A former subsidiary of the New York Cotton Exchange (NYCE). The New York Futures Exchange traded options and futures on the NYSE Composite Index. The NYCE was acquired by the New York Board of Trade (NYBOT) in 2003. Taobiz explains New York Futures Exchange - NYFE The NYCE joined the Coffee, Cocoa and Sugar Exchange in 1998, to form the New York Board of Trade (NYBOT). NYBOT was acquired in January, 2007 by IntercontinentalExchange (ICE), which changed NYBOT's name to ICE Futures.
A value investing technique in which a company is valued solely on its net current assets. The net-net investing method focuses on current assets, taking cash and cash equivalents at full value, reducing accounts receivable for doubtful accounts, and reducing inventories to liquidation values. Total liabilities are then deducted from the adjusted current assets to get the company's net-net value. This method was introduced by Benjamin Graham Taobiz explains Net-Net Graham used this method back when financial information was not as readily available, valuations as a whole were very low and net-nets were much more prevalent in the market. When a viable company is identified as a net-net, it is about as close to a sure thing as you can get in the markets. These special occurrences are now basically non-existent in the market, but Graham's theories on valuing a company based on tangible assets remain useful.
An international credit rating agency based out of New York City and London. The company's ratings are used as a guide to investors as to which investments are most likely going to yield a return. It is based on factors such as how small an economic shift would be necessary to affect the standing of the bond, and how much, and what kind of debt is held by the company. |||Along with Moody's and Standard & Poor's, Fitch is one of the top three credit rating agencies. Its rating system is very similar to S&P's in that they both use a letter system. Some examples of letter ratings include:AAA - reliable and stableAA - quality with a bit higher risk A - economic situation could affect finance BBB - middle class-an acceptable riskBB - more prone to economic changes CCC - vulnerable, dependent on current economic situation D - has defaulted before, high risk to again
A security's uptick volume minus its downtick volume over a specified period. An indicator very similar to money flow. Taobiz explains Net Volume The "money flow index" is a useful indicator of net volume.
An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. |||A fairly good financial instrument for those looking to receive a fixed investment income.
A condition in which an investor has more short positions than long positions in a given asset, market, portfolio or trading strategy. Investors who are net short will benefit when the price of the underlying asset decreases. Taobiz explains Net Short Sometimes advanced traders will attribute a larger proportion of their portfolio to short positions rather than to long positions. This type of portfolio will increase as the prices of the underlying securities decrease because investors are borrowing securities from brokers and selling them on the market in hopes of buying them back later at a lower price. This type of position is taken by many large hedge funds and should only be attempted by experienced traders. Being net short is the opposite of being net long.
A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury notes and ten-year treasury bonds. |||A FAN spread is created by either buying a futures contract for five-year treasury notes and selling a futures contract for ten-year treasury bonds or vice versa. Investors speculating on interest rate fluctuations will enter into this type of spread in hopes of under or overpriced treasuries.
The ratio of net profits to revenues for a company or business segment - typically expressed as a percentage – that shows how much of each dollar earned by the company is translated into profits. Net margins can generally be calculated as: Taobiz explains Net Margin Net margins will vary from company to company, and certain ranges can be expected from industry to industry, as similar business constraints exist in each distinct industry. A company like Wal-Mart has made fortunes for its shareholders while operating on net margins less than 5% annually, while at the other end of the spectrum some technology companies can run on net margins of 15-20% or greater. Most publicly traded companies will report their net margins both quarterly (during earnings releases) and in their annual reports. Companies that are able to expand their net margins over time will generally be rewarded with share price growth, as it leads directly to higher levels of profitability.