1. An unexecuted order that is still valid. 2. The start of trading on a securities exchange. Taobiz explains Open 1. Orders that are entered by investors but not yet transacted are deemed to be open until they expire or are filled. 2. Different exchanges will have different opening times. For instance, the New York Stock Exchange (NYSE) and the Nasdaq open at 9.30am EST, whereas the American Stock Exchange (AMEX) opens at 9am EST for options on debt securities.
1) A market which only can quote a firm price on either the bid or the ask side. This can be caused by temporary market inefficiencies or by regulatory controls, as can be found in some foreign countries. A one-way market also can be created when there are only buyers, or only sellers, interested in a particular asset or security at a specific point in time. 2) A slang term to describe a market that is moving strongly in one direction with little resistance. Taobiz explains One-Way Market 1) Certain countries have created one-way markets for themselves in respect to foreign investment - in Korea, for instance, investors typically can purchase only initial public offerings of companies, and no investing is allowed on the secondary markets once that window has passed. 2) A good example of a one-way market would be the ending stage of the technology-driven bull market of the late 1990s. In January of 2000, nearly every stock was rising every day, regardless of the fundamentals at the time.
One of the provisions of Regulation NMS that ensures that investors receive an execution price that is equivalent to what is being quoted on any other exchanges where the security is being traded. The order protection rule requires that each exchange establish and enforce policies to ensure consistent price quotation for all NMS stocks, which include those on the major stock exchanges as well as many over-the-counter (OTC) stocks. The order protection rule is also known as "Rule 611", or the "trade-through rule". Taobiz explains Order Protection Rule The order protection rule - and Regulation NMS as a whole - was instituted to make today's financial markets more liquid and transparent. Before the regulation was passed, existing "trade-through" rules did not protect investors at all times, especially on limit trades, where investors would sometimes get inferior prices to those being quoted on a different exchange. The rule aims to protect quotations for a given security across the board, so that all market participants can receive the best possible execution price for orders that can be executed immediately. Regulation NMS was passed in 2005 by the Securities and Exchange Commission (SEC).
A situation resulting from an excess of buy or sell orders for a specific security on a trading exchange, making it impossible to match the buyers' and sellers' orders. For securities that are overseen by a market maker or specialist, shares may be brought in from a specified reserve to add liquidity, temporarily clearing out excess orders from the inventory so that the trading in the security can resume at an orderly level. Extreme cases of order imbalance may cause suspension of trading until the imbalance is resolved. Taobiz explains Order Imbalance Order imbalances can often occur when major news hits a stock, such as an earnings release, change in guidance, or merger and acquisition activity. Imbalances can move securities to the upside or downside, but most imbalances get worked out within a few minutes or hours in one daily session. Smaller, less liquid securities can have imbalances that last longer than a single trading session because there are fewer shares in the hands of fewer people. Investors can protect themselves against the volatile price changes that can arise from order imbalances by using limit orders when placing trades, rather than market orders.
A nickname for Warren Buffett, who is arguably one of the greatest investors of all time. He is called the "Oracle of Omaha" because his investment picks and comments on the market are very closely followed by the investment community, and he lives and works in Omaha, Nebraska. Taobiz explains Oracle Of Omaha Warren Buffett is one of the richest men in the world. He built his fortune using a simple yet powerful investment strategy. His investments are long-term positions, accomplished by the purchase of strong companies that are trading well below their intrinsic value. Some of his most well-known investments include Coca-Cola and Gillette.
A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments such as derivatives, which are traded through a dealer network. Taobiz explains Over-The-Counter - OTC In general, the reason for which a stock is traded over-the-counter is usually because the company is small, making it unable to meet exchange listing requirements. Also known as "unlisted stock", these securities are traded by broker-dealers who negotiate directly with one another over computer networks and by phone. Although Nasdaq operates as a dealer network, Nasdaq stocks are generally not classified as OTC because the Nasdaq is considered a stock exchange. As such, OTC stocks are generally unlisted stocks which trade on the Over the Counter Bulletin Board (OTCBB) or on the pink sheets. Be very wary of some OTC stocks, however; the OTCBB stocks are either penny stocks or are offered by companies with bad credit records. Instruments such as bonds do not trade on a formal exchange and are, therefore, also considered OTC securities. Most debt instruments are traded by investment banks making markets for specific issues. If an investor wants to buy or sell a bond, he or she must call the bank that makes the market in that bond and asks for quotes.
Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the company are not considered outstanding stock. Also referred to as "issued and outstanding" if all repurchased shares have been retired. Taobiz explains Outstanding Shares This number is shown on a company's balance sheet under the heading "Capital Stock" and is more important than the authorized shares or float. It is used to calculate many metrics, including market capitalization and earnings per share (EPS).
The major securities trading market in Norway, the Oslo Stock Exchange (in Norwegian, the "Oslo Børs") opened for trading in 1881. Initially, the Exchange did not see much activity, and its only function was to fix prices once a month - it did not trade any stocks. Today, equities, primary capital certificates, derivatives, fixed income instruments, mutual funds and exchange traded funds can be traded through the Oslo Stock Exchange. Its main index is the OBX Index. Taobiz explains Oslo Stock Exchange (OSL) .OL The Oslo Børs switched to a fully electronic trading system in 1999. In 2002, it joined the NOREX alliance, a group that also includes the stock exchanges of Stockholm, Copenhagen and Iceland, as part of an effort for the Nordic exchanges to attract greater international investment through a common trading platform and streamlined regulations.