Buy

Filed Under » ,
Dictionary Says

Definition of 'Buy'

1. A recommendation to purchase a specific security. A buy rating from an analyst or research firm is a recommendation to purchase the security, with the implied insistence that the security is undervalued in some fashion.

2. To acquire an asset in exchange for currency. An investor would buy shares of a company by exchanging money or some form of monetary value for the shares.
Investopedia Says

Investopedia explains 'Buy'

1. Exact definitions of a "buy" vary by brokerage, but in general a buy rating is better than neutral but worse than a strong buy, if the brokerage in question issues strong buy ratings. A sell rating on the other hand would be a recommendation to sell the security if currently held, and avoid purchasing it on the open market.

2. Like any buy-sell transaction, buying a security involves an active buyer and seller. While in most cases currency will be exchanged for the security, other forms of payment are also made, such as other securities or services.

Articles Of Interest

  1.

    Why There Are Few Sell Ratings On Wall Street

    We outline reasons that may show why enforcing more sell ratings isn't guaranteed to increase Wall Street's objectivity.

  2. Analyst Recommendations: Do Sell Ratings Exist?

    Analyst reports can be an investor's best friend - but without knowing how to read them, you won't be able to fully utilize them.

  3. Eight Items That Impact Daily Trades

    Find out which factors can help you squeeze more profit out of each position.

  4. The History Of Information Machines

    Discover how technology changed the way we exchange information when trading.

  5. What does "buy on the cannons, sell on the trumpets" mean?

    All the events and news that happen around the world can have a great impact on the stock market. Very often, if a war breaks out or political problems arise the stock market will take a plunge. ...

  6. Weighted Average Cost Of Capital (WACC)

    Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality

  7. What is a monopoly?

    Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when an industry or sector has only one producer of goods or retailer for ...

  8. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...

  9. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.

  10. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.

  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=96841daab87fe536ce6542778edf17a5