An equity-based exotic option from the family of mountain range options. Atlas options have a payout that is based on the performance of the underlying securities, which are stocks. At maturity, some of the best- and worst-performing stocks are removed from this group of underlying securities, at which point the payout is calculated on the remainder of the securities. Taobiz explains Atlas Options Atlas options are typically only traded by sophisticated institutional investors who have the resources and risk tolerance to accept what can be an extremely complex security. As the time to maturity draws nearer, the price or value of an Atlas option may become more readily apparent as the top and bottom performers clearly separate themselves from the rest of the pack. These options were first introduced in the late 1990s, and were made up of European-based equities. Most are created as call options, with long terms to maturity.
AQO is a number that summarizes analysts' ratings for a particular company. Taobiz explains Average Qualitative Opinion - AQO The AQO is a way of expressing Buy/Hold/Sell opinions numerically.
The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down. Taobiz explains Average Down Sometimes this is a good strategy, other times it's better to sell off a beaten down stock rather than buying more shares.
A way of calculating cost basis when figuring out gains or losses from a sale of mutual fund shares. This is done by adding up the number of shares owned as well as the total dollar amount of the shares; the dollar amount is divided by the number of shares. This number (the average cost basis) is then multiplied by the number of shares sold and compared to the actual sale amount to compute a gain or loss. Taobiz explains Average Cost Basis Method Many mutual fund companies include an average basis number on the confirmation statement, which is mailed to the client whenever shares are purchased or redeemed. The shareholder is not required to use this method.
A provision under the U.S. Bankruptcy Code prohibiting creditors from beginning or continuing proceedings for collecting owed amounts from a firm who files for bankruptcy under Chapter 11. Taobiz explains Automatic Stay An automatic stay can only be lifted by the bankruptcy judge.
Baby Berkshire refers to the 50:1 stock split after the market close on January 20th, 2010 by Berkshire Hathaway Class B shares. This split made the value of each share much smaller as far as price was concerned. At the market close, Berkshire Class B shares were trading at $3,476. The stock split came as a result of Berkshire’s acquisition of Burlington Northern Santa Fe. Taobiz explains Baby Berkshire Prior to the stock split, Berkshire Class B shares did not have enough trading volume to make them eligible for inclusion in the S&P 500 market index. However, lowering the market price through the stock split put the stock into a more conventional trading range, where it became much more frequently traded. Berkshire Class B shares were added to the S&P 500 on February 12th, 2010, taking the spot previously held by Burlington Northern Santa Fe. The nickname of Baby Berkshire follows the tradition of Baby Bells and Baby Bills.
Shares in companies based in mainland China that trade on either the Shanghai or Shenzhen stock exchanges. B-Shares are eligible for foreign investment provided the investment account is in the proper currency (Shanghai B-shares trade in U.S. dollars, while Shenzhen B-shares trade in Hong Kong dollars). Taobiz explains B-Shares B-shares trade alongside A-shares in the Chinese companies on the mainland exchanges. Changes in government regulation have allowed Chinese citizens to invest in both A-shares and B-shares after previously limiting investment to only the A-shares. B-shares are typically what a mutual fund or exchange-traded fund that invests in China will hold, along with H-shares from the Hong Kong Exchange and N-shares, which trade on the New York Stock Exchange. As part of a long-term effort to open up China's economy, plans are in place for the two share types to be combined in the future to allow for more uniform investment policies; if and when this occurs it should encourage more outside investment in the world's most populous country.
When the bid on an order is lower (or the ask price is higher) than the current market price for the security. Taobiz explains Away From The Market In this case, the bid/ask spread is above or below the current price of the stock.