An acceptance market is based on short-term credit instruments typically used by exporters who prefer to get paid faster for their exported goods.

The term acceptance market refers to a contractual agreement involving the use of short-term credit as payment in international trade. The term acceptance market refers to a contractual agreement involving the use of short-term credit as payment in international trade. An acceptance market is a contractual agreement involving the use of short-term credit as payment in international trade. The short-term credit instrument is signed by a buyer indicating their intention to pay a specific sum of money to the seller or exporter by an agreed date. An acceptance market is a time draft or bill of exchange accepted as payment for goods and services.

Acceptance Market

Across the board is a term used by stock market watchers to describe a clear trend in which most stocks and sectors move in the same direction.

Across the board is a term used by stock market watchers to describe a market in which most stocks and stock sectors or moving in the same direction, up or down.
Such widespread movements are usually caused by economic or geopolitical news that is relevant to most or all sectors of the market. Across the board is a term used by stock market watchers to describe a market in which most stocks and stock sectors or moving in the same direction, up or down.
Such widespread movements are usually caused by economic or geopolitical news that is relevant to most or all sectors of the market. In addition to market-wide activity, the term is used often in the media to refer to strong stock performance for individual public companies. The term comes from the New York Stock Exchange (NYSE) Big Board, on which stock prices were written. The term may also refer to the collective economic performance across all categories of a single stock or a certain section of the broader economy.

Across the Board

The term actionable refers to a directive or strategy that can be accomplished in the near future.

The term "actionable" refers to a business directive or investment strategy that can feasibly be accomplished shortly. In an efficient market, stock prices would be determined primarily by fundamentals, which at the basic level, refers to a combination of two things: an earnings base, such as earnings per share (EPS), and a valuation multiple, such as a price-to-earnings (P/E) ratio.
Technical factors are the mix of external conditions that alter the supply of and demand for a company's stock. There are a number of factors that may affect when a business or investment decision is actionable, including fundamentals, technical factors, and market sentiment. The first comprises middle-aged investors; those who are peak earners who tend to invest in the stock market, and older investors, who tend to pull out of the market in order to meet the demands of retirement. Another time when investment decisions may move from proposed to actionable is when changes are made to short-term interest rates, or when major life transitions, such as changing jobs, buying a home, or retirement, are just around the corner.

Actionable

An affidavit of loss is a document declaring that a security certificate has been lost or destroyed.

An affidavit of loss is a document declaring the loss of a security usually through theft or destruction. An affidavit of loss is a document declaring that a security, such as a stock certificate, is lost or destroyed. An affidavit of loss is a document declaring the loss of a security usually through theft or destruction. If the record is stolen, misplaced, or destroyed, the owner is required to swear an affidavit pertaining to the loss of the item. The affidavit contains all the details regarding the loss, such as the owner's name and any information pertaining to the security.

Affidavit of Loss

The Alberta Investment Management Corporation is a government-owned investment-management corporation headquartered in Edmonton, Alberta, Canada.

The Alberta Investment Management Corporation (AIMCo) is a government-owned investment-management corporation headquartered in Edmonton, Alberta. Pension funds managed by AIMCo include but are not limited to the Local Authorities Pension Plan (LAPP), the Management Employees Pension Plan (MEPP), the Public Service Pension Plan (PSPP), and the Provincial Judges and Masters in Chambers Pension Plan. AIMCo manages a variety of different funds, including the Alberta Heritage Savings Trust Fund and Alberta government funds used to pay for public services such as infrastructure, social programs, and education. AIMCo seeks to maximize returns and minimize risk by using proxy voting rights on behalf of its clients; prioritizing the creation of positive changes in an asset corporation rather than immediately divesting of holdings; and publishing its Responsible Investment policies, including proxy voting record, activities, and guiding documents, online. As one of the largest institutional investors in the world, AIMCo manages a wide range of public sector pension funds, government funds, and endowments.

Alberta Investment Management Corporation (AIMCo)

Allocational efficiency is a characteristic of an efficient market where capital is assigned in a way that is most beneficial to the parties involved.

Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where capital is assigned in a way that is most beneficial to the parties involved. This is made possible when parties are able to use the accurate and readily available data reflected in the market to make decisions about how to utilize their resources.
When all of the data affecting a market is accessible, companies can make accurate decisions about what projects might be most profitable and manufacturers can concentrate on producing products that are most desired by the general population. An efficient market is one in which all pertinent data regarding the market and its activities is readily available to all market participants and is always reflected in market prices. When a market is informationally efficient, all necessary and pertinent information about the market is readily available to all parties involved in the market. Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where capital is assigned in a way that is most beneficial to the parties involved.

Allocational Efficiency

An auction market is where buyers and sellers enter competitive offers simultaneously; matching bids and offers are paired together and executed.

In an auction market, buyers enter competitive bids and sellers submit competitive offers at the same time. A double auction market is when a buyer’s price and a seller’s asking price match, and the trade proceeds at that price.
Auction markets do not involve direct negotiations between individual buyers and sellers, while negotiations occur for OTC trades.
The U.S. Treasury holds auctions, which are open to the public and large investment entities, to finance certain government financial activities.
An auction market also known as a double auction market, allows buyers and sellers to submit prices they deem acceptable to a list. The price at which a stock trades represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. The price at which a stock trades represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. Most traditional auctions involve multiple potential buyers or bidders, but only a single seller, whereas auction markets for securities have multiple buyers and multiple sellers, all looking to make deals simultaneously.

Auction Market

Backing away is failure by a market maker in a security to honor the quoted bid and ask prices for a minimum quantity. 

