Air Pocket Stock
» A term used to describe a stock that has a sudden and sharp decline in price due to unexpected disappointing earnings or results.
Analyst
» A person who works for a brokerage house and spends their time analyzing specific stocks [most of the time in a single industry]. Using the information they gather, they make a Buy, Sell, or Hold recommendation.
Angels
» A term used to describe wealthy individuals who loan capital to beginning business ventures. In return for the substantial risk they take, most require a portion of the equity in the company, hoping for huge payoffs later.
Ankle Biter
» Used to refer to any company or corporation that has a market capitalization of equal to, or less, than $500,000,000. Also called small-cap stocks.
Annual Percentage Yield
» The annual rate of return; it takes into account, compounding. Taking one plus the periodic rate and raising it to the number of periods in a year calculate the APY. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1).
Annual Report
» A document that the Securities and Exchange Commission [SEC] requires companies to give to their shareholders once a year. It includes a copy of the balance sheet, important financial information, and letters from the executives of the company. A more complete version of the annual report is the 10-K.
Annuity
» A contract available from an insurance company, which guarantees specific payments at certain times [such as retirement]. There are several different types of annuities, but the two most common are fixed and variable. Fixed annuities guarantee a payment for a certain amount of money. Variable annuities carry no such guarantee but have a greater potential for appreciation.
Any-Or-All Bid
» A takeover bid in which the acquirer offers to purchase all shares outstanding of a company for a specific, set price. The other common bid is the Two-Tier Bid. Any or All is commonly used in risk arbitrage.
Arbitrage
» When a person or company simultaneously buys and sells shares of a company or other investment instruments in two separate markets. This is a guaranteed way to produce risk-free profits but is hardly worth it unless millions of dollars are involved.
Ask
» The lowest price a seller is willing to accept when selling a security.
Asset
» An asset is any item that has tangible value and can be sold or exchanged for something else that possesses value.
Asset Play
» A term used to describe a company whose assets are not accurately or completely represented in its share price, therefore making it an attractive investment.
Bankmail
» A legally binding agreement in which a bank promises a company that is involved in a takeover bid, that it will not finance any other potential bidder.
Bankrupt
» When a person or company cannot pay back its liabilities and debt. In a publicly owned corporation, assets are transferred from shareholders to bondholders and various other creditors.
Basis Point
» One hundredth of one percent [.001% or 0.01%]. The Basis Point is a tool used to measure the difference in yields and interest rates between various investment instruments.
Basket
» A Group of Securities that is bound together with the intent, or having them bought or sold as a unit.
Bear
» An investor who believes the market as a whole or a particular stock will decline. As opposed to a Bull.
Bear Market
» When the general market or a particular stock falls for a prolonged period of time, usually by 20% or more.
Bearer Bond
» A bond that is unregistered and therefore payable to whoever is in physical possession. Coupons are affixed to the bond itself. The holder / owner of the bond sends in one of the coupons at a set time and receives an interest payment for the bond.
Beige Book
» The Beige Book is a report released by the Federal Reserve Board eight times each year. It is a general report on economic conditions
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