An order that is executed only when certain conditions of the security being traded, or another security, have been fulfilled. Such prerequisite conditions range in scope and depth. In a simple case, a contingency order may depend on the potential purchaser's ability to sell a different security in his or her portfolio to free the funds to make the purchase. In a more complicated situation, an options contingency order's execution may depend on the share price of the options' underlying stock A stop-loss order can be viewed as a contingency order because it does not become a market order until the price of the stock being sold reaches a predetermined price. This type of order is very useful when applied to the sale or purchase of options.
A market database published by Standard and Poor's. The comprehensive Compustat database provides company data going back 40 to 50 years on over 65,000 securities, as of 2010. The type of information published by Compustat include: Global Industry Classification Standards (GICS), pricing data, earnings data, insider and institutional holdings, and other information directed at investors and analysts. According to Standard and Poor's in 2010, Compustat is used by over 30,000 top buy-side firms managing approximately $139 trillion worldwide. Compustat is also used by the CFA Institute, Internal Revenue Service (IRS) and many leading business schools.
The commodity-product spread is the difference between the price of a raw material commodity and price of a finished product created from that commodity. A common commodity-product spread is the "crack spread". This is the spread between the price of crude oil and the price of refined oil products. Betting on changes in the commodity-product spread is a popular trade in the futures market. The trade can be very useful for firms which convert raw materials to products. These firms could buy commodity futures and sell product futures, hedging risk and helping to lock in profit margins.
The primary market for trading metals such as gold, silver, copper and aluminum. Formerly known as the Commodity Exchange Inc., the COMEX merged with the New York Mercantile exchange in 1994 and became the division responsible for metals trading. The merger between Commodity Exchange Inc. and the New York Mercantile exchange has created the world's largest physical futures trading exchange. Since the merger in 1994, the COMEX division has incorporated the trading of aluminum future contracts.
Any order to buy or sell a security that automatically expires if not executed on the day the order is placed. A day order will not be executed if the limit or stop order prices were not met during the day. A way to increase the life of an order is to order securities on a "good until canceled" basis, in which the trade will not expire until it is canceled or until it reaches a maximum time limit set by the brokerage.
A trading strategy used in the soybean futures market to establish a processing margin. By simultaneously purchasing soybean futures and selling soybean meal futures, a trader is attempting to establish an artificial position in the processing of soybeans, created through the spread.
A situation arising when the bid price of a security exceeds the ask price. Contrary to normal markets where the bid-ask spread is positive, in a cross market the spread is negative. This scenario occurs mainly in volatile and high volume trading. This abnormal market condition occurs mainly in the Nasdaq exchange on orders entered before the opening bell.
A takeover strategy involving the gradual acquisition of the target company's shares. A creeping tender offer is conducted through the open financial markets rather than as a direct bid to the shareholders as is common in regular tender offer procedures. Since an acquirer purchases shares through the open market, a premium is not offered to the shareholder. Creeping tender offers are primarily used to try to circumvent provisions of the Williams Act and obtain shares at a non-inflated price.