Another might be if the market maker is in the process of filling an order and changes the stock price before it is, or should reasonably be, aware that another order has been placed; it does not have to fill the new order at the old price. When a market maker backs away from a quoted price, the impact results in the investor buying at a higher price or selling at a lower price than quoted. This violates the firm-quote rules established by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and other regulatory bodies that require market makers to execute orders at their displayed quotation, and could result in disciplinary action. FINRA does not pursue immediate disciplinary action for an individual backing-away complaint where a contemporaneous trade execution from the market maker is obtained or offered.

Backing Away

A black swan is an event that is rare, very important, and is both difficult to have predicted but is considered obvious in hindsight.

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Taleb argued that because black swan events are impossible to predict due to their extreme rarity, yet have catastrophic consequences, it is important for people to always assume a black swan event is a possibility, whatever it may be, and to try to plan accordingly. Taleb later used the 2008 financial crisis and the idea of black swan events to argue that if a broken system is allowed to fail, it actually strengthens it against the catastrophe of future black swan events. Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event. Taleb describes a black swan as an event that 1) is so rare that even the possibility that it might occur is unknown, 2) has a catastrophic impact when it does occur, and 3) is explained in hindsight as if it were actually predictable.

Black Swan : Events & Theories

A blockholder is the owner of a large block of a company's shares and/or bonds. 

A blockholder is the owner of a large block of a company's shares and/or bonds. Due to the large number of shares held, blockholders can influence the direction of a company through exercising its voting rights and threats to sell their shares, negatively impacting the price. Most common shares come with voting rights, giving the shareholder the right to vote on certain aspects of the company. Large blockholders like Warren Buffett and Berkshire Hathaway often praise company management or support company decisions helping to boost its share price. In many cases, shareholders may accumulate more shares to increase their voting rights and voice concerns about problems they see with the company.

Blockholder

A bubble is an economic cycle that is characterized by a rapid economic expansion followed by a contraction.

A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. The dot-com boom, also called the dot-com bubble, was a stock market bubble in the late 1990s. During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset's intrinsic value (the price does not align with the fundamentals of the asset). During the dot-com boom, people bought technology stocks at high prices—believing they could sell them at a higher price—until confidence was lost and a large market correction occurred. A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets.

Bubble

The bull/bear ratio is a market-sentiment indicator that polls the the views of professional market participants on a weekly basis.

he bull/bear ratio (sometimes known as the bull-bear spread) is a market-sentiment indicator published weekly by the financial data provider Investors Intelligence, which uses information polled directly from market professionals. he bull/bear ratio (sometimes known as the bull-bear spread) is a market-sentiment indicator published weekly by the financial data provider Investors Intelligence, which uses information polled directly from market professionals. As the bull/bear ratio rises and falls, it indicates the portion of the investment community that is bullish (or expecting the market to go up), versus the portion that is bearish (or expecting the market to fall). Bull/Bear Ratio \= Bullish Investment Advisors Bearish Investment Advisors \\begin{aligned} &\\text{Bull/Bear Ratio} = \\frac { \\text{Bullish Investment Advisors} }{ \\text{Bearish Investment Advisors} } \\\\ \\end{aligned} ​Bull/Bear Ratio\=Bearish Investment AdvisorsBullish Investment Advisors​​
Extreme reading on either the bullish or bearish sides can be used as contrarian signals. In broad terms, rising prices indicate bullish market sentiment, while falling prices indicate bearish market sentiment.

Bull/Bear Ratio

A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market.

A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. In more generic terms, a centralized market refers to a specialized financial market that is structured in such a way that all orders, whether they be buy or sell orders, are routed through a central exchange that has no other competing market for those particular financial instruments. A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. In opposition to the centralized market model, decentralized markets are growing in step with the evolution of computer technology that is giving people the ability to participate in online commerce without the benefit of a centralized market.

Centralized Market

A choice market is a market in which the spread between the bid and the ask for a given financial instrument is zero.

A choice market is a market in which the bid-ask spread for a given financial instrument is zero. While some assert that a repeal of the ban on locked markets would eliminate many order types and make the market less complex, others argue that a repeal of the ban would lead to more crossed markets or markets in which bid prices are lower than asking prices. The Securities and Exchange Commission (SEC) considers a choice or locked market to violate fair and orderly market rules, which requires that buyers and sellers receive the next and best available prices when trading securities. A choice market, also called a locked market, is an unusual and typically short-term occurrence, as there is typically a spread between the bid price and ask. A choice market is a market in which the bid-ask spread for a given financial instrument is zero.

Choice Market

A composite index is a statistical tool that groups together many different equities or securities. Composite indexes are intended to provide a relative measure of the performance of the market or a specific market sector over time.

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A composite index is a statistical tool that groups together many different equities, securities, or indexes in order to create a representation of overall market or sector performance. A stock with a higher price will be given more weight than a stock with a lower price, and will thus have a greater say in the index’s performance:
Stock A: price equals $3
Stock B: price equals $6 The goal of a well-diversified portfolio is usually to outperform the main composite indexes—the Nasdaq Composite, the Dow, and the S&P 500.
Composite indexes are created to conduct investment analysis, measure economic trends, and forecast market activity.
They are also used as tools for tracking securities' price changes relative to an entire stock market or sector. The Nasdaq Composite is calculated using a market capitalization (market cap)-weighted methodology (also referred to as a cap-weighted methodology).
The Standard & Poor's 500 Index (S&P 500) is widely regarded as the best barometer of large U.S. equities. It contains the 500 largest, U.S. publicly-traded companies by market value.﻿﻿ For a stock to arrive at a cap-weighted index's total market capitalization, the price per share of each company is multiplied by its total number of shares outstanding:

Composite Index

In investing, a concession is a selling group's compensation in a stock or bond underwriting agreement. Discover more about concessions here.

