A sector of the economy that consists of businesses that sell nonessential goods and services. Companies in this sector include retailers, media companies, consumer services companies, consumer durables and apparel companies, and automobiles and components companies. It is possible to invest in all the consumer discretionary companies at once by purchasing shares of a consumer discretionary mutual fund or exchange-traded fund such as Vanguard's Consumer Discretionary ETF. This sector performs better when the economy is doing well. Consumer discretionary is the opposite of consumer staples, which consists of businesses that sell necessities like food and drugs.
One of the four categories (quadrants) of the BCG growth-share matrix that represents the division within a company that has a small market share in a mature industry. A dog does not require substantial investment capital; however, because it is found within a mature industry, profits returned are minimal and capital allocated to such divisions can be used more effectively elsewhere. But, this is not always the case, as dogs may represent a strategic part of a company regardless of profits.
A market in which market makers (or specialists) are required to give both a firm bid and firm ask for each security in which they make a market. In other words, those making the market must be willing to both buy and sell at the prices they quote. Also known as a "two-way market". People mainly use this term in the context of the Financial Industry Regulatory Authority (FINRA) requirement that Nasdaq market makers give both a firm bid and firm ask for each security in which they make a market. However, this term can also be applied in the bond market. For example, some broker-dealers make two-sided markets on larger, actively traded bonds and rarely make a two-sided market in inactively traded bonds. The theory is that this helps to enhance liquidity and market efficiency.
A U.S. federal agency established by the Commodity Futures Trading Commission Act of 1974. It ensures the open and efficient operation of the futures markets. There are five futures markets commissioners who are appointed by the president (subject to Senate approval). |||The CFTC guards investors from manipulation, abusive trade practices, and fraud.
Distribution stock refers to a large block of a security which is sold into the market gradually in smaller blocks rather than in a single large block. This is typically done to avoid inundating the market with the security and driving down the average selling price of the securities. It is often necessary for large investment funds to employ traders to watch the market and gradually liquidate significant holdings of securities at the best prices possible. These traders employ a number of techniques to sell distribution stock over time. If a trader is successful, he or she can sell a large position over a period of days, weeks or months without depressing prices or tipping off others to the presence of a large seller in the market.
In currencies, this is the abbreviation for the Nicaraguan Cordoba. |||The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
A slang term referring to a financial seminar that presents new products or issues of securities to potential buyers. Also known as a "road show". The term originated in the late 19th century to describe circuses which featured dog and pony acts that toured towns and cities across the United States.
The situation at the opening of a trading day when there is a wide spread between the bid and ask prices for a security. This situation can arise because market makers and market participants have yet to submit their bid and ask prices to the market, leaving very few (uncompetitive) orders to appear as the lowest ask and highest bid price.