Financial industry jargon for "basis point." The term came into popular usage as an easier way of referring to the basis points' "BPS" acronym. It is sometimes also pronounced "bips". A basis point is 1/100 of a percentage point in the context of interest rates and bond yields. For example, an interest rate increase of 0.25 percentage point by the Federal Reserve would be generally referred to as an increase of 25 basis points, and by financial industry insiders as an increase of 25 beeps.
A multi-factor model created by Barra Inc., which is used to measure the overall risk associated with a security relative to the market. Barra Risk Factor Analysis incorporates over 40 data metrics including: earnings growth, share turnover and senior debt rating. The model then measures risk factors associated with three main components: industry risk, risk from exposure to different investment themes and company-specific risk. The Barra Risk Factor Analysis model measures a security's relative risk with a single value-at-risk (VaR) number. This number represents a percentile rank between 0 and 100, with 0 being the least volatile and 100 being the most volatile, relative to the U.S. market. For instance, a security with a value-at-risk number of 80 is calculated to have a greater level of price volatility than 80% of securities in the market and its specific sector.
AUTEX is an electronic platform from Thomson Financial that allows potential buyers or sellers of a large block of shares to identify other large traders on the bid and ask side of a particular stock. By showing "trade advertisements" in a stock issue, the interface presents indicators of interest among traders who wish to get a feel for the market liquidity before executing a large trade. Imagine two traders in Company XYZ stock, one looking to sell 100,000 shares and another looking to purchase 100,000 shares. By showing interest on the AUTEX system, they can identify each other without the risk of placing a large market order that could push the stock higher due to the immediate share imbalance. once interest has been established on both sides of the trade, the trade will be executed in the standard manner, whether it be on the stock exchange or over-the-counter.
Formerly located in Bremen, Germany, this stock exchange is now defunct. The Bremen exchange merged with the Berlin stock exchange in 2003. It is now known as the Borse Berlin-Bremen stock exchange. The Borse Berlin-Bremen exchange is one of eight stock exchanges in Germany. Among them, the Frankfurt Stock Exchange is one of the largest in the world. This series of exchanges plays a substantial role in world commerce.
One of several regional stock exchanges located throughout the U.S. As the name states, the exchange is located in Boston, Massachusetts. The BSE is the third-oldest stock exchange in the U.S. as it was originally founded in 1834. Nasdaq purchased the BSE in 2007 for $61 million. Its normal hours of operation are 8am to 7pm on weekdays except for holidays. The exchange formerly owned two subsidiaries: the Boston Options Regulation and the BSE Clearing Corporation.
An order to purchase a security at or below a specified price. A buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock. By using a buy limit order, the investor is guaranteed to pay that price or better, meaning that he or she will pay the specified price or less for the purchase of the security. While the price is guaranteed, the filling of the order is not. In other words, if the specified price is never met, the order will not be filled and the investor may miss out on the trading opportunity. A buy limit order ensures that negative slippage will not occur - the buyer will not get a worse price than he or she expects. Buy limit orders provide investors and traders with a means of precisely entering a position. For example, a buy limit order can be put in for $2.40 when a stock is trading at $2.45. If the price dips to $2.40, the order will automatically be executed.
A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who "buy a bounce" attempt to profit from a short-term correction or "bounce" off of the identified support. In order to use this strategy most effectively, a trader has to be sure that he or she is able to identify a valid level of support. Some traders may wish to enter a position before the signs of a bounce off of a support level, but generally this is a high-risk strategy and can result in devastating losses. Most traders will want to confirm a bounce off of a support level by using a combination of other technical indicators before entering a position.
Located in Buenos Aires, this exchange functions as the primary exchange in Argentina. Its key index is the MERVAL. Other indices include the Burcap, Bolsa General and MAR. The Buenos Aires Stock Exchange succeeded the Banco Mercantil as the primary exchange in 1854. It is a self-directed, not-for-profit civil entity. Representatives of all of the sectors of Argentina's economy sit on its board of directors