Designates a trade that occurs at a lower price than the immediately preceding trade. Also referred to as "downtick" or "zero minus tick". Brokerage firms require that short sell orders follow the "tick test", which means that if a stock is trading at a minus tick price (lower than the previous sale), a short sale at that time is not allowed. Generally, short sales are only allowed to occur on an uptick. This rule helps prevent traders from destabilizing a stock's price by short selling on minus ticks.
Financial con men that are accused of or have commited crimes similar to those of Bernard Madoff. Mini Madoffs tend to orchestrate ponzi or pyramid schemes that are similar in nature to Bernard Madoff's, but are smaller in size and notoriety. In a ponzi scheme, like Bernard Madoff's, investors are promised unusually high returns and early investors receive these returns from the money invested by new investors. The cycle of illegitimate returns can continue until the pool of investors fails to grow. With all schemes of this nature, eventually the infusion of new money dries up and the hoax unravels.
The process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source. Some estimate the size of the problem is over $500 billion annually. Often thought of as a victimless crime, money laundering is a very serious issue. Without it, international organized crime would not be able to function.
A money center bank is similar in structure to a common bank, but its borrowing and lending activities are with govenments, large corporations and regular banks. These types of financial institutions do not borrow from or lend to consumers. Money center banks are usually located in major economic centers such as London, Hong Kong, Tokyo and New York. With their large balance sheets, these banks are involved in national and international financial systems.
A fusion of "monetary policy" and "industrial policy," mondustrial policy describes the Fed's creation of new money during the 2008-2009 financial crisis in order to rescue certain firms, such as Bear Stearns and AIG, and certain markets, such as commercial paper and money-market mutual funds, at the expense of others, by purchasing securities and making loans. A term coined by John Taylor, a Stanford economics professor, former Bush administration treasury undersecretary and developer of the Taylor Rule to guide interest-rate policy. The term describes the Fed's management under Ben Bernanke's leadership of the 2008-2009 financial crisis, which Taylor views as excessively interventionist. Taylor was also concerned about the future effects of this policy.
A theory that states that returns on the stock market on Mondays will follow the prevailing trend from the previous Friday. Therefore, if the market was up on Friday, it should continue through the weekend and, come Monday, resume its rise. Some studies have shown a similar correlation, but no one theory has been able to accurately explain the existence of the Monday effect.
A slang term used to describe an investment purely as a momentum play, not worrying about the company's fundamentals. This is practiced more often by day traders.
A colloquial term for a small, independent, family-owned business. Unlike franchises and large corporations, which have multiple operations in various locations, mom and pop shops usually have a single location that often occupies a physically small space. The “shop” could be any type of business, such as an auto repair garage, bookstore or restaurant. "Mom and pop" can also refer to inexperienced investors who play the market casually and do not rely on trading to significantly supplement their income. Mom and pop shops sometimes have difficulty competing with larger businesses' buying power. This competitive disadvantage often results in high prices at mom and pop operations. Mom and pop shops are able to stay competitive by differentiating themselves from their large-scale competitors with a unique product, exceptional service and/or other personalized feel.