FAQs tagged as

Stock Market Terminology

  1. How do you trade put options on E*TRADE?

  2. Do you have to be an expert investor to trade put options?

  3. Are put options more difficult to trade than call options?

  4. How do hedge funds use short selling?

  5. How long can a trader keep a short position?

  6. Is short selling a form of insurance?

  7. What are the benefits and drawbacks of owning preferred stock and common stock?

  8. What is the simplest kind of company stock?

  9. When is it beneficial for underwriters to sell stock below the minimum rate?

  10. What is common stock and preferred stock?

  11. Are over-the-counter stocks different from other stocks?

  12. What assets are most risky and what assets are safest?

  13. How do regulators ensure that markets are conducted at arm's length?

  14. Are there any pure arm's-length markets?

  15. What is the difference between a short position and a short sale?

  16. Why would I need to know how many outstanding shares the shareholders have?

  17. Where do funds report their r-squared?

  18. What are some historical examples of the relative strength index (RSI)?

  19. How do quant traders build the relative strength index (RSI) into their algorithms?

  20. Are there any risks involved in trading put options through a traditional broker?

  21. What's the difference between primary and secondary capital markets?

  22. What are the components of shareholders' equity?

  23. What is the difference between the yield of stock and the yield of a bond?

  24. Why are bond yields calculated in terms of basis points?

  25. What is the difference between a company's outstanding shares and its float?

  26. What is the difference between authorized shares and outstanding shares?

  27. What kinds of restrictions does the SEC put on short selling?

  28. What is the difference between yield and dividend?

  29. What telecommunication stocks pay the highest dividends?

  30. What is the difference between market capitalization and equity?

  31. What is the first day of the first quarter?

  32. How do I use the dividend capture strategy?

  33. How do technical analysts interpret the Average Directional Index (ADI)?

  34. What are the differences between dilutive securities and antidilutive securities?

  35. Is the Dow Jones a public company?

  36. Is the Dow Jones a stock exchange?

  37. What do traders' hand signals mean on the trading floor?

  38. What's the difference between a market order and a limit order?

  39. What is the "percentage off the 52-week high or low"? How is this calculated?

  40. How much more will it cost me to buy an odd lot of shares?

  41. What does it mean when financial news reports say that more issues were sold than ...

  42. Why does after-hours trading (AHT) exist?

  43. What is the downtick-uptick rule on the NYSE?

  44. What is an odd-lot buyback?

  45. During what time does after-hours trading (AHT) occur?

  46. What is a stock ticker?

  47. Why are traders on the floor of the exchange?

  48. The “effective date” is defined as:

  49. What does "gather in the stops" mean?

  50. The "effective date" is defined as:

  51. Does a stock split lead to the gapping up/down of the stock?

  52. What are the "big uglies"?

  53. What do the numbers that follow the bid and ask numbers in stock quotes represent?

  54. What's the smallest number of shares of stock that I can buy?

  55. Why are the bid and ask quotes usually so far away from each other in after-hours ...

  56. What does it mean when someone says that a stock went up X points? Does this refer ...

  57. What is dead money?

  58. How do I calculate how much I've gained or lost on a stock holding?

  59. What are the "Dogs of the Dow"?

  60. What do T+1, T+2 and T+3 mean?

  61. What are defensive stocks?

  62. How does the ISIN numbering system work?

  63. How long does a stock that has done a reverse split keep the letter "D" at the end ...

  64. What exactly is a portfolio? Is it something I can carry around?

  65. What is a "daisy chain"?

  66. What is a CUSIP number?

  67. What are reverse stock splits?

  68. Does the closing price have to equal the last price traded?

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