This is a term that refers to a company's stock symbol or ticker symbol. Every security listed anywhere on the globe has a unique symbol for the security. Knowing the symbol allows investors to check the price of the security. Taobiz explains Hard-Coded Stock In the U.S., on the New York Stock Exchange, stocks can have symbols with one, two or three letters in the symbol. Nasdaq-listed stocks have stock symbols with four or five letters.
A yield-rate environment in which short-term interest rates are increasing at a faster rate than long-term interest rates. This causes the yield curve to flatten as short-term and long-term rates start to converge. |||At any time, the yield curve is either in a state of steepening or flattening. These fluctuations occur due to investor demand, change in interest rates, and institutional investors trading large blocks of fixed-income securities. If the curve is flattening, the spread between long-term rates and short-term rates is narrowing. A bear flattener often occurs when the government raises interest rates in the short term. Increasing interest rates drives short-term bond prices down, increasing their yields rapidly in the short term, relative to long-term securities.
A market order that must be promptly executed so that the request is immediately filled. In most cases, the trader will be required to hit the bid for purchase orders or, in case of a sell, to take the offer. Taobiz explains Held Order When filling a held order, traders have very little discretion when finding a price because time is scarce. Typically, they will be forced to match the highest bid or offer the lowest selling price to facilitate a quick transaction. Held orders are used by investors who want to quickly change their exposure to a certain stock.
A situation in which a security is restricted from trading when the stock exchange opens for the day. Stock exchanges can halt trading on securities at any time, but trading usually resumes in under an hour. If the halt occurs before the beginning of a trading day, the stock is considered held at the opening. This kind of halt in trading is done to protect investors. Taobiz explains Held At The Opening There are three main reasons why a stock is held at the opening: 1. The company plans to release new information that could have a drastic impact on the stock's price. Time is given for participants to fully understand the new information and place buy and sell orders accordingly. 2. There is an imbalance of buy and sell orders. 3. The stock does not meet the listing requirements set by the regulatory body. For example, a stock may be held at opening if there is a significant imbalance in buy and sell orders before the opening bell, the stock can be held at opening. This will give market specialists time to disseminate the information to investors and make a decision on a fair trading-price range.
Price quotation for a security expressed in terms of yield to maturity. This will usually only be quoted on fixed-income securities such as bonds. |||For example, if a bond price was quoted as 10% and this was also the yield to maturity, then the 10% would be the basis price.
A strategy in a tender offer where an investor short sells a portion of the shares he or she owns. This strategy is used to protect against the risk of loss in the event that the tender offer does not go through. Taobiz explains Hedged Tender For example, imagine a stock was trading at $30, and there was a tender offer for $40 per share. A hedged tender would attempt to lock in the $40 per share even if the offer does not go through.
Relates to a type of business that typically carries a high capital cost (capital-intensive), high barriers to entry and low transportability. The term "heavy" refers to the fact that the items produced by "heavy industry" used to be products such as iron, coal, oil, ships, etc. Today the reference also refers industries that cause disruption to the environment in the form of pollution, deforestation, etc. Taobiz explains Heavy Industry Industries that are typically considered heavy include: 1. Chemicals and plastics 2. Steel and oil refining, production 3. Mining 4. Industrial machinery 5. Mass transit (railways, airlines, shipbuilders) Another trait of heavy industry is that it most often sells its goods to other industrial customers, rather than to the end consumer. Heavy industries tend to be a part of the supply chain of other products. As a result, their stocks will often rally at the beginning of an economic upturn and are often the first to benefit from an increase in demand.
A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. |||The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point. So, a bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points; or interest rates that have risen 1% are said to have increased by 100 basis points.