A concession—also known as a selling concession—is the compensation a selling group receives as part of a stock or bond underwriting agreement. In the case where an underwriter is managing the sale of a new issue for a company, the amount of compensation the underwriter will receive will be detailed in the concession agreement. Another type of concession is a real estate concession, which is an agreement between a buyer and a seller to adjust the price or other terms of the sale based on a new condition, such as a home inspection that reveals the need for costly repairs. In finance, a concession refers to the compensation an underwriter receives for managing the sale of stocks or bonds for a company. A concession—also known as a selling concession—is the compensation a selling group receives as part of a stock or bond underwriting agreement.

Concession

A crash is a sudden and significant decline in the value of a market. A crash is most often associated with an inflated stock market. 

Something the Dow did in 1954 could point to a big tech rally ahead

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A crash is a sudden and significant decline in the value of a market. A crash is most often associated with an inflated stock market, though any market can crash, for example, the international oil market in 2016. A market crash can happen in any market, including bond markets and commodities markets, but they are most often associated with stock markets. A crash can be caused by economic conditions, like the unwinding of too much leverage within a market, and by panic, which is when a market that is moving downward starts to induce fear in participants who want to sell at any cost. In 1987, the U.S. stock market had been in a bull market for five years.

Crash

A defensive company is a corporation whose sales and earnings remain relatively stable during both economic upturns and downturns. 

A defensive company is a corporation whose sales and earnings remain relatively stable during both economic upturns and downturns. Employees of defensive companies have the same opportunities for promotions and higher salaries as employees of other large companies. More importantly for long-term stock investors, defensive companies are less likely to go bankrupt because of their relative strength during recessions. The relative outperformance of defensive companies during economic downturns forms the basis of sector rotation strategies. One can speak of defensive industries as well as defensive firms.

Defensive Company

A defined portfolio is an investment trust that invests in a predefined portfolio of bonds or stocks chosen by the fund company.

A defined portfolio is an investment trust that invests in a predefined set of bonds, stocks, or both that have been selected by the fund company. A defined portfolio, or an investment trust, is an already defined group of bonds, stocks, or a combination of the two, that have been selected by the trust.
The trust's investments are closed-ended and not actively managed, similar to certain mutual funds. Like other portfolio types, a defined portfolio is a collection of financial assets such as stocks, bonds, commodities, currencies, cash equivalents, and their fund counterparts, including mutual, exchange-traded, and closed funds. An investment portfolio is divided into segments of varying sizes, representing a variety of asset classes and types of investment to accomplish an appropriate risk-return portfolio allocation. Many different types of securities can be used to build a diversified portfolio, but stocks, bonds, and cash are generally considered a portfolio's core building blocks.

Defined Portfolio

A demand shock is a sudden change in the demand for goods or services given the same supply.

A demand shock is a sudden unexpected event that dramatically increases or decreases demand for a product or service, usually temporarily. A positive demand shock is a sudden increase in demand, while a negative demand shock is a decrease in demand. A demand shock is a large but transitory disruption of the market price for a product or service, caused by an unexpected event that changes the perception and demand. A demand shock is a sudden unexpected event that dramatically increases or decreases demand for a product or service, usually temporarily. A demand shock may be contrasted with a supply shock, which is a sudden change in the supply of a product or service that causes an observable economic effect.

Demand Shock

Direct market access refers to access to the electronic facilities and order books of financial market exchanges that facilitate daily securities transactions.

Direct market access (DMA) refers to access to the electronic facilities and order books of financial market exchanges that facilitate daily securities transactions. In the financial markets, sell-side firms offer their direct market access trading platforms and technology to buy-side firms who wish to control the direct market access trading activities for their investment portfolios. If a buy-side firm does not have direct market access, then it must partner with a sell-side firm, brokerage, or bank with direct market access to determine a trading price and execute the final transaction. Direct market access describes the direct access to the electronic facilities and order books of the financial market exchanges in order to execute trades. Direct market access is the direct connection to financial market exchanges that makes the completion of a financial market transaction final.

Direct Market Access (DMA)

A downswing is a decline in business activity that results from changes in the business cycle or broader economic pressure.

Stock Market Briefing: S&P 500 Bull & Bear Market Tables

A downswing is a downward turn in the level of economic or business activity, often caused by fluctuations in the business cycle or other macroeconomic events. But if the downswing gains momentum and the prices of securities continue to fall, it can be a signifier that a market is entering a bear market. A downswing is a period of poor market performance, or stock performance, following a period of steady or increasing prices. Investors with decreased confidence in the performance of the market will be tempted to sell to prevent continued losses, and those looking to buy will speculate on the best price before the security or the market begins an upswing again. A downswing is a buzzword that investors use to describe poor market performance, indicating a downward turn in an economic cycle.

Downswing

In investing, an either-way market describes a situation where there is roughly an equal chance for a market to move up as it is for it to move down.

When an either-way market continues for an extended time, it may take on the characteristics of a coiled market, referring to the strong movement the market will make once it breaks out of its sideways pattern.
An either-way market generally describes sideways price action or consolidation. This sideways movement creates what appears to be an either-way market, in which shares can break out either to the upside or downside.
Generally, the longer the period of consolidation, the more movement potential technical analysts see once the stock eventually breaks out from the sideways pattern. During these types of market conditions, traders will look for tools or trading strategies that will help them discern which way the either-way market will eventually head. An either-way market refers to situations where there appears to be a roughly equal chance for a market to move up as there is for the market to move down.

Either-Way Market

Equity market capitalization is a calculation that measures the total value of the equity market.

