A long-term stock market indicator that evaluates the percentage of Harvard Business School graduates that accept "market sensitive" jobs in fields such as investment banking, securities sales & trading, private equity, venture capital and leveraged buyouts. If more than 30% of a year's graduating class take jobs in these areas, the Harvard MBA Indicator creates a sell signal for stocks. Conversely, if less than 10% of graduates take jobs in this sector, it represents a long-term buy signal for stocks. Taobiz explains Harvard MBA Indicator Started and maintained by consultant and HBS graduate Roy Soifer, the Harvard Indicator gave sell signals in 1987 and in 2000, which were both terrible years for the stock market. The esoteric indicator is meant to represent long-term signals based on the relative attractiveness of Wall Street jobs. The more grads that are enticed to go there, the more bloated Wall Street becomes and the more likely the market is nearing a top. When stock markets are doing poorly, fewer grads want to enter the sector. This indicator runs on a similar theme to the old market adage that when everyone else is looking to get in, it's time to get out.
A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks to capture some of Harry Potter's success by investing in selected movie producers, merchandisers and advertisers currently associated with the franchise. The success of the Harry Potter franchise has snowballed since the first of many Harry Potter books, "Harry Potter and the Sorcerer's Stone", by J. K. Rowling, was first published in 1997. With the addition of movies, toys, games and other accessories, Harry Potter has created an industry generating billions of dollars in sales. With each new book edition or movie release, StockPickr believes investors can benefit by investing in companies involved with Harry Potter branded items. Taobiz explains Harry Potter Stock Index The Harry Potter Stock Index includes such firms as Scholastic (SCHL), who publishes the Harry Potter books, and Time Warner (TWX), the series movie producer. Even Amazon (AMZN) is included, where Potter books are best sellers. Hasbro (HAS), Motorola (MOT), Electronic Arts (ERTS) and Coca Cola (KO) are a few other related companies included in the index. Is this a real stock index, like the S&P 500? Not really. It's more of a tongue-in-cheek version of a stock index. Note that stock portfolios and financial terms that are tied to celebrities tend to have a short shelf life, depending on how long the buzz lasts. For example, consider the term Bo Derek, which was most popular in the early 1980s, after the movie "10" first came out.
This is a term that refers to a company's stock symbol or ticker symbol. Every security listed anywhere on the globe has a unique symbol for the security. Knowing the symbol allows investors to check the price of the security. Taobiz explains Hard-Coded Stock In the U.S., on the New York Stock Exchange, stocks can have symbols with one, two or three letters in the symbol. Nasdaq-listed stocks have stock symbols with four or five letters.
A market order that must be promptly executed so that the request is immediately filled. In most cases, the trader will be required to hit the bid for purchase orders or, in case of a sell, to take the offer. Taobiz explains Held Order When filling a held order, traders have very little discretion when finding a price because time is scarce. Typically, they will be forced to match the highest bid or offer the lowest selling price to facilitate a quick transaction. Held orders are used by investors who want to quickly change their exposure to a certain stock.
A situation in which a security is restricted from trading when the stock exchange opens for the day. Stock exchanges can halt trading on securities at any time, but trading usually resumes in under an hour. If the halt occurs before the beginning of a trading day, the stock is considered held at the opening. This kind of halt in trading is done to protect investors. Taobiz explains Held At The Opening There are three main reasons why a stock is held at the opening: 1. The company plans to release new information that could have a drastic impact on the stock's price. Time is given for participants to fully understand the new information and place buy and sell orders accordingly. 2. There is an imbalance of buy and sell orders. 3. The stock does not meet the listing requirements set by the regulatory body. For example, a stock may be held at opening if there is a significant imbalance in buy and sell orders before the opening bell, the stock can be held at opening. This will give market specialists time to disseminate the information to investors and make a decision on a fair trading-price range.
A strategy in a tender offer where an investor short sells a portion of the shares he or she owns. This strategy is used to protect against the risk of loss in the event that the tender offer does not go through. Taobiz explains Hedged Tender For example, imagine a stock was trading at $30, and there was a tender offer for $40 per share. A hedged tender would attempt to lock in the $40 per share even if the offer does not go through.
Relates to a type of business that typically carries a high capital cost (capital-intensive), high barriers to entry and low transportability. The term "heavy" refers to the fact that the items produced by "heavy industry" used to be products such as iron, coal, oil, ships, etc. Today the reference also refers industries that cause disruption to the environment in the form of pollution, deforestation, etc. Taobiz explains Heavy Industry Industries that are typically considered heavy include: 1. Chemicals and plastics 2. Steel and oil refining, production 3. Mining 4. Industrial machinery 5. Mass transit (railways, airlines, shipbuilders) Another trait of heavy industry is that it most often sells its goods to other industrial customers, rather than to the end consumer. Heavy industries tend to be a part of the supply chain of other products. As a result, their stocks will often rally at the beginning of an economic upturn and are often the first to benefit from an increase in demand.
A category of stocks relating to medical and healthcare goods or services. The healthcare sector includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products. Taobiz explains Healthcare Sector Stocks in the healthcare sector are often considered to be defensive because the products and services are essential. Even during economic downturns, people will still require medical aid and medicine to overcome illness. Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.