1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased. 2. The price at which a market maker is willing to buy a security. The market maker will also display an ask price, or the amount and price at which it is willing to sell. Taobiz explains Bid This is the opposite of the ask, which stipulates the price a seller is willing to accept for a security and the quantity of the security to be sold at that price. 1. An example of a bid in the market would be $23.53 x 1,000, which means that an investor is willing to purchase 1,000 shares at the price of $23.53. If a seller in the market is willing to sell that amount for that price, then the transaction is completed. 2. Market makers are vital to the efficiency and liquidity of the marketplace. By quoting both bid and ask prices on the market, they always allow investors to buy or sell a security if they need to.
A buzzword describing new, high-growth industries that are on the cutting edge of technology and are the driving force of economic growth. The new economy is commonly believed to have started in the late 1990s, as high tech tools, such as the internet, and increasingly powerful computers, began penetrating the consumer and business marketplace. The thought that a "new economy" had arrived was evident in the hysteria surrounding the tech-bubble of the late '90s and early 2000s. Without fully considering macroeconomic factors, investors and financial institutions bid up stock prices to unprecedented highs. Although the tech bubble has long since burst, the remaining firms have remained very innovative and at the forefront of technology. Companies in the new economy are heavily involved in the internet and biotech industries, but the ripple effects of new technologies has spread out to all other industries as well.
A term used to describe financial results during the period of the last 12 months. |||Can also be called Trailing Twelve Months (TTM). LTM just represents the period of time. It is often used with sales, earnings, etc.
The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it. Taobiz explains Bid-Ask Spread For example, if the bid price is $20 and the ask price is $21 then the "bid-ask spread" is $1. The size of the spread from one asset to another will differ mainly because of the difference in liquidity of each asset. For example, currency is considered the most liquid asset in the world and the bid-ask spread in the currency market is one of the smallest (one-hundredth of a percent). On the other hand, less liquid assets such as a small-cap stock may have spreads that are equivalent to a percent or two of the asset's value.
A slang term referring to an instance in which a company gets hurt materially or put out of business as a result of head-to-head competition with Microsoft. Microsoft's size, resources and expertise mean there is always a risk that the company will steal market share. Many competitors have tried to beat the software giant and ended up suffering serious damage. This term is derived from what happened in the 1990s in the market for internet browsers. Originally, Netscape was the leader, and its cutting-edge browser controlled a large portion of the market. However, Microsoft put huge resources into developing its own browser, Internet Explorer, which gobbled up market share from Netscape. This dashed Netscape's hopes for any long-term success. Some critics questioned the legality of Microsoft's competition strategy, which essentially consisted of giving Internet Explorer away for free by bundling it with the Windows operating system. In the end, it didn't matter - a decimated Netscape was bought out by America online in 1998.
A summary of all the costs associated with bringing one unit of oil to the marketplace, and all of the revenues from the sale of all the products generated from that same unit. The netback is calculated by taking all of the revenues from the oil, less all costs associated with getting the oil to a market. These costs can include, but are not limited to, importing, transportation, production and refining costs, and royalty fees. For example, let's say it costs a total of US$125 to convert one barrel of light crude oil into heating oil, gasoline, diesel and petrochemical byproducts. Next, assume that all of those products could sell for a total of US$200. The netback in this example would be $75 ($200 - $125). Keep in mind that the costs associated with converting one barrel include all of the costs the company incurred to get that barrel to the marketplace.This figure allows exploration and production firms to compare their costs with those of their competitors; it also allows for more efficient planning regarding which products a company should focus on producing.
An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first. |||LIFO assumes that an entity sells, uses or disposes of its newest inventory first. If an asset is sold for less than it is acquired for, then the difference is considered a capital loss. If an asset is sold for more than it is acquired for, the difference is considered a capital gain. Using the LIFO method to evaluate and manage inventory can be tax advantageous, but it may also increase tax liability.
An indication of whether the latest bid price is higher, lower, or the same as the previous bid. Taobiz explains Bid Tick The direction of the bid tick is important to institutional traders, who move large amounts of stock within a small period of time. Day traders also rely heavily on the direction of the bid tick when making their trade decisions.