Equity market capitalization is an aggregate calculation that measures the total value of the entire equity market. Because of these factors, equity market capitalization, which is a composite sum of all the market caps of all equities in a market, is not a good measure for ascertaining the value of an equity market; only the size. The measure is also used to compare the value of the equity market relative to the values of markets of other asset classes, such as the bond market or other segments of the economy, including the value of the real estate market. This value is calculated by taking the individual market capitalizations of all available companies in the equity market and adding them together to arrive at the capitalization for the market as a whole. Shares are often overvalued or undervalued by the market, which means that the market price only determines how much the market is willing to pay for a company's shares.

Equity Market Capitalization

Euroclear is one of two principal clearing houses for securities traded in the Euromarket and specializes in verifying information supplied by brokers involved in a securities transaction and the settlement of securities. 

Clearstream Banking Luxembourg Customer Handbook

Self-Regulatory Organizations; Morgan Guaranty Trust Company, Brussels Office, as Operator of the Euroclear System and Euroclear Bank, S.A.; Order Approving Application to Modify an Existing Exemption from Clearing Agency Registration

Table of Contents
What Is Euroclear? Euroclear specializes in verifying information supplied by brokers involved in a securities transaction and the settlement of securities transacted on European exchanges. As a rule, Euroclear Bank credits securities to participants only if it has actually received the securities for the account of such participants. In addition to its role as an International Central Securities Depository (ICSD), Euroclear also acts as the Central Securities Depository (CSD) for Belgian, Dutch, Finnish, French, Irish, Swedish, and UK securities. Between 2001 and 2007, the firm acquired Sivocam, the central securities depository (CSD) of France, CIK and Necigef, the CSDs of Belgium and the Netherlands, and CrestCo, the CSD for Irish equities and all U.K. securities.

Euroclear

The term Euromarket can refer to either the financial market for eurocurrencies or the single market for goods and services trade between EU members.

In commerce, it refers to the single market of the European Union (EU) in which goods and services are freely traded between member countries, and which have a common trade policy with non-EU countries. Bank B makes interest from the loan they offer to Bank A, whereas Bank A profits from the difference in the loan terms between their client and the loan terms offered from Bank B. The euromarket may refer to the single market and free-trade among European Union (EU) countries. The euromarket may also refer to the eurocurrencies market, where an institution uses money from another country, but not in the originating country's home market.

What Is the Euromarket?

A fast market is a condition officially declared by a stock exchange during unusually high levels of volatility, combined with unusually heavy trading.

A fast market is a market condition that will be officially declared by a stock market exchange when the financial markets are experiencing unusually high levels of volatility combined with unusually heavy trading. The criteria for triggering a market-wide trading halt are as follows:
7% decline in the S&P 500 before 3:35 p.m.: If the S&P 500 falls 7 percent from the previous session’s close before 3:25 p.m. ET, all stock-market trading halts for 15 minutes.
13% decline A fast market is a market condition that will be officially declared by a stock market exchange when the financial markets are experiencing unusually high levels of volatility combined with unusually heavy trading. While early circuit-breakers used the Dow Jones Industrial Average as a benchmark, it is now the S&P 500 that determines whether trading will stop if a market starts moving too fast. A fast market is when the financial markets are experiencing unusually high levels of volatility combined with unusually heavy trading.

Fast Market

Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market and bond markets, among others.

Table of Contents
What Are Financial Markets?
Understanding Financial Markets
Types of Financial Markets
Examples of Financial Markets
Financial Markets FAQs Financial markets can also be broken down into capital markets, money markets, primary vs. secondary markets, and listed vs. OTC markets. Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Firms use stock and bond markets to raise capital from investors; speculators look to various asset classes to make directional bets on future prices; hedgers use derivatives markets to mitigate various risks, and arbitrageurs seek to take advantage of mispricings or anomalies observed across various markets. Some examples of financial markets and their roles include the stock market, the bond market, forex, commodities, and the real estate market, among several others.

Financial Markets

Flight to liquidity signifies a mass movement by investors toward liquid securities in anticipation of a period of market uncertainty.

Flight to liquidity happens when investors attempt to liquidate positions in inactive or illiquid assets and purchase positions in more liquid assets. Flight to liquidity happens when investors attempt to liquidate positions in inactive or illiquid assets and purchase positions in more liquid assets. Flight to liquidity happens when investors attempt to liquidate positions in inactive or illiquid assets and purchase positions in more liquid assets. As investors grow increasingly concerned that markets may decline, they seek positions in more liquid securities in order to increase their ability to sell their positions on a moment's notice. As investors grow concerned that markets may decline, they seek positions in more liquid securities in order to increase their ability to sell their positions quickly.

Flight To Liquidity

Froth refers to market conditions preceding an actual market bubble, where asset prices become detached from their underlying intrinsic values.

Froth refers to market conditions preceding an actual market bubble, where asset prices become detached from their underlying intrinsic values as demand for those assets drives their prices to unsustainable levels. A frothy market is characterized by overconfident investors that ignore market fundamentals and bid up an asset's price beyond the asset's quantitative worth. A frothy market is one where investors begin to ignore market fundamentals and bid up an asset's price beyond what the asset is objectively worth. A frothy market can be the precursor to a market bubble, which may lead to a severe contraction of asset prices, also known as a crash or burst bubble.

Froth

Fully subscribed means an underwriting firm has successfully sold all of its available issues of a public offering of securities to investors. 

Fully subscribed is the position a company finds itself in once all the shares of its initial bond or stock offering have been purchased or guaranteed by investors. A fully subscribed offering prevents a company from having shares left over that they cannot sell after they go public, or shares that must undergo a price reduction to be purchased by investors. Fully subscribed is the position a company finds itself in once all the shares of its initial bond or stock offering have been purchased or guaranteed by investors. Fully subscribed is the position a company finds itself in once all the shares of its initial bond or stock offering have been purchased or guaranteed by investors. It prevents a company from having shares left over that they cannot sell after they go public, or shares that must undergo a price reduction to be purchased by investors.

