A legal entity that develops, registers and sells securities for the purpose of financing its operations. Issuers may be domestic or foreign governments, corporations or investment trusts. Issuers are legally responsible for the obligations of the issue and for reporting financial conditions, material developments and any other operational activities as required by the regulations of their jurisdictions. The most common types of securities issued are common and preferred stocks, bonds, notes, debentures, bills and derivatives. Taobiz explains Issuer Say ABC Corp. sells common shares to the general public on the market in order to generate capital to finance its business operations. This means ABC Corp. is an issuer, and it's therefore required to file with regulators, such as the Securities and Exchange Commission, disclosing relevant financial information about the company. ABC must also meet any legal obligations or regulations in the jurisdiction where it issued the security. Writers of options are occasionally referred to as issuers of options because they also sell securities on a market.
The number of authorized shares that is sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors or the general public. Also known as "issued stock". Taobiz explains Issued Shares Issued shares include the stock that a company sells publicly in order to generate capital and the stock given to insiders as part of their compensation packages. Unlike shares that are held as treasury stock, shares that have been retired are not included in this figure. The amount of issued shares can be all or part of the total amount of authorized shares of a corporation. The total number of issued shares outstanding in a company is most often shown in the annual report.
An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public. By investing in an IPO ETF, investors hope to gain exposure to IPOs during their initial introduction to the market, while diversifying their investment across a pool of IPOs from varying sectors and industries. Watch: Initial Public Offering (IPO) Taobiz explains IPO ETF The main appeal behind IPO ETFs is that investors want to be in "on the ground floor" of an up-and-coming company, and take advantage of the potential upside growth in the share price. IPOs, however, are not guaranteed to be successful holdings and may even decrease in value in the weeks and months following the initial offering. In addition, expenses and fees associated with ETFs can eat away at earnings accrued by these specialty ETFs.
A slang term for a market maker on the London stock exchange. Taobiz explains Jobber Jobbers hold shares on their books and trade with the brokers.
Former hedge fund manager, columnist and author as well as host of CNBC's "Mad Money" and CBS radio's "Real Money". Cramer's claim to fame is his bombastic and 'in your face' behavior in which he gives recommendations and analysis on featured and viewer-suggested stocks. Jim Cramer is also one of the founders of TheStreet.com, a popular financial website. Taobiz explains Jim Cramer Although Cramer does give his opinion on the investment value of any given stock, he prefers that his viewers go out and conduct their own research on the underlying businesses before buying stocks. However, many of Cramer's viewers do go and purchase stocks just because he recommended them. This effect is so prominent that the price of a stock can actually go up significantly for a couple of days after his recommendation, due to the increased buying pressure. Critics often point out that Cramer can be very fickle in his investment outlook, because he appears to frequently flip-flop from a bullish position to a bearish position to reflect the market's current sentiment.
A type of exchange-traded fund that invests the majority of its assets in Japanese equities that trade on local stock exchanges. The performance of Japan ETFs does not correlate to the performance of the underlying index when measured in U.S. dollars, because the change in the exchange rate between the yen and the dollar must be taken into consideration. The performance of Japan ETFs is thus dependent on two things: the performance of the underlying equities and the effect of changing yen into dollars. Watch: Understanding ETF Taobiz explains Japan ETFs Japan ETFs are managed passively around a broad underlying index, such as the MSCI Japan Index, which represents over 75% of the total market capitalization of all listed Japanese equities. The Tokyo Stock Exchange is one of the largest and most progressive markets in Asia, making the country a frequent source of investor focus and attention. Japan ETFs allow for a single diversified investment in the country while also making a bet on the strength of the yen versus the dollar. Because of the depth of Japan's equity markets, ETFs that focus on large- or small-cap stocks are available. As with several of the larger, more liquid ETFs, some Japan ETFs can be sold short and are even accessible through listed options.
A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators (KSI)". Taobiz explains Key Performance Indicators - KPI A company must establish its strategic and operational goals and then choose the KPIs which best reflect those goals. For example, if a software company's goal is to have the fastest growth in its industry, its main performance indicator may be the measure of revenue growth year-on-year. A company's KPIs will be stated in its annual report. Also, KPIs will often be industry-wide standards, like "same store sales", in the retail sector.
A security that ranks lower than other securities in regards to the owner's claims on assets and income in the event of the issuer becoming insolvent. Taobiz explains Junior Security When bankruptcy occurs, holders of both preferred shares and debt securities have first claim on the remaining assets. only after preferred shareholders have been paid back, remaining assets (if any) are divided among common shareholders.