock market continued to languish, eventually falling almost 90% from its peak in 1929. Taobiz explains Stock Market Crash Of 1929 The lead-up to October 1929 saw equity prices rise to all-time high multiples of more than 30 times earnings, and the benchmark Dow Jones Industrial Average (DJIA) had risen 500% in just five years! This type of hyper-growth has shown itself to be unsustainable over time, as markets generally perform their best when they can grow steadily. It took over 25 years for the DJIA to get back to the highs of the 1929 market, as the U.S. economy suffered through what we now call the Great Depression. Major new legislative and regulatory changes were enacted following the speculative bubble and crash of the 1920s in an effort to prevent the same situation from happening again.
A tool investors can use to filter stocks given certain criteria of their choice. Taobiz explains Stock Screener By using a stock screening tool an investor is able to follow a strict set of criteria that he or she requires prior to investing in a company. For example, an investor could screen stocks by entering the following criteria: "listed on the NYSE", "in the telecommunications industry", "has a P/E ratio between 15-25", and "has an annual EPS growth of at least 15% for the past three years". The screener would then produce a list of stocks that displayed all of these attributes. In this example stocks are screened by using only four criteria; however, you can screen stocks by as many criteria as the particular screener you are using will allow. The stock screener has replaced many days' worth of research with a few clicks of a mouse.
In Canada, a plan wherein some provinces will provide a tax credit for provincial income taxes to residents who spend their income on certain investments. Taobiz explains Stock Savings Plan The purpose is to encourage residents to invest in the provincial economy.
A system that helps brokerage firms keep track of the position and physical location of the securities they are holding. Taobiz explains Stock Record The stock record displays the names of the owners as well as the names of the securities. Since today's brokerage firms hold shares in street name for investors, accurate bookkeeping is necessary for keeping track of the actual owners of the securities.
A list of prices (generally bid, ask and last) for a stock at a particular point during the trading day. Stocks used to be quoted in fractions, but now most exchanges use decimals. Taobiz explains Stock Quote Stock quotes are either in real-time or 15-minute delay.
A power of attorney that allows the current owner of a registered security to transfer ownership to another party. Taobiz explains Stock Power The party to whom ownership is being transferred can be a bank, brokerage firm, or another investor. Stock power may also be granted if the stock is pledged as collateral for a loan.
A callable note that pays interest to the holder, and upon maturity is exchanged for shares in the underlying company. These investment products are issued and underwritten by Morgan Stanley and provide investors with both interest payments and exposure to the stock market. Taobiz explains Stock Participation Accreting Redemption Quarterly-Pay Securities - SPARQS The notes are issued at a set price and interest is paid quarterly. The issuer can call the notes after a specified period of time. When the notes are called, the holders are paid out a specified amount that includes all of the future interest payments; this is done usually when the price of the stock has risen rapidly. If, on the other hand, the notes reach maturity, the holders receive a specified amount of shares in the underlying company.