Fully Subscribed

A graveyard market reflects prolonged bearish sentiment. Existing investors want to get out of the market and new investors do not want to get in. 

A graveyard market is one in which bearish sentiment persists, causing existing investors to sell and new investors to stay on the sidelines. Lastly, a CAPE ratio that turns higher from an extreme low can help to gauge the end of a graveyard market. A graveyard market reflects huge declines in the market over many months, if not years. Conversely, a CAPE ratio that falls for a considerable time tends to indicate a graveyard market. The CAPE ratio smooths fluctuations in market P/Es that are the result of boom and bust economic cycles.

Graveyard Market

A grinder is a slang term for a an investor who consistently earns small profits, making several small trades.

A grinder is a slang term for a person who works in the investment industry and makes only small amounts of money at a time on small investments, over and over again. A grinder is a slang term for a person who works in the investment industry and makes only small amounts of money at a time on small investments, over and over again. While the term implies a high level of effort to achieve a satisfactory return, a grinder rarely is inclined to work on larger trades for larger yields. In contrast, a grinder focuses on making a large quantity of smaller trades, compensating for the lower returns of each individual trade by conducting them in large volumes. This increase in required effort also applies to the use of the term grinder regardless of the level of success the grinder experiences.

Grinder

A hedging transaction is a position that an investor enters to offset the risks related to another position they hold. 

A hedging transaction is a tactical action that an investor takes with the intent of reducing the risk of losing money (or experiencing a shortfall) while executing their investment strategy. If company A is worried about currency fluctuations affecting the value of the contract when the money actually comes in and is converted to company A's domestic currency, they can enter a hedging transaction through the foreign exchange market, taking up offsetting positions that minimize the currency risk. A hedging transaction is a tactical action that an investor takes with the intent of reducing the risk of losing money (or experiencing a shortfall) while executing their investment strategy. A hedging transaction is a tactical action that an investor takes with the intent of reducing the risk of losing money (or experiencing a shortfall) while executing their investment strategy. One problem with thinking of hedging transactions strictly as insurance is that, unlike insurance, there exists a third possibility often unaccounted for by inexperienced investors, namely, that the investment rises in value, but by only a small amount.

Hedging Transaction

A horizontal market is diversified and broad-based, catering to several market segments.

In other words, those they sell to are usually businesses that compete against one another.
Horizontal Markets
Defined by a demographic feature that applies to different kinds of businesses
Broader than vertical markets
Usually cooperative and seeking joint opportunities
An opportunity to market to a general audience
Vertical Markets
A group of businesses that share the same industry
Always specific and cannot cross industries
Often competing against each other
An opportunity to market to a specific audience Conglomerates, who operate in several market segments and attract a broad customer base are examples of operating in a horizontal market. Vertical markets are the opposite of horizontal markets in that they focus on a very niche sector or demographic. Although the types of markets have clear differences, a business's operations can often be characterized as serving both horizontal and vertical markets at the same time.

Horizontal Market

An inefficient market, according to economic theory, is one where prices do not reflect all information available.

According to economic theory, an inefficient market is one in which an asset's prices do not accurately reflect its true value, which may occur for several reasons. The efficient market hypothesis (EMH) holds that in an efficiently working market, asset prices always accurately reflect the asset's true value. If one investor looks for undervalued market opportunities while another evaluates a stock on the basis of its growth potential, these two investors will already have arrived at a different assessment of the stock's fair market value. If the market were entirely efficient, these opportunities and threats would not exist for any reasonable length of time, since market prices would quickly move to match a security's true value as it changed. While many financial markets appear reasonably efficient, events such as market-wide crashes and the dotcom bubble of the late '90s seem to reveal some sort of market inefficiency.

Inefficient Market

An interdealer market is a trading market that is typically only accessible by banks and financial institutions.

An interdealer market is a trading market that is typically accessible only by banks and financial institutions. An interdealer market is an over-the-counter (OTC) market that is not restricted to a physical location, nor does it have a centralized exchange or market maker. While some interdealer markets may post execution prices and trade sizes after the deal is done, other market participants may not have access to this information at all, and even when they do, those rates are not available to everyone equally, as they are in exchange markets. Neither are certain participants in an interdealer market designated as dedicated market makers, as they are in exchange markets. Customers of interdealer markets tend to be banks and financial institutions, corporations, hedge funds, institutional investors, and asset managers interested in OTC derivatives, Treasury bonds, or other wholesale-market securities.

Interdealer Market

An intrastate offering is a securities offering that can only be purchased in the state in which it is being issued. 

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In the United States, an intrastate offering is a securities offering that can only be purchased in the state in which it is being issued. Because the offering only includes one state, it does not fall under the jurisdiction of the Securities and Exchange Commission (SEC).
While the offering does not need to be registered with the SEC, it does need to comply with state securities laws and regulations in the states in which the securities are offered or sold.
In order to be exempt from SEC regulations, intrastate offerings must meet the following requirements:
It must be sold and offered only to residents of the state in which it is issued;
The issuing company must be registered in that state;
The company must do a significant amount of business in the state; and
The resale of securities into other states cannot take place within six months of their initial sale.
Some companies choose this type of issue because it is less expensive than registering an offering with the SEC. Issuers of intrastate offerings must ensure that the buyers of their securities are residents of the state in which they are offering the securities in order to be exempt from SEC filing requirements. In the United States, an intrastate offering is a securities offering that can only be purchased in the state in which it is being issued. In the United States, an intrastate offering is a securities offering that can only be purchased in the state in which it is being issued.

