A technical indicator that compares the number of advancing stocks on the Tokyo Stock Exchange to the number that are declining. The result is used by technical traders to determine the likelihood of a market correction. |||This indicator would be classified as a market breadth indicator because it only incorporates the number of advancing and declining issues to determine the broad support of any given move. Other types of breadth indicators include the advance-decline index, cumulative volume index, McClellan oscillator and Haurlan index.
Slang for doing the grassroots research of a prospective investment. Individual investors and fund managers alike partake in tire kicking. Asking your full service broker or financial adviser about a company, calling and visiting a company, and doing general investigative research prior to investing in a stock are all examples of kicking the tires. The term originates from people's tendency to give a scrutinizing kick to the front tire of an automobile they are looking to buy while the salesman makes his or her pitch. Despite the metaphorical use of the term in stock picking, "kicking the tires" of a prospective investment is always an advisable thing to do, as the more you know about an investment, the better.
An embedded option that allows the firm which purchased the real option to expand its operations in the future at little or no cost. An expansion option, unlike typical options which obtain their value from an underlying security, receives its worth from the flexibility it provides to a company. once the initial stage of a capital project has been implemented, an expansion option holder can decide whether to move forward with the project. In terms of real estate, expansion options provide tenants with the choice to add more space to their living premises. For example, if a company is unsure as to whether or not its newly introduced product will be successful in the market, it can purchase an expansion option. The expansion option will allow the firm to assess the economic environment in the future and determine whether it is profitable to continue developing the particular product. If the firm initially expected to produce 1,000 units five years, exercising the expansion option would let them purchase additional equipment to increase capacity for a price which is below market value. If economic conditions are good and expansion is desirable, the option will be exercised. Otherwise, the expansion option expires.
An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents. |||GNP is a measure of a country's economic performance, or what its citizens produced (i.e. goods and services) and whether they produced these items within its borders.
A right that allows a shareholder to receive reduced sales charges when the amount of mutual funds purchased, plus the amount already held, equals an ROA breakpoint. In addition, there is no time limit on how long the mutual fund needs to be held to qualify for a ROA. For example: You wish to buy $2,000 of Fund ABC with a sales charge of 5.50% to add to your existing $19,000 of the same fund in your account. Given that Fund ABC is linked to an ROA and that the breakpoint is $20,000, you would qualify for a reduced sales charge (i.e. 5.25%). Also, the entire purchase ($2,000) would qualify for the reduced sales charge and not just the amount in excess of $20,000.
A method of analysis that involves looking at the "big picture" first, and then analyzing the details of smaller components. By first analyzing the overall picture, such as a macroeconomic trend, an investor can start narrowing potential companies to analyze. A trader that uses technical analysis may use top-down analysis as part of their trading system. |||A day trader may first analyze daily or weekly charts to determine the asset's longer term trend, and strong support and resistance levels; and then move to a smaller time frame of charts, to determine a good entry point. For example, if an asset is trending upwards on the daily chart, and there is good bullish momentum on the hourly chart, a trader using top-down analysis could then move to a 15 minute chart and find a good entry point for a long position.
The payment of something of value to an individual with the goal of persuading or influencing his or her decision or performance in a certain situation. A kickback may be in the form of cash or favors, and can be legal or illegal. A common form of kickbacks, in the context of investing, is a commission rebate for investors who trade frequently.
The sum of all income earned while producing goods and services within a nation's borders. Gross domestic income (GDI) is a lesser-known calculation stat used by the Federal Reserve to gauge economic activity based on income. It differs from gross domestic product (GDP), which gauges economic activity on expenditure.GDI is calculated as the total income payable in GDP income accounts. It can be calculated in two ways:1. GDI = compensation of employees + gross operating surplus + gross mixed income + taxes – subsidies on production and importsCompensation of employees encompasses the total compensation to employees for services rendered. Gross operating surplus, also known as profits, refers to the surpluses of incorporated businesses. Gross mixed income is the same as gross operating surplus, but for unincorporated businesses.2. GDI = rental income + interest income + profits + wages + statistical adjustmentsStatistical adjustments may include corporate income tax, dividends and undistributed profits. |||Theoretically, GDI should equal GDP; however, because GDP is calculated based on expenditure accounts, a difference usually exists. The market value of goods and services consumed often differs, because of measurement errors, from the amount of income earned to produce them.