An employee who has inside knowledge of illegal activities occurring within his or her organization and reports these to the public. Taobiz explains Whistle Blower Although whistle blowers are protected under federal law from employer retaliation, there have been cases where punishment for whistle blowing has occurred.
1. Traditionally, the unofficial and unpublished earnings per share (EPS) forecasts that circulate among professionals on Wall Street. In this context, whisper numbers were generally reserved for the favored (wealthy) clients of a brokerage. 2. A company's forecasted future earnings or revenues according to the collective expectations of individual investors. In this sense, a whisper number would be compiled by a website polling its visitors. Individuals come up with a whisper number using their own analyses of company financials, market trends, gut feel, etc. Taobiz explains Whisper Number Whisper numbers are especially useful when they differ from the consensus forecast. They can be used as a tool to help spot (or avoid) an earnings surprise (or disappointment). Of course, this is only relevant if they are more accurate than the consensus estimate, and this depends on the sources used to calculate them. Increased regulatory scrutiny on the brokerage industry made it much more difficult (if not impossible) to get a whisper number in the traditional sense. For example, regulations like Sarbanes-Oxley provided for stricter rules in how companies disclose financial data. Employees, financial professionals and brokerages face significant penalties if they provide insider earnings data to a select group of people. While it's impossible to know the extent to which whisper numbers still circulate among the wealthy, it's highly unlikely that a small investor could access this data. For these reasons, the newer definition (expectations of individuals) is of more relevance to regular individual investors.
A stock market index weighted by the market capitalization of each stock in the index. In such a weighting scheme, larger companies account for a greater portion of the index. Most indexes are constructed in this manner, with the best example being the S&P 500. Taobiz explains Weighted Average Market Capitalization For example, if a company's market capitalization is $1 million and the market capitalization of all stocks in the index is $100 million, then the company would be worth 1% of the index. The alternative to weighting by market cap is a price-weighted index such as the Dow Jones Industrial Average.
A chart where each data point is comprised of the price movement for a single week of trading. This type of chart typically shows high, low, open, and close for the whole week and does not show the day-to-day movements of the security. This type of chart is used by technical analysts to gauge the long-term trend of a given asset. Taobiz explains Weekly Chart A weekly chart can vary in appearance depending on what form of chart the analyst chooses to use. For example, a weekly line chart will only include the weekly closing price while a weekly candlestick chart will display the open, high, low and close for the week. This chart construction is used to give a long-term view of the security as it includes much more historical price movement than an equivalent period day chart.
Stock that is issued with a value much greater than the value of the issuing company's assets. Watered stock can be caused by excessive stock dividends, overvalued assets and/or large operating losses. Taobiz explains Watered Stock Assets can be overvalued for several reasons, including inflated accounting values or excessive issue of stock (through a dividend or employee stock-option program). This term is thought to originate from ranchers who would feed their cattle large amounts of water before market day to make them heavier, fetching a price higher than their worth.
An exchange-traded fund that invests in companies operating in industries such as water treatment and purification, water utilities, water monitoring, and broader distribution and retail companies. Water ETFs invest the majority of their assets into publicly traded equities based on an underlying index, which may be created in house or by a third-party market service. Watch: Understanding ETF Taobiz explains Water ETF There are water ETFs available that focus primarily on U.S.-based companies, while others have a more international focus. Underlying fund indexes are varied, but all include common stocks and American depositary receipts (ADRs) of foreign-based companies. The funds tend to be managed passively around their underlying indexes. As the world's population grows, its finite water supply may become the most precious natural resource. This has led to heightened investor demand for companies engaged in creating potable water for consumers, irrigation supplies for farming, and other water-based goods and services.
A strategy that a takeover target uses to try and thwart an undesired takeover attempt. The target firm issues a large amount of shares at below-market prices, which the acquiring company will then have to purchase if it wishes to complete the takeover. Taobiz explains Whitemail If the whitemail strategy is successful in discouraging the takeover, then the company can either buy back the issued shares or leave them outstanding.
A ratio used to measure a company's ability to recover operating costs from annual revenue. This ratio is calculated by taking the company's total annual expenses (excluding depreciation and debt-related expenses) and dividing it by the annual gross income: Taobiz explains Working Ratio A working ratio below 1 implies that the company is able to recover operating costs, whereas a ratio above 1 reflects the company's inability to do so.