A 100% equities strategy is a strategy commonly adopted by pooled funds, such as a mutual fund, that allocates all investable cash solely to stocks.

Master Limited Partnerships—An Introduction

A 100% equities strategy is a strategy commonly adopted by pooled funds, such as a mutual fund, that allocates all investable cash solely to stocks. In the 100% equity strategy category, an investor will find a wide range of sub-classes to choose from, including