A market with many bid and ask offers. The market is characterized by high liquidity, low spreads, and low volatility. Changes in supply or demand have a smaller impact on price. A liquid market is the opposite of a thin market.
A game often associated with Wall Street traders who use statistical reasoning and behavioral psychology tactics to gamble. Liar's Poker is fairly similar to the card game "cheat." Players hold random dollar bills with close attention to their own bill serial number. The objective of the game is to bluff the opponents into believing that your bid does not exceed the combined sum of all of the serial numbers.Liar's Poker is also book by Michael Lewis that depicts the Wall Street bond trading culture at Salomon Brother's. In Liar's Poker, if one player bids three 4s, he predicts that within all of the dollar serial numbers held by all players, there are at least three 4s. If the player's bluff is not called, the next player must either bid a higher frequency of any other digit (five 2s) or can bid a higher number at the same frequency level (three 6s).
The system of pricing that is used by the Tokyo Stock Exchange. Under the Kakaku Yusen system, a lower-priced trade is given priority over a higher-priced trade for a sell order. Conversely, higher-priced trades take precedence over lower-priced trades for buy orders. The Kakaku Yusen system serves as a tiebreaker for trades that are received or placed at the same time. This system is complementary to the exchange's other tiebreaker mechanism, which gives priority to an earlier-placed trade when two trades come in at the same price. The Kakaku Yusen system is opposite of how trades are filled on American exchanges.
The strategy of selecting globally-based investment instruments as part of an investment portfolio. International investing includes such investment vehicles as mutual funds, American Depository Receipts, exchange-traded funds (ETFs) or direct investments in foreign markets. People often invest internationally for diversification, to spread the investment risk among foreign companies and markets; and for growth, to take advantage of emerging markets. International investments can be included in an investment portfolio to provide diversification and growth opportunities. All types of investments involve risk, and international investing may present special risks, including: -Fluctuations in currency exchange rates-Changes in market value-Significant political, economic and social events-Low liquidity-Less access to important information-Foreign legal remedies-Varying market operations and procedures
The analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, this type of analysis looks at several strongly correlated markets or asset classes such as stocks, bonds and commodities. This type of analysis expands on simply looking at each individual market or asset in isolation by also looking at other markets or assets that have a strong relationship to the market or asset being considered. For example, when studying the U.S. market it is worthwhile to look at the U.S. bond market, commodity prices and the U.S. dollar. The changes in the related markets, such as commodity prices, have an impact on the U.S. stock market and need to be understood to obtain a greater understanding of the future direction of the U.S. stock market.
The exchange system comprised of the Nasdaq (National Association of Securities Dealers Automatic Quotation), Nasdaq small-cap market and the Over-the-Counter Bulletin Board (OTCBB) exchange platforms. The Interdealer Quotation System gives investors access to literally thousands of publicly traded companies, from mega-cap names such as Microsoft right down to the smallest of the small-cap stocks.
A transfer of information from one computer to another electronically. In business this typically refers to a Electronic Data Interchange (EDI), which is a system used to communicate business and financial transactions between parties. EDI usually takes the form of direct transactions between computers, databases and order systems. The development of the internet gave EDI a real shot in the arm. Nevertheless, many EDI transactions use XML format instead of traditional EDI data formats such as X12 or EDIFACT. These transaction are sent via web using standard http protocol. Interchange can also refer to a web application server for e-commerce which is used to build customized e-commerce solutions.
1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin". 2. The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.3. In a general business context, the difference between a product's (or service's) selling price and the cost of production.4. The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate. This portion is retained as profit by the lender. 1. Buying with borrowed money can be extremely risky because both gains and losses are amplified. That is, while the potential for greater profit exists, this comes at a hefty price - the potential for greater losses. Margin also subjects the investor to a number of unique risks such as interest payments for use of the borrowed money.2. For example, if you hold futures contracts in a margin account, you have to maintain a certain amount of margin depending on how the market value of the contracts change.3. Gross profit margin (which is the difference between revenue and expenses) is one measure of a company's performance.4. The formula for calculating the interest rate on an adjustable-rate mortgage is the adjustment-index rate (e.g. Treasury Index) plus the percentage of the margin. For example, if the Treasury Index is 6% and the interest rate on the mortgage is 8%, the margin is 2%.