A broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run a business or other organization. These include physical goods as well as information, services and any other resources needed. Supply management divisions within large corporations can be very large, with budgets in the billions and employing hundreds of workers. The main goals within supply management are to control costs, efficiently allocate resources and gather information to be used in strategic business decisions. Taobiz explains Supply Management While it is easy to understand how supply management directly affects the results of a large purchaser or a manufacturer, supply management is just as important to service-based firms. The internet, along with broad improvements to logistical networks worldwide, have helped turn supply management into a key strategic objective at most large companies, capable of saving millions and increasing efficiency company-wide. A company's ability to execute on supply management goals can directly benefit the stock price by increasing metrics such as gross and net margins, cash flow, and cost of goods sold (COGS).
An alternative securities exchange in Taiwan with listing criteria that are lower than those of the Taiwan Stock Exchange (TSE). For companies making an initial public offering, listing on the TWO can be a step toward getting listed on the TSE. Initial funding of the non-profit TWO was donated by the Taiwan Securities Association, the TSE Corp. and the Taiwan Depository & Clearing Corp. Taobiz explains Taiwan OTC Exchange (TWO) .TWO The Taiwan OTC Exchange, also known as Gre Tai Securities Market (GTSM), was established in November 1994. It deployed a weighted average stock index a year later. The GreTai Securities Market Index tracks the performance of all stocks that have been listed on the TWO for more than one month. The exchange trades stocks (including emerging stocks), bonds (including government bonds, convertible bonds and international bonds), and derivatives.
A fund that attempts to expose its investors to a specified amount of risk. The fund manager of a target risk fund is responsible for overseeing all the securities owned within the fund, to ensure that the level of risk isn’t greater or less than the fund's target amount of risk exposure. Taobiz explains Target Risk Fund Target risk funds typically label themselves as "conservative", "moderate risk" or "aggressive" in terms of their risk exposure. Regardless of the label applied, the intent is to offer a relatively constant level of risk exposure to investors. This allows investors who are considered highly risk averse to identify and select a fund of funds that has a conservative risk exposure target, and once invested in the fund, remain confident that their level of risk exposure will not change substantially. The manager of a target risk fund is responsible for ensuring that the fund's level of risk exposure is on target, and the fee’s charged for operating the fund (on top of the fees charged by mutual funds owned within the target risk fund) is compensation for the value-added service.
An old investing technique used by day traders to analyze the price and volume of a particular stock in order to execute profitable trades. Tape reading involves evaluating the size of stock orders, order speed, order price, and order condition (at ask, at bid, between ask and bid) to identify trends in trading behavior by insiders, professionals and the general public. These trends help a trader recognize good times to buy or sell. Taobiz explains Tape Reading The term gets its name from the old method of displaying trade, bid and ask information on paper printed by ticker tape machines (today, it is displayed electronically). Investors read the tape numbers to create an unemotional analysis and capitalize on the behavior of the market. This technique can be profitable whether the market is bullish or bearish.
A situation on the trading floor where trading volume is so heavy that the real-time ticker quotes are delayed by a minute or two. When the tape is late some price or volume digits will be deleted. Taobiz explains Tape Is Late The term comes from years ago when the "tape" was actually paper and the printer couldn't keep up with trading activity. In the modern stock market this isn't as much of an issue because data is generally delivered electronically.
A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. Tangible common equity (TCE) is calculated by subtracting intangible assets, goodwill and preferred equity from the company's book value. Measuring a company's TCE is particularly useful for evaluating companies that have large amounts of preferred stock, such as U.S. banks that received federal bailout money in the 2008 financial crisis. In exchange for bailout funds, those banks issued large numbers of shares of preferred stock to the federal government. A company can boost TCE by converting preferred shares to common shares. Taobiz explains Tangible Common Equity - TCE Using tangible common equity to calculate a capital adequacy ratio is one way of evaluating a bank's solvency and is considered a conservative measure of a company's value. Another way to evaluate a bank's solvency is to look at its tier 1 capital, which consists of common shares, preferred shares, retained earnings and deferred tax assets.
A corporate takeover where the target firm is offered a price per share that is less than its current market value. Taobiz explains Takeunder For example, a company offers to takeover another for $20 per share, but the target company's stock is trading at $25 per share.
A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares. Taobiz explains Takeover A welcome takeover is usually referring to a favorable and friendly takeover. Friendly takeovers generally go smoothly because both companies consider it a positive situation. In contrast, an unwelcome or hostile takeover can get downright nasty!