An abbreviation denoting a thousand cubic feet of natural gas. A natural gas well that produces 400 Mcf of gas per day operates with a daily production rate of 400,000. A single Mcf is equal to approximately 1,000,000 Btu (British thermal units) of energy. The "M" in MCF comes from the ancient Roman letter M, which stood for one thousand. One million cubic feet is instead denoted as MMcf. Taobiz explains Mcf Different energy sources yield different outputs for an equivalent amount of resource. Coal, for example produces 25 million Btu of energy per ton while oil produces 5.6 million Btu per barrel. One Btu is the amount of heat energy required to raise the temperature of one pound of water by one degree Fahrenheit.
A reference to Friday, Apr 2, 1993, when Philip Morris, the maker of Marlboro cigarettes, announced that it would be cutting the price of Marlboros to compete with generic cigarette makers. The company's stock tanked 26% following the announcement, losing about $10 billion off its market cap in a single day. The day is remembered as a landmark moment in the 1990s consumer movement away from name brand products in favor of cheaper generic products with prices 50% lower than their branded competitors. In its wake, money managers moved cash from name brand consumer goods makers like Coca-Cola and Tambrands (the former maker of Tampax tampons) to technology stocks and generic consumer goods producers. Taobiz explains Marlboro Friday Even though Philip Morris's announcement caused the company to initially lose $10 billion in market cap, the event marked the end of a price war. Competitors were priced out of the market, and only two years later, Philip Morris's stock had fully recovered from Marlboro Friday's loss. One analyst (James A. Taylor) was quoted in the New York Times as saying, "I believe the 1990s officially began with Marlboro's inability to sustain its price."
A type of market order that is canceled and re-submitted as a limit order if the price of the asset moves dramatically after the investor places the order. The limit on the limit order is placed at around the current market price as determined by a broker. This type of order adds a protective measure, helping the investor ensure his or her market order will not be completed at a price that is far off from the market price at the time of the order. Taobiz explains Market-With-Protection Order For example, say you place a market-with-protection order to sell 1,000 shares at the current market price of $45. If half of the order is filled at this price but the price of the shares start to fall rapidly to $35, the original market order is canceled and a limit order is placed for the remaining shares at $40. If the price climbs back to $40, the rest of the shares will be sold. If there was no protection on the order, the shares may have been sold at $35, which is far off from the market price of $45 that the investor originally wanted.
The total dollar market value of all of a company's outstanding shares. Market value of equity is calculated by multiplying the company's current stock price by its number of outstanding shares. A company's market value of equity is therefore always changing as these two input variables change. A company's market value of equity differs from its book value of equity because the former does not take into account the company's growth potential. Taobiz explains Market Value Of Equity Market value of equity is basically a synonym for market capitalization. It is used to measure a company's size and helps investors to diversity their investments across companies of different sizes and different levels of risk.
A slang term for a decline in the overall value of the stock market. Market swoons can be seen when indexes, such as the Dow Jones Industrial Average (DJIA) , have a significant drop in price. Taobiz explains Market Swoon Market swoons are often caused by the negative sentiment of investors. When investors grow nervous or fear an upcoming economic event, they will usually stop trading or liquidate a position. This will cause a swoon, lowering security prices across the market.
A broker-dealer in which at least one of the principal officers is a member of either the New York Stock Exchange (NYSE), another major stock exchange, a self-regulatory organization or a clearing house corporation. Also referred to as "clearing member". Taobiz explains Member Firm One seat (membership) on the NYSE usually costs more than $1 million. Owning a seat allows on the NYSE allows a person to trad on the floor of the exchange, either as an agent for someone else for for his or her personal account.
A dramatic and unexpected improvement in the investment performance of an asset class driven partly by a stampede of investors who don't want to miss out on its rise rather than by fundamental improvements in the economy. Gains created by a melt up are considered an unreliable indication of the direction the market is ultimately headed, and melt ups often precede melt downs. Taobiz explains Melt Up Financial analysts saw the run-up in the stock market in early 2010 as a possible melt up because unemployment rates continued to be high, both residential and commercial real estate values continued to suffer and retail investors continued to take money out of stocks.
Companies having a market capitalization greater than $200 billion. Taobiz explains Mega Cap These are the big kahunas of the financial world. Examples include Wal-Mart, Microsoft and General Electric. Keep in mind that classifications such as "large cap" or "small cap" are only approximations that change over time. Also, the exact definition of these terms can vary between brokerage houses.