The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it. Taobiz explains Bid-Ask Spread For example, if the bid price is $20 and the ask price is $21 then the "bid-ask spread" is $1. The size of the spread from one asset to another will differ mainly because of the difference in liquidity of each asset. For example, currency is considered the most liquid asset in the world and the bid-ask spread in the currency market is one of the smallest (one-hundredth of a percent). On the other hand, less liquid assets such as a small-cap stock may have spreads that are equivalent to a percent or two of the asset's value.
An indication of whether the latest bid price is higher, lower, or the same as the previous bid. Taobiz explains Bid Tick The direction of the bid tick is important to institutional traders, who move large amounts of stock within a small period of time. Day traders also rely heavily on the direction of the bid tick when making their trade decisions.
The number of shares a buyer is willing to purchase at the quoted bid price. Taobiz explains Bid Size For example, if the bid price is $20 and the bid size is 2000, that means someone is willing to purchase 2000 shares @ $20 per share.
The highest quoted bid for a particular stock among all those offered by competing market makers. Taobiz explains Best Bid Simply put, this is the highest price someone is willing to pay for an asset.
The lowest quoted ask price for a particular stock among those offered from competing market makers. Taobiz explains Best Ask In layman's terms, this is the lowest price for which someone is willing to sell an asset.
One of two stock exchanges in Switzerland, located in the nation’s fifth-most populous city of Berne. The Berne Exchange is much smaller than the Swiss Exchange, which dominates share trading in Switzerland. The exchange was formally set up in 1884 and is managed by the Berne Stock Exchange Association. It is also known by its abbreviation BX. Taobiz explains Berne Exchange - BX The Berne Exchange aims to attract listings of Swiss small and medium-sized enterprises, which typically are unable to meet the more stringent listing criteria of the Swiss Exchange. It introduced a fully electronic trading platform in 2002.
A holding company for a multitude of businesses run by Chairman and CEO Warren Buffett. Berkshire Hathaway is headquartered in Omaha, Nebraska and began as just a group of textile milling plants, but when Buffett became the controlling shareholder in the mid 1960s he began a progressive strategy of diverting cash flows from the core business into other investments. Insurance subsidiaries tend to represent the largest pieces of Berkshire Hathaway, but the company manages hundreds of diverse businesses all over the world. Taobiz explains Berkshire Hathaway Because of Berkshire Hathaway's long history of operating success and keen stock market investments, the company has grown to be one of the largest in the world in terms of market capitalization. Berkshire stock trades on the New York Stock Exchange in two classes, A shares and B shares. The A shares are noted for their very high prices - in excess of $100,000 per share in 2007. Early in his career Buffett came across the novel idea to use the "float" from his insurance subsidiaries to invest elsewhere, mainly into focused stock picks that would be held for the long term. Buffett has long eschewed a diversified stock portfolio in favor of a handful of trusted investments that would be overweighted in order to leverage the anticipated return. Over time, his investing prowess became so noted that Berkshire's annual shareholder meetings became a mecca for value investing proponents and the focus of intense media scrutiny.
The strategy of manipulating a company's income statement to make poor results look even worse. The big bath is often implemented in a bad year to enhance artificially next year's earnings. The big rise in earnings might result in a larger bonus for executives. New CEOs sometimes use the big bath so they can blame the company's poor performance on the previous CEO and take credit for the next year's improvements. Taobiz explains Big Bath For example, if a CEO concludes that the minimum earnings targets can't be made in a given year, he/she will have an incentive to move earnings from the present to the future since the CEO's compensation doesn't change regardless if he/she misses the targets by a little or a lot. By shifting profits forward - by prepaying expenses, taking write-offs and/or delaying the realization of revenues - the CEO increases the chances of getting a large bonus the following year.