Intrastate Offering

Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify.

Remarks by Chairman Alan Greenspan (12/5/96)

Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify. The term was popularized by former Fed chair Alan Greenspan in a 1996 speech addressing the burgeoning internet bubble in the stock market. Irrational exuberance has become synonymous with the creation of inflated asset prices associated with bubbles, which ultimately pop and can lead to market panic. Alan Greenspan raised the question of whether central banks should address irrational exuberance via a preemptive tight monetary policy. When investors start believing that the rise in prices in the recent past predicts the future, they are acting as if there is no uncertainty in the market, causing a positive feedback loop of ever-higher prices.

Irrational Exuberance

A job market is a market in which employers search for employees and employees search for jobs. It alludes to the competition and interplay between different labor forces.

Annual Estimates of Unemployment in the United States, 1900-1954

The job market is the market in which employers search for employees and employees search for jobs. The job market is the market in which employers search for employees and employees search for jobs. The job market is directly related to the unemployment rate—a measure of the percentage of people who aren't employed but actively seeking work. The higher the unemployment rate, the greater the supply of labor in the overall job market. The job market can grow or shrink depending on the demand for labor and the available supply of workers within the overall economy.

Job Market

Kicking the tires is a slang term when considering an investment using only minimal research or analysis.

Kicking the tires is a colloquial expression that refers to performing minimal research into an investment, as opposed to conducting a thorough and rigorous analysis. For example, someone thinking about putting money in a hedge fund starts kicking the tires by reading advertising material provided by the investment management company but does not yet look up the investment manager’s disciplinary history on the FINRA web site. Kicking the tires also applies to a broad range of investments, such as stocks bonds, mutual funds, hedge funds, closed-end funds, money markets, certificates of deposit, and even private-equity and real estate investments. At times, investors who start by kicking the tires continue on to more rigorous analysis that leads to interesting finds, either within their normal investment universe, or sometimes outside of where they normally look for ideas. Kicking the tires can nonetheless be a valid strategy as it cuts down on time and effort in conducting research by performing some cursory analysis, but can also lead investors astray with incomplete or wrong conclusions.

Kicking The Tires

A type of economic recession and recovery that resembles an "L" shape in charting. 

The Depression of the 1930's and Its Origins or Causes

Japan’s Lost Decade: Lessons for Other Economies

Coronavirus stimulus just pushed Fed’s balance sheet past $5 trillion for the first time ever

H.R. 1 (111th): American Recovery and Reinvestment Act of 2009

An L-shaped recovery is a type of recovery characterized by a slow rate of recovery, with persistent unemployment and stagnant economic growth. An L-shaped recovery is a type of recovery characterized by a slow rate of recovery, with persistent unemployment and stagnant economic growth. A common thread in L-shaped recoveries is a massive fiscal and monetary policy response to the preceding recession, which may slow down the economy’s recovery process. L-shaped recoveries are characterized by persistently high unemployment, a slow return of businesses investment activity, and a sluggish rate of growth in economic output, and are associated with some of the worst economic episodes through history. An L-shaped recovery is when, after a steep recession, the economy experiences a slow rate of recover, which resembles the shape of the letter “L” when charted as a line graph.

L-Shaped Recovery

In a liquidating market, a large group of investors initiate the sale of their securities in one market at the same time. 

A liquidating market is a type of securities market in which there is broad-based selling of most securities at the same time, giving the effect of low and decreasing prices on most securities while selling volumes remain high. A liquidating market is a type of securities market in which there is broad-based selling of most securities at the same time, giving the effect of low and decreasing prices on most securities while selling volumes remain high. A liquidating market is one in which the majority of investors are leaving or selling off the securities they own which are traded in that market, so that overall there is a general liquidation of securities in one market. In this case, observers could call the real estate market a liquidating market, as most of the market's participants are chiefly interested in liquidating their assets into cash at that time. A liquidating market is one where many market participants are trying to sell their holdings at the same time.

Liquidating Market

A market proxy is a broad representation of the overall market which can be the basis for an index fund or statistical studies.

State Street S&P 500 Index Fund - Class N

Vanguard 500 Index Fund Investor Shares (VFINX)

The Shift from Active to Passive Investing: Potential Risks to Financial Stability

A market proxy is a broad representation of the overall stock market. These funds have created passive vehicles based on the S&P 500 index and many other proxies representing the international stock market, the global stock market (U.S. + international), and segments of the stock market such as large-capitalization stocks, medium-cap stocks, and small-cap stocks. The S&P 500 index is a broad proxy of the stock market based on a market capitalization of 500 large companies traded on the New York Stock Exchange (NYSE) and Nasdaq stock exchange.﻿﻿ Market capitalization–or market cap for short–multiplies the company's stock price by its outstanding equity shares. Indexed products have historically outperformed actively-managed funds, but there is a growing debate about whether they have become too large to serve the needs of investors effectively.﻿﻿ In the event of heavy or sustained market downturns, for instance, there's a concern of how well passive funds will perform relative to actively-managed funds that have the flexibility to respond to changing market conditions. Although there is no equivalent market proxy for the bond market as comprehensive as the S&P 500 Index, informal references are made to dividend stocks being a proxy for bonds.

What Is a Market Proxy?

Market cycles include four phases of market growth and decline, which is driven by business and economic conditions.

