A unique series of letters assigned to a security for trading purposes. NYSE and AMEX listed stocks have three characters or less. Nasdaq-listed securities have four or five characters. If a fifth letter appears, it identifies the security as other than a single issue of common stock. They are also known as "ticker symbols". Taobiz explains Stock Symbol The fifth letter of the ticker symbol of a Nasdaq listed stock can prove very helpful in finding out the history of a company. For example, if there is a "E" as the fifth letter, you know that the company has had previous trouble with their SEC filings.
A stock whose value is a reflection of expected future potential (or favorable press coverage) rather than its assets and income. Taobiz explains Story Stock An example of a story stock is a biotech company that expects test results for a cancer treatment. The stock would trade higher because of the expectation of good results.
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. Also known as a "stop order" or "stop-market order". Watch: Stop Loss Order Taobiz explains Stop-Loss Order Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making. It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.
An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better. Watch: How Do Limit Orders Work? Taobiz explains Stop-Limit Order The primary benefit of a stop-limit order is that the trader has precise control over when the order should be filled. The downside, as with all limit orders, is that the trade is not guaranteed to be executed if the stock/commodity does not reach the stop price. A stop order is an order that becomes executable once a set price has been reached and is then filled at the current market price. A limit order is one that is at a certain price or better. By combining the two orders, the investor has much greater precision in executing the trade. Because a stop order is filled at the market price after the stop price has been hit, it's possible that you could get a really bad fill in fast-moving markets. For example, let's assume that ABC Inc. is trading at $40 and an investor wants to buy the stock once it begins to show some serious upward momentum. The investor has put in a stop-limit order to buy with the stop price at $45 and the limit price at $46. If the price of ABC Inc. moves above $45 stop price, the order is activated and turns into a limit order. As long as the order can be filled under $46 (the limit price), then the trade will be filled. If the stock gaps above $46, the order will not be filled.
The owner of a stock that can't be sold. The term stuckholder has a negative connotation, usually because the value of the stock is dropping and circumstances prevent the owner from liquidating the position. Taobiz explains Stuckholder The Securities and Exchange Commission (SEC) can suspend trading on a stock to protect investors or the public. For example, if a company does not file the correct reports in a timely and accurate manner, the SEC can put a hold on trading for up to 10 days. once trading resumes, the stock tends to automatically fall in value due to the uncertainty associated with the violation. Stuckholders are stuck with this position when trading is suspended, even though they know that the value of the stock will drop.
Stock in a company that is over-leveraged as a result of recapitalization. Taobiz explains Stub Stub stock is very speculative and risky. Stub stock's advantage over junk bonds is that it has unlimited potential if the company turns things around.
Order placed well off a stock's market price. Stub quotes are used by trading firms when the firm doesn't want to trade at certain prices and wants to pull away to ensure no trades occur. In order to make this happen, the firm will offer quotes that are out of bounds. A stub quote also serves as a safety net in that if a market maker doesn't have enough liquidity available to trade a stock near its recent price range, then a stub quote is entered so that the market maker complies with its requirements without extending its quotes beyond its available liquidity. A stub quote is also referred to as a "placeholder" quote because this absurdly priced transaction would never be reached. Taobiz explains Stub Quote For example, a trading firm might set stub bids at 1 cent and stub offers at $2,000. Since the quotes are so dramatic, on a normal market trading day, these types of trades are generally not executed. Stub quotes are blamed as one of the causes of the 2010 May "Flash Crash" when the Dow Jones Industrial Average dropped nearly 1,000 points because the "out of bounds" prices that the stub quotes are known for were inadvertently executed when the market dropped dramatically that day.
The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold. The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid. Also known as the "exercise price". Taobiz explains Strike Price Strike prices are one of the key determinants of the premium, which represents the market value of an options contract. Other determinants include the time until expiration, the volatility of the underlying security and prevailing interest rates. Strike prices are established when a contract is first written. Most strike prices are in increments of $2.50 and $5.
登录
工商服务
危机公关
金融律师
app开发
财税服务
金融牌照
网站建设
知识产权
企业征信
审计评估