A standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid "odd lots" and to facilitate easier trading. It's more difficult for a broker to find a buyer for, say, 17 shares, than if everybody agrees to trade in 100 share lots. Taobiz explains Board Lot For example, a stock exchange might define one board lot as equaling 1,000 shares for stock priced under $1, and 100 shares for shares of more than $1. The thinking is that standardization increases liquidity thus lowering spreads and making the market more efficient for everybody.
This occurs when a salesperson continues their sales pitch after the customer has already decided to purchase. This mistake can sometimes annoy the customer, and could potentially cause the customer to change their mind, causing the deal to fall through. Over-selling, although it may be done with good intentions, usually does more harm than good. Great salespeople know when to close the sale and when the customer is ready to buy.
Stock of a well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times. Taobiz explains Blue-Chip Stock These stocks are usually less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500.
The total cost to society as a whole for producing one further unit, or taking one further action, in an economy. This total cost of producing one extra unit of something is not simply the direct cost borne by the producer, but also must include the costs to the external environment and other stakeholders.Calculated as:Where:MSC = Marginal Social Cost MPC = Marginal Private Cost MEC = Marginal External Cost |||For example, take the case of a coal plant polluting a local river. If the coal plant's marginal social costs are more than its marginal private costs, the MEC must therefore be negative. The cost of the produced energy is more than just the rate charged by the company, as society must bear the costs of a polluted river and the effects of that action. While marginal social cost represents a powerful economic principle, it can rarely be expressed in tangible dollars. We know that there are costs incurred by certain acts of production, although their far-reaching effects make them difficult to quantify. The theory helps legislators and economists come up with a framework to "incentivize" companies to reduce the marginal social costs of their actions.
An analyst recommendation meaning a stock is expected to do slightly better than the market return. Also known as "market outperform", "moderate buy", or "accumulate". Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy.
Requests for information sent out by the Securities and Exchange Commission to market makers. Taobiz explains Blue Sheets Blue sheets provide the SEC with detailed information about trades performed by a firm and its clients. The information includes the security's name, the date traded, price, transaction size, and a list of the parties involved. The questionnaires came to be known as blue sheets because they were printed on blue paper. Today, due to the high volumes of trades, this information is provided electronically though electronic blue sheet systems, or EBS.
A component of Keynesian theory, MPC represents the proportion of an aggregate raise in pay that is spent on the consumption of goods and services, as opposed to being saved. |||Let's illustrate this with an example. Suppose you receive a bonus with your paycheck, and it's $500 on top of your normal annual earnings. You suddenly have $500 more in income than you did before. If you decide to spend $400 of this marginal increase in income on a new business suit, your marginal propensity to consume will be 0.8 ($400 divided by $500).
A trader who has another source of income, and does not trade as a means, but rather as a savings plan, or bonus, etc. This person typically does not trade in large volumes, leaning more towards trying to earn smaller returns. Such a trader is not significantly experienced or knowledgeable in the field, and will therefore tend to stick to less risky investments. Taobiz explains Blue Collar Trader There are many websites, and other information forums to aid blue collar investors in trading. With the right information, blue collar trading can give the trader an extra income source. Blue collar investors work with brokers to gain advice on which investment decisions to make, and will pay a fee for their services, however, due to a highly competitive market, the commissions and fees for such brokers has decreased significantly.