When securities are held in the name of a broker or other nominee, as opposed to holding them in the customer's name. Taobiz explains Street Name Shares are held in street name because it makes transferring the securities easier. This is because they are held in the broker's custody, rather than having to register in the customer's name and physically transfer certificates.
The average earnings estimates made by brokers and securities analysts. Also known as the "market consensus" or "earnings expectations". Taobiz explains Street Expectation Companies that fail to meet the street expectations often see their stock prices drop drastically.
A type of buyer in an acquisition that has a specific reason for wanting to purchase the company. Strategic buyers look for companies that will create a synergy with their existing businesses. Because strategic buyers may actually get more value out of an acquisition than the intrinsic value of the company being acquired, strategic buyers will usually be willing to pay a premium price in order to have the deal go through. Also known as synergistic buyers. Taobiz explains Strategic Buyer Strategic buyers can come in many forms. A strategic buyer could be a competitor or a company in the same industry that wants to move into a new region. Purchasing an existing company in a new region may be more cost effective than starting new operations themselves. Another possibility could be a company in an unrelated business, seeing that the company being acquired has strengths that could help their existing business. An example of this is a food manufacturer acquiring a supply-chain management/logistics firm.
A series of market indexes that are representative of the European and global markets. These indexes cover a wide range of market segments including the broad market, blue chips, individual sectors and global indexes. While there are global STOXX indexes, the majority of the focus is placed on the European market. Taobiz explains STOXX The STOXX indexes were created out of a venture between Dow Jones, Deutsche Boerse AG, and the SWX group. These indexes are tradable on the futures and options market and are also used as benchmarks for funds that trade in the European and global markets. The Dow Jones Industrial Average in the U.S. is similar to the Dow Jones STOXX 50 Index.
A practice where brokers, dealers or high-frequency traders jump to the front of the line in the National Best Bid and Offer (NBBO), which is the highest posted bid and the lower posted offer for a trading instrument, by making a price improvement in 1/100th of a penny increments. This allows the transaction to be executed first and provides the best opportunity to capture the spread. Taobiz explains Sub-Pennying Sub-pennying practices take fills away from investors who place orders on the National Best Bid and Offer. The Securities and Exchange Commission (SEC) in 2005 implemented Rule 612 or the Sub-Penny Rule. With an increase in algorithmic trading, programs had been created to automatically sub-penny the NBBO. The SEC noticed and adopted Rule 612 to address the problem. It specifies that the minimum pricing increment for stocks over $1.00 must be $0.01; stocks under $1.00 have a minimum pricing increment of $0.0001. The rule, however, only banned sub-penny quoting - and not sub-penny trading - and as such the problem of sub-pennying still exists.
Germany's second-largest securities market (after the Frankfurt Stock Exchange), the Stuttgart Stock Exchange (in German, Böerse Stuttgart) handles around 40% of all securities trades in the country. Established in 1860, the Exchange trades in equities, bonds, investment funds and participation certificates. Taobiz explains Stuttgart Stock Exchange (STU) .SG The Exchange closed from 1914-1919 due to World War I, and briefly during the Great Depression and World War II. In 2004, it became the first German stock exchange to limit commissions. By 2008, all asset classes were traded electronically. That same year, it traded around 400,000 securities and executed more than 1.5 million orders per month.
An investment instrument with which an investor holds a long position in a stock, and leverages his or her position by purchasing additional shares of the same equity with the present value of expected future dividends. Taobiz explains Super Upside Note - SUN As with any leveraged position, both the upside and downside risk of the investor increase. This type of investment tool should therefore be approached with caution.
Slang for a new, emerging growth industry that is expected to be a strong sector in the future. Taobiz explains Sunrise Industry The sectors that sunrise industries replace are sometimes referred to as sunset industries. An example would be the DVD industry back in the 1990s; it was expected to be strong and eventually overtake the VCR, which it eventually did.