The spread between the high and low prices traded during a period of time. Taobiz explains Trading Range When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building.
A renewable fixed income security with variable coupon rates that are periodically reset. |||Usually the coupon is set on a weekly basis at a fixed spread over the T-bill rate.
A dividend reinvestment plan that uses dividends to purchase more shares directly from the company's treasury stock. Oftentimes, because the company is issuing the shares, it will offer the shareholder a small discount on the share price; this discount typically ranges from 2-4%. Taobiz explains Treasury DRIP The other common type of dividend reinvestment plan is the market DRIP. In a market drip, a company uses its cash dividends to purchase shares on the open market, rather than from its treasury. Using a DRIP can help companies to develop investor loyalty and a stable shareholder base. The advantages to shareholders include convenience and a lack of commission charges on acquiring new shares through a DRIP program
An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. Watch: Variable Annuity Basics |||The portfolio generally invests in equity securities and its performance determines the amount of this total payment.
A category of stocks relating to the transportation of goods or customers. The transportation sector is made up of airlines, railroads and trucking companies. Taobiz explains Transportation Sector The performance of the transportation sector is sensitive to the price of oil. Because operations revolve around the use of vehicles, fuel prices represent a significant cost to transportation companies. As the price of oil rises, transportation companies will be expected to earn less. Inversely, these companies do well when the cost of fuel decreases.
The extent to which investors have ready access to any required financial information about a company such as price levels, market depth and audited financial reports. Classically defined as when "much is known by many", transparency is one of the silent prerequisites of any free and efficient market. When transparency relates to information flow from the company to investors, it is also known as "full disclosure". Taobiz explains Transparency Transparency helps to prevent the corruption that inevitably occurs when a select few have access to important information, allowing them to use it for personal gain. Reduced price volatility also tends to be a byproduct of a transparent market because all the market participants can base decisions of value on the same data. There are dozens of federal regulations in place to ensure transparency in our markets. Companies also have a strong motivation to provide disclosure, as transparency is generally rewarded through the stock's performance.
A future date used in determining the value of a product that fluctuates in price. Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, option contracts, and the interest payable or receivable on personal accounts. Also referred to as "valuta". |||For example, in the case of savings bonds, the interest is compounded semi-annually so the value date is every six months. This removes any uncertainty for investors because their calculations of interest payments will be the same as the government's.
The procedure by which ownership of a stock moves from one party to another. The transfer agent follows a detailed, documented series of steps governed by the SEC to ensure that a transaction has been completed. Taobiz explains Transfer Procedures The transfer agent has record of the personal details of an owner of a share. And when a share's ownership changes, the transfer agent cancels the stock certificate of the seller and makes a new stock certificate for the buyer.