The action of selling stock to cash in on a sharp rise. This action pushes prices down temporarily. When traders are profit taking, the implication is that there is an upward trend in the security. For example, in the media you might hear something like this: "Markets were down today as traders took some profits off the table." It's common for prices to retract to some extent even in bull markets.
To take a new service, product or product feature - that a company has provided to a single customer or a few customers on a custom basis - and turn it into a standard, fully tested, packaged, supported and marketed product. For example, a person can productize their expertise by putting it into a tangible object by creating a product based on that knowledge. An idea, a process, a prototype or an area of expertise can be productized into marketable and salable products. For example, a marketer can write a "how-to" book for new entrepreneurs that would teach them how to market their business, or a web designer can create a DVD series on how to design web sites.
In manufacturing, the number of goods that can be produced during a given period of time. Alternatively, the amount of time it takes to produce one unit of a good. In construction, the rate at which workers are expected to complete a certain segment, such as a road or building. The production rate will depend on the speed at which workers are expected to operate, generally categorized as slow, average or fast. For manufacturing and construction, a higher production rate can lead to a decrease in quality. As machines or employees work to have more product pushed through the production line or more of a building completed, more mistakes are likely to happen. There is thus a point at which a decrease in quality could wind up costing a company more, even if less time is needed to push out a unit.
One of the four categories (quadrants) in the BCG growth-share matrix that represents the division within a company that has a small market share within a rapidly expanding industry. A problem child or question mark requires investment capital in order to expand and grow. However, uncertainty exists in this department's profitability because success is not guaranteed.
A paradox in decision analysis in which two individuals acting in their own best interest pursue a course of action that does not result in the ideal outcome. The typical prisoner’s dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result of following a purely logical thought process to help oneself, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process. Suppose two friends, Dave and Henry, are suspected of committing a crime and are being interrogated in separate rooms. Both individuals want to minimize their jail sentence. Both of them face the same scenario: Dave has the option of pleading guilty or not guilty. If he pleads not guilty, Henry can plead not guilty and get a two-year sentence, or he can plead guilty and get a one-year sentence. It is in Henry’s best interest to plead guilty if Dave pleads not guilty. If Dave pleads guilty, Henry can plead not guilty and receive a five-year sentence. Otherwise he can plead guilty and get a three-year sentence. It is in Henry’s best interest to plead guilty if Dave pleads guilty. Dave faces the same decision matrix and follows the same logic as Henry. As a result, both parties plead guilty and spend three years in jail although through cooperation they could have served only two. A true prisoner’s dilemma is typically "played" only once; otherwise it is classified as an iterated prisoner’s dilemma.
The accessibility of information on the order flow for a particular stock, allowing knowledge of the quantities of stock being offered and the bids at the various price levels. The Nasdaq II quote system provides information on all the bids and asks at various price levels for a particular stock. On the other hand, NYSE quotes display only the highest bid and lowest ask prices. only the specialist has knowledge of the complete order flow for a stock.
Slang for selling off a losing position even if the loss is substantial. The point at which an investor decides to sell regardless of price has been dubbed "the puke point." This follows the theory that successful trading means always cutting your losses and letting your winners ride.
The sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment. Public offerings of corporate securities in the U.S. must be registered with and approved by the SEC and are normally conducted by an investment underwriter. Generally, any sale of securities to more than 35 people is deemed to be a public offering, and thus requires the filing of registration statements with the appropriate regulatory authorities. The offering price is predetermined and established by the issuing company and the investment bankers handling the transaction. The term public offering is equally applicable to a company's initial public offering, as well as subsequent offerings.