The day of deregulation for the securities market in London, England on October 27, 1986, in which the London Stock Exchange (LSE) became a private limited company. The event revitalized the LSE because outside corporations were allowed to enter its member firms and automated price quotation was established. Taobiz explains Big Bang Before Big Bang, the LSE was trailing the other major exchanges in the world. At the time, the New York Stock Exchange (NYSE) was listed as the No.1 market worldwide, determined by turnover rate. London was only able to turn over one-thirteenth of the volume transacted by the NYSE. The electronic trading system helped improve London's turnover because orders were now accepted by telephone and computer.
An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order". Taobiz explains Block Trade In general, 10,000 shares of stock (not including penny stocks) or $200,000 worth of bonds would be considered a block trade.
A signficant order placed for sale or purchase of a large number of securities. Block orders are often used by institutional investors. Also known as a "Block Trade". Taobiz explains Block Order Typically, a 10,000 share order (excluding penny stocks) or $200,000 worth of fixed-income securities would consititue a block order. When a trader wants to unload his or her securities quickly they will often sell them at a discount, aptly named a "blockage discount".
When brokerage firms ensure anonymity to both the buyer and the seller in a transaction. In the ordinary course of securities trading, most brokerage transactions are "blind". Exceptions occur for broker/dealers or others acting as both broker and principal on a given trade Taobiz explains Blind Brokering Disclosure to either the buying or selling party of the identity of the other is not the norm in public securities trading, except in some cases of privately arranged transactions. The only exception to this is when the broker is a principal and selling securities from its own inventory to a customer of the firm. In this case, disclosure is required due to a possible conflict of interest.
A theory that postulates that investors prefer dividends from a stock to potential capital gains because of the inherent uncertainty of the latter. based on the adage that a bird in the hand is worth two in the bush, the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains. Taobiz explains Bird In Hand The theory was developed by Myron Gordon and John Lintner as a counterpoint to the Modigliani-Miller dividend irrelevance theory, which maintains that investors are indifferent to whether their returns from holding a stock arise from dividends or capital gains. Under the bird-in-hand theory, stocks with high dividend payouts are sought by investors and consequently command a higher market price.
One of Spain's four major securities exchanges. Founded July 1890 and opened for trading in 1891, the Bilbao Stock Exchange (in Spanish, the "Bolsa de Bilbao") supports the financial, industrial and economic development of the Basque Country. It has provided financing for many major investment projects in the region, including shipyards, shipping companies, mines and banks. Taobiz explains Bilbao Stock Exchange (BIL) .BI The Basque Stock Exchange trades public debt, bonds, ETFs, derivatives, options, and more. It is a member of Bolsas y Mercados Españoles, an organization designed to streamline Spain's four major securities exchanges (Madrid, Valencia, Barcelona and Bilbao). It is also a full member of the International Federation of Stock Exchanges, Federation of European Securities Exchanges, and several other related international organizations.
Old industrial companies in gritty industries (such as mining, steel and oil) and as a result, they tend to be unpopular stocks with investors. Taobiz explains Big Uglies While big uglies are not as sexy as tech stocks, they do provide solid long-term earnings, growth and dividends. They are often overlooked by investors seeking fast profits, but not by value investors looking for bargain-priced stocks with a low price-to-earnings ratio. On the other hand, when markets tumble, the bulletproof earnings of the big uglies attract investors of all types.
A term in technical analysis that refers to a sharp price increase that comes after a long period of price appreciation, and is followed by a fall in the price. A blowoff is seen as a rally's last breath and is a highly bearish sign. Taobiz explains Blowoff This large and dramatic price movement is generally seen at the peak of a market or stock. The idea behind the bearishness of a blowoff is that it signals the activity of the most irrational and overly exuberant market participants, who, wanting to take part in the rally, momentarily push up the already-overvalued stock.