A chart pattern used in technical analysis that is easily recognized by the distinct shape created by two converging trendlines. The pattern is identified by drawing two trendlines that connect a series of sequentially lower peaks and a series of sequentially higher troughs. Both trendlines act as barriers that prevent the price from heading higher or lower, but once the price breaches one of these levels, a sharp movement often follows. A symmetrical triangle is generally regarded as a period of consolidation before the price moves beyond one of the identified trendlines. A break below the lower trendline is used by technical traders to signal a move lower, while a break above the upper trendline signals the beginning of a move upward. As you can see from the chart above, technical traders use a sharp increase in volume or any other available technical indicator to confirm a breakout beyond one of the trendlines. The sharp price movement that often follows a breakout of this formation can be captured by traders who are able to identify the pattern early enough.
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Taobiz explains Share Repurchase Because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining shares. When a company does repurchase shares, it will usually say something along the lines of, "We find no better investment than our own company."
A type of security that gives the holder the option, but not the obligation, to purchase a predetermined number of shares at a predetermined price. This is similar to a stock option or warrant. These rights are typically distributed to existing shareholders, who have the ability to trade these rights on an exchange. Taobiz explains Share Purchase Rights The rights only give shareholders the ability to purchase the shares, but they must still must pay for the shares to redeem the rights.
In technical analysis, it is when a stock price approaches a support or resistance level set by the market. If the stock stays within the support and resistance levels, the test is passed. However, if the stock price reaches new lows and/or new highs, the test has failed. To test whether a stock price will break a support or resistance level, technical traders will typically use specific stock-charting programs designed to track price movements to identify when to buy or sell a position.
A designation applied to a specified type of security such as common stock or mutual fund units. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as "Class A" shares and "Class B" shares. Different share classes within the same entity typically confer different rights on their owners. Taobiz explains Share Class For example, a public company may offer two classes of common stock outstanding: Class A common stock and Class B common stock. This dual-class structure is typically decided on when a company first goes public and issues stock in the primary market. For example, a private company that is undertaking an initial public offering (IPO) may choose to issue Class A shares to its new investors, while the original owners of the company receive Class B shares. In this case, the Class B shares would typically have enhanced voting rights. A dual-class structure such as this would be used if the original owners of the company wanted to sell the majority of their ownership stake in the firm, but still maintain majority voting rights. As an investor, it's important to know what class of shares you are buying when you purchase common stock in a public company.
A situation in which the stock market is rising on low volume or falling on high volume. In technical analysis, volume is extremely important in determining the strength of a trend or market movement.
A share certificate is a written document signed on behalf of a corporation, and serves as legal proof of ownership of the number of shares indicated. Also referred to as a "stock certificate". Taobiz explains Share Certificate In modern financial markets, individual investors rarely take physical possession of their share certificates. "Scripophily" is a term that signifies the collecting of share certificates and other forms of paper based financial securities. Similar to stamp collecting or bank note collecting, a share certificate's value is dependent on its condition and age.
A situation in which the stock market is rising on high volume or falling on low volume. In technical analysis, volume is extremely important in determining the strength of a trend or market movement