Market cycles, also known as stock market cycles, is a wide term referring to trends or patterns that emerge during different markets or business environments. 1.  Accumulation Phase: Accumulation occurs after the market has bottomed and the innovators and early adopters begin to buy, figuring the worst is over.
2.  Markup Phase: This occurs when the market has been stable for a while and moves higher in price.
3.  Distribution Phase: Sellers begin to dominate as the stock reaches its peak.
4.  Downtrend: Downtrend occurs when the stock price is tumbling down. A market cycle can range anywhere from a few minutes to many years, depending on the market in question, as there are many markets to look at, and the time horizon which is being analyzed. Different careers will look at different aspects of the range. Market cycles, also known as stock market cycles, is a wide term referring to trends or patterns that emerge during different markets or business environments. At different stages of a full market cycle, different securities will respond to market forces differently.

Market Cycles

Market swoon is a buzzword for dramatic, sudden decline in the overall value of the stock market. 

Market swoon is a buzzword for a dramatic, sudden decline in the overall value of the stock market. A downturn can be characterized as a downswing, a market correction, a market swoon, or a bear market. Typically, such investors will cease trading or liquidate assets in response, which leads to market swoon, lowering security prices across the market. A swoon does not necessarily indicate the beginning of a bear market, but it is more dramatic than the kind of downturn that signals a market correction. A broader event than a downtick or a downswing, a market swoon refers to the behavior of a market as a whole.

Market Swoon

A market average is an estimation of the price levels in a given market.

A market average is an indexed measure of the overall price level of a given market, as defined by a specified group of stocks or other securities. For example, the Dow Jones Industrial Average (DJIA), which is a price-weighted average, covers 30 blue-chip stocks listed on the NYSE and is widely used to track overall U.S. stock market performance. The DJIA has been trading in the 20,000s for several years but few stocks ever trade in dollars of that magnitude, even if you added all 30 of them together.
What makes the Dow a five-digit number is that its denominator is adjusted for stock splits, and there have been a lot since the Dow 30 was established in 1928. A market average is an indexed measure of the overall price level of a given market, as defined by a specified group of stocks or other securities. A market average is a way to get an indexed measure of the average price levels in a market.

Market Average

Market depth is the market's ability to sustain relatively large market orders without impacting the price of the security.

Market depth refers to a market's ability to absorb relatively large market orders without significantly impacting the price of the security. For example, a trader may use market depth data to understand the bid-ask spread for a security, along with the volume accumulating above both figures.
Securities with strong market depth will usually have strong volume and be quite liquid, allowing traders to place large orders without significantly affecting the market price. Market depth, or depth of market (DOM), is closely related to liquidity and volume within a security, but does not imply that every stock showing a high trade volume has good market depth. It is the amount that will be traded for a limit order with a given price—if it is not limited by size—or the least favorable price that will be obtained by a market order with a given size—or a limit order that is limited by size and not price. Typically, the more buy and sell orders that exist, the greater the depth of the market—provided that those orders are dispersed fairly evenly around the current market price of that security.

Market Depth

A market disruption occurs when prices temporarily fail to reflect an equilibrium value based on supply and demand.

A market disruption is a situation wherein markets cease to function in a regular manner, typically characterized by rapid and large market declines. As the underlying issues became more publicly known, it led to a market disruption in the form of the Great Recession and the subsequent stock market crash that erased some $16 trillion of net worth from U.S. households. Following the 1987 market crash, systems were put in place to minimize the risks associated with market disruptions, including circuit breakers and price limits. A market disruption is a situation wherein markets cease to function in a regular manner, typically characterized by rapid and large market declines. A market disruption is an example of a an inefficiency and is also known as a market failure.

Market Disruption

A market index is a hypothetical portfolio representing a segment of the financial market. Popular indexes include the Dow Jones, S&P 500, and Nasdaq.

Dow Jones Industrial Average First Published

2020 Prospectus - iShares Global Clean Energy ETF

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

A market index is a hypothetical portfolio of investment holdings that represents a segment of the financial market. Some of the market’s leading indexes include:
Dow Jones Industrial Average
Nasdaq Composite
Russell 1000
S&P MidCap 400
Russell Midcap
Russell 2000
U.S. Aggregate Bond Market
Global Aggregate Bond Market
Investors often choose to use index investing over individual stock holdings in a diversified portfolio. In the bond market, Bloomberg Barclays is a leading provider of market indexes with the Bloomberg Barclays U.S. Aggregate Bond Index serving as one of the most popular proxies for U.S. bonds.﻿﻿ Investors cannot invest directly in an index, so these portfolios are used broadly as benchmarks or for developing index funds. Some popular emerging growth indexes and corresponding exchange traded funds (ETFs) include the following:
The iShares Global Clean Energy ETF (ICLN), which tracks the S&P Global Clean Energy Index
The Reality Shares Nasdaq NexGen Economy ETF (BLCN), which tracks the Reality Shares Nasdaq Blockchain Economy Index
The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT), which tracks the Nasdaq CTA Artificial Intelligence and Robotics Index The three most popular stock indexes for tracking the performance of the U.S. market are the Dow Jones Industrial Average (DJIA), S&P 500 Index and Nasdaq Composite Index.

Market Index

Market makers compete for customer order flow by displaying buy and sell quotations for a guaranteed number of shares.

Trade Execution: Rules Your Brokerage Firm Must Follow

Table of Contents
What Is a Market Maker?
Understanding Market Makers
How Market Makers Earn Profits
Market Makers vs. Specialists A market maker participates in the securities market by providing trading services for investors and boosting liquidity in the market. Example
The term market maker refers to a firm or individual who actively quotes two-sided markets in a particular security, providing bids and offers (known as asks) along with the market size of each. In some cases, exchanges like the NYSE use a specialist system where a specialist is the sole market maker who makes all the bids and asks that are visible to the market. While brokers compete against one another, specialists post bids and asks and ensure they are reported accurately.
Many market makers are often brokerage houses that provide trading services for investors in an effort to keep financial markets liquid.

Market Maker

Market maven is a slang term used to describe an investor who is "in-the-know", meaning that they are well-versed on the current state of the market and privy to information.

Market maven is a slang term used to describe an investor who is "in-the-know", meaning that they are well-versed on the current state of the market and privy to information that the general public may not have access to. Buffett, Bogle, and Soros are the market mavens when it comes to questions of investment, the global economy, and even particular financial instruments, but there are more specialized market mavens in every sector of the economy from oil and gas to biotech. The term market maven usually refers to an individual who is a market participant with a great deal of knowledge and connections, thus having a trusted opinion on market events or the likelihood of success of a particular investment or speculation. These consumer market mavens follow the same path of financial market mavens in becoming a trusted source of advice and a featured face for the media to use in stories about their product niche. These market mavens establish a track record for seemingly prescient investments or, in the case of analysts, accurate market calls and become a favorite source for the financial media in their particular field of expertise.

Market Maven

Market psychology refers to the prevailing sentiment of investors at any given time and can impact market direction regardless of the fundamentals.

The General Theory of Employment, Interest, and Money

Market psychology refers to the prevailing behaviors and aggregate sentiment of market actors at any point in time. Market psychology describes the overall behavior of a market based on emotional and cognitive factors on net and should not be confused with trader psychology, which refers to the same factors but that affect just a single individual. Market psychology is the consensus sentiment of the market as a whole based on the aggregate of individual market participants. Conventional financial theory, namely the efficient market hypothesis (EMH), is criticized as not accounting adequately for market psychology. Conventional financial theory assumed that prices were always based on rational considerations and failed to account for the potentially irrational impact of market psychology.

Market Psychology

The middle market characterizes American businesses with revenues in the $10 million to $1 billion range. 

Credit and Capital Formation : A Report to the President's Interagency Task Force on Women Business Owners

Investment Company Registration and Regulation Package

Investor Bulletin: Publicly Traded Business Development Companies (BDCs)

Table of Contents
What Is the Middle Market?
Understanding the Middle Market
Characteristics of the Middle Market
Challenges for the Middle Market
 Although middle market lenders, including boutique investment and commercial banks, aggressively compete for the business of the middle market, larger businesses enjoy the advantage of economies of scale. If the U.S. middle market was a country, its gross domestic product (GDP) would rank it as the fourth-largest economy in the world!
There is no universally accepted definition of the middle market. Note that middle market companies are not usually considered big enough to be mid-cap stocks, which are defined as having a market capitalization valued between $2 billion and $10 billion. The lack of a clear delineation can result in some gray areas when attempts are made to group businesses by the classic three-level approach that includes small business, middle market business, and big business.

Middle Market

A national currency is a legal tender issued by a central bank or monetary authority that we use to exchange goods and services. 

A national currency is a legal tender issued by a country's central bank or monetary authority. Examples of countries that make use of another country's currency are parts of Latin America, regions like Ecuador and El Salvador, which recognize and accept the U.S. dollar for the exchange of goods and services. Examples of countries that make use of another country's currency are parts of Latin America, regions like Ecuador and El Salvador, which recognize and accept the U.S. dollar for the exchange of goods and services. A national currency, such as the U.S. dollar, the Euro, and the Japanese Yen (JPY), is recognized as the world's most widely accepted type of currency. A national currency is a currency issued by a government's central bank or monetary authority.

National Currency

A negotiated market is a type of secondary market exchange in which the prices of each security are bargained out between buyers and sellers. 

A negotiated market is a type of secondary market exchange in which the prices of each security are bargained out between buyers and sellers. Chicago broker: 20 bid and 20.75 asked
Buyer broker: What is the size of your market?
Chicago broker: 300 shared either way (buy or sell)
Buyer broker: I will pay 20.25 for 100
Chicago broker: I will sell 100 at 20.50
Buyer broker: I will take 100 at 20.5
Chicago broker: I have sold you 100 shares of Small Time Insurance common stock at 20.50 Buyers produce demand for a given security or asset by entering bid orders to buy the security at a specified amount and price; sellers create the supply for the security by entering ask orders, again for set amounts and prices. Buyers produce demand for a given security or asset by entering bid orders to buy the security at a specified amount and price; sellers create the supply for the security by entering ask orders, again for set amounts and prices. A broker that wants to buy a security for a customer will check the market by telephoning several brokers he thinks are making a market in the security.

Negotiated Market

In a broad analytical context, noise refers to information or activity that confuses or misrepresents genuine underlying trends. 

In a broad analytical context, noise refers to information or activity that confuses or misrepresents genuine underlying trends. In the financial markets, noise can include small price corrections in the market as well as price fluctuations–called volatility–that distorts the overall trend. However, market noise can make it challenging for investors to discern what's driving the trend and whether a trend is changing or merely experiencing short-term volatility. Market noise can make it difficult to determine what's driving a trend or if a trend is changing or merely experiencing short-term volatility. Some noise traders attempt to take advantage of market noise by entering buy and sell transactions without the use of fundamental data.

Noise

NYSE Amex Equities is an American stock exchange best known for trading small and micro cap stocks among various other investment vehicles. 

The term NYSE Amex Equities refers to an American stock exchange best known for trading small-cap, micro-cap, corporate bonds, exchange traded funds (ETFs), and other kinds of investments. NYSE Amex Equities is an American exchange that now goes by the name NYSE American. At one time, the American Stock Exchange was the second-largest exchange in the United States—second to the New York Stock Exchange. After the Securities and Exchange Commission (SEC) approval of IEX, NYSE MKT rebranded to NYSE American to reflect the newly implemented speed bump.

Markets

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