A privately-owned investment company that is licensed by the Small Business Administration (SBA). Small Business Investment Companies (SBICs) supply small businesses with financing in both the equity and debt arenas. They provide a viable alternative to venture capital firms for many small enterprises seeking startup capital. Taobiz explains Small Business Investment Company - SBIC Small Business Investment Companies are allowed to borrow from the federal government in order to augment the funds of private investors. SBICs usually focus on investments in the $100,000 to $250,000 range, and tend to be considerably more forgiving than venture capital firms in their underwriting requirements.
1. A market that currently exhibits low trading volumes and/or low volatility levels. The term slow market can be used to describe a market with few issues coming up for sale to investors through initial public offerings and secondary offerings in the equity markets, or through new issuance in the corporate bond market. 2. A market in which trades are not executed at the fastest possible speed. Generally, a delay of more than a few seconds during the execution of a trade is considered slow, especially on the electronic trading exchanges. Taobiz explains Slow Market 1. Virtually any market will experience periods of low activity, ranging from a single day to months or longer. A slow market does not imply a rising or falling market, but it may imply a stationary or "hovering" market. 2. Regulation NMS was implemented to speed up situations in which slow markets exist by routing eligible orders to different exchanges for their immediate execution.
An investment climate marked by skeptical investor behavior. A skittish market might occur following a significant downturn, when the market appears to have recovered but investors remain fearful and hesitant to buy in because they either don’t believe that economic conditions have really improved or because they are afraid of the next downturn and want to avoid it by staying out of the market. Taobiz explains Skittish Market Investors who get carried away by current market conditions and allow their emotions to influence their behavior more than the numbers tend to act irrationally and against their best interests. To overcome the tendency to buy when the market is up and sell when it’s down, successful investors like Warren Buffett recommend choosing stocks that are momentarily underpriced compared to the underlying value of the company and holding those investments for the long term.
A design used to show how companies or industries are affected by external factors. The six-force model expands on Harvard Business School professor Michael Porter's five-force model with the addition of "complementors," or companies that produce closely related products or services, as a sixth factor. Taobiz explains Six-Force Model The five-force model on which the six-force model is based describes the impact of existing rivals, bargaining power of customers, bargaining power of suppliers, substitutes and new entrants on a business or industry's success. These models can be used to analyze a business or industry's current position and its competitive advantage (or lack thereof).
Switerzland's primary stock exchange, located in Zurich. The SIX Swiss Exchange trades Swiss government bonds, stocks and derivative products such as stock options. The SIX Swiss Exchange is among the world’s 20 major stock exchanges. Taobiz explains SIX Swiss Exchange The SIX Swiss Exchange was formerly known as the SWX Swiss Exchange, and was the first stock exchange to support fully automated trading, clearing and settlement (1995). Switzerland’s other exchange is the Bern eXchange (BX).
A stock with a price that is below $10 per share. Although there are many large companies that trade below $10 per share, "single-digit midget" is a buzz word usually used to describe stocks of companies which have seen a price drop from much higher levels. This term was widely used after many dot-coms' prices dropped severely in the early 21st century. Taobiz explains Single-Digit Midget A recently designated single-digit midget could be considered more speculative due to the potentially large fluctuation in price levels. New stock issues that are single-digit midgets could also be considered more speculative because they are subject to limited listing requirements, along with fewer filing and regulatory standards, due to their smaller market capitalization.
A sideways market occurs where the price trend of a certain trading instrument, such as a stock, has been experiencing neither an uptrend nor a downtrend. Instead, the price activity has been oscillating between a relatively narrow range without forming any distinct trends. A sideways market is said to be trading in a horizontal range or channel, with neither the bears nor the bulls taking control of prices. Taobiz explains Sideways Market / Sideways Drift Market participants can exploit a sideways market by anticipating breakouts, either above or below the channel formed during the sideways market. Sideways markets are also referred to as choppy or non-trending. If the sideways drift is expected to remain for a long period of time, investor can earn profits by selling options with approaching expiration dates.
A company with a large number of assets tied up in projects with uncertain returns. Taobiz explains Speculative Company The projects that a speculative company is participating in have a high probability of failure. However, should a project succeed, potential returns can be very large. Oil companies are an example of a speculative company, since they are continuously committing a large number of assets to exploration projects. These companies often experience many failures before a project succeeds. However, should they find oil, potential returns are huge. The stock of speculative companies is not necessarily classified as speculative stock, since the expected return of an established speculative company's stock (such as Exxon Mobil Corp or Shell Canada) can be reasonably estimated.