Buying a security with the intention of holding it for the long term, but subsequently panicking and selling it the following day. An investor sells out the following day typically because of bad news or a sudden change in long-term expectations.
An eighteenth century nickname for the Bank of England. The full name is the Old Lady of Threadneedle Street, which refers to the bank's location. The Bank of England is located in the middle of the city of London on Threadneedle Street. James Gillray first used the nickname in a caricature cartoon in 1797. The cartoon was entitled "The Old Lady of Threadneedle Street in Danger", which some say pokes fun of the Bank of England for stopping cash payments. The Old Lady is seen dressed in one-pound bank notes, which the Bank of England used to compensate for the lack of cash reserves.
The price at which publicly issued securities are made available for purchase by the investment bank underwriting the issue. A security's offering price includes the underwriter's fee and any management fees applicable to the issue. Underwriters analyze numerous factors when attempting to determine a security's offering price. Ideally, an investment bank should accurately assess the value of the securities and the underlying firm, raising funds for the issuing company and selling the securities to investors for a fair offering price.
The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological expectation rather than an actual phenomenon. Most statistics go against the theory. Some investors may be nervous during October because the dates of some large historical market crashes occurred during this month. Black Monday, Tuesday and Thursday all occurred in October 1929, after which came the Great Depression. In addition, the great crash of 1987 occurred on October 19, and saw the Dow plummet 22.6% in a single day.
A trading floor participant responsible for maintaining a list of public market or limit orders of a specific option class using the "market-marker" system of executing orders. The term can also sometimes be used in reference to a current list of public market or limit orders for a given exchange. For example, a list of specific public orders awaiting execution on the Chicago Board Options Exchange could be referred to as the "order book official".
The Oprah effect is an expression referring to the effect that an appearance on The Oprah Winfrey Show, or an endorsement by Oprah Winfrey, can have on a business. Because the show reaches millions of viewers each week, a recommendation from Oprah can have a significant and often unexpected influence for a new or struggling business. People and companies lucky enough to appeal to Oprah can find overnight success after being promoted on her show. An endorsement from Oprah can suddenly turn a small, unprofitable business into a multimillion-dollar company.
A company's action of searching for an auditor who will give a positive opinion of the company's accounting practices (even though they might not deserve it). As you can imagine, this is highly illegal.
The price at which a security first trades upon the opening of an exchange on a given trading day. Quite commonly, a security's opening price will not be identical to its closing price. This is due to after-hours trading and to changes in investor valuations or expectations of the security occurring outside of trading hours. The opening price of a security serves as a benchmark for the day: if the security finishes trading at a higher price it is said to have closed up, and if it finishes trading below the opening price it is said to have closed down.