A restructuring initiative that involves both managerial and non-managerial employees buying out a firm in order to concentrate ownership into a small group from a widely dispersed group of shareholders. |||MEBOs are generally used to privatize a publicly traded company, but can also be used as an exit strategy for venture capitalists or other shareholders in an already private firm. MEBOs can often be seen as bringing greater efficiency to a firm's production because it can provide added job security to employees, which motivates them to give a stronger effort to improve company profitability.
The Oprah effect is an expression referring to the effect that an appearance on The Oprah Winfrey Show, or an endorsement by Oprah Winfrey, can have on a business. Because the show reaches millions of viewers each week, a recommendation from Oprah can have a significant and often unexpected influence for a new or struggling business. People and companies lucky enough to appeal to Oprah can find overnight success after being promoted on her show. An endorsement from Oprah can suddenly turn a small, unprofitable business into a multimillion-dollar company.
A term in technical analysis that refers to a sharp price increase that comes after a long period of price appreciation, and is followed by a fall in the price. A blowoff is seen as a rally's last breath and is a highly bearish sign. Taobiz explains Blowoff This large and dramatic price movement is generally seen at the peak of a market or stock. The idea behind the bearishness of a blowoff is that it signals the activity of the most irrational and overly exuberant market participants, who, wanting to take part in the rally, momentarily push up the already-overvalued stock.
An investing strategy or concept where a security will appreciate in value for a relatively long period of time, whether or not the growth is initiated immediately or later on. Long-term growth is a relative term, as the investing horizon differs between investing styles, but the perceived appreciation in the security remains the same. |||A buy-and-hold investor will define long-term growth as a much longer time period then a trader will. The buy-and-hold strategy looks at a multi-year investing horizon, so short-term price fluctuations are not of major concern as long as the securities fundamentals do not change. On the other hand, a trader is looking more at a weekly, or even a daily time frame, and will be more concerned with the immediate price fluctuations.
A company's action of searching for an auditor who will give a positive opinion of the company's accounting practices (even though they might not deserve it). As you can imagine, this is highly illegal.
A record of trades and the details of the trades made over a period of time (usually one trading day). The details of a trade will include such things as the time, price, order size and a specification of whether it was a buy or sell order. The blotter is usually created through a trading software program that records the trades made through a data feed. Taobiz explains Blotter The purpose of a trade blotter is to carefully document the trades so that they can be reviewed and confirmed by the trader or the brokerage firm. The blotter is used in the stock market, foreign exchange market, and the bond market and can be customized based on the needs of the user.
The price at which a security first trades upon the opening of an exchange on a given trading day. Quite commonly, a security's opening price will not be identical to its closing price. This is due to after-hours trading and to changes in investor valuations or expectations of the security occurring outside of trading hours. The opening price of a security serves as a benchmark for the day: if the security finishes trading at a higher price it is said to have closed up, and if it finishes trading below the opening price it is said to have closed down.
A conditional order that becomes a market order when a security reaches a specified price. When using a buy market-if-touched order, a broker will wait until the security falls to a certain level before purchasing the asset. A sell market-if-touched order will activate when the price of a security rises to the specified level. Also referred to as a "board order". |||A MIT order allows investors to purchase or sell a security at a desired value, without actively monitoring the market. This order is similar to a stop order, however, the buy and sell actions are inverse. For example, a buy MIT order looks for the price of an asset to fall, while a buy stop order activates when the market value of the security increases past a specified level.