A method of independent stock analysis whereby company information is supplied by third parties. Taobiz explains Channel Check Many times, when stock analysts provide ratings upon specific companies the information used is supplied by the company being analyzed. When doing a channel check, the analyst is using information not supplied by the company and is independently investigating the financial health of the company.
1. For an option or futures contract, the difference between the current price and the previous day's settlement price. 2. For an index or average, the difference between the current value and the previous day's market close. 3. For a stock or bond quote, the difference between the current price and the last trade of the previous day. Taobiz explains Change Change is good, even downward plunges are needed once in awhile. A market without change is basically a bank account, and interest rates rarely stay ahead of inflation rates.
A slang term used to describe a stock that has appreciated dramatically. A champagne stock is one that has made shareholders a great deal of money. Although champagne stocks can come from any industry and sector, bubble stocks have made and lost shareholders quite a bit of money before those bubbles burst. Taobiz explains Champagne Stock A champagne stock is typically one that has at least doubled or tripled in value in a relatively short period, creating a huge profit for the company's shareholders. The term is used because individuals who hold such stocks will often order an expensive bottle of champagne to celebrate their good fortune.
A stock of commodity that has been inspected by qualified representatives and determined to be of basis grade. Taobiz explains Certificated Stock Stock of commodities that are certificated are also referred to as "certified stocks." They can be used as delivery against futures contracts and are normally kept at a holding facility until transfer. For grain, a certificated stock is known as "stocks in deliverable position" or deliverable stock.
1. An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account. This practice violates the NASD Fair Practice Rules. It is also referred to as "churn and burn", "twisting" and "overtrading". 2. A period of heavy trading with few sustained price trends and little movement in stock market indexes. Taobiz explains Churning Another negative result for the client is being stuck with higher tax bills.
A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction. Taobiz explains Choppy Market The term is derived from the phrase choppy seas, where a boat will move a lot but not over any large distance as waves prevent it from moving any meaningful distance. The DJIA, for example, may start a six-month period at 10,500 and over the six months move all over the 10,000 to 11,000 range but end the period at around 10,500.
Exchange-traded funds that invest in and track the equity stakes of China-based companies, either through investment on Chinese stock exchanges or via foreign-listed shares such as American depositary receipts (ADRs). Because of regulations against certain types of foreign investment and the existence of many large state-run companies operating in China, ETFs that represent the nation are limited in their investment choices to companies that have public shares to offer. As with all ETFs, intraday trading is offered for China ETFs, which makes for increased liquidity and flexibility over China-based mutual funds. Watch: Understanding ETF Taobiz explains China ETF By holding an ETF, investors can increase exposure to China and still achieve the diversification of an index. Many investors are drawn to China because of its world-leading population and strong economic growth, but because many of the nation's companies are still state-run or private, China ETFs are skewed in their sector allocation toward sectors that have seen public offerings of stock. These sectors include telecommunications, financials and energy. As the Chinese markets open up, ETFs that model the region will become more diversified by sector.
The stock of a company whose assets or earnings have significant activities in China. China concepts stocks will trade on different stock exchanges such as the Hong Kong exchange, under the name of H-Shares or "red chip" stocks. The People's Republic of China is undergoing major financial transformation, so many leading mainland-based companies chose to list themselves elsewhere to gain access to investor capital as quickly as possible. The China concepts stocks are considered one of the purest investment plays on China's long-term economic growth outside of direct mainland investment. Taobiz explains China Concepts Stock Beginning in 1980, the PRC (Peoples Republic of China) started opening up to joint ventures with foreign companies. China is developing capital markets of its own to attract foreign funds; they have even taken part in the some of the biggest initial public offerings in history as they transition large state-run businesses into publicly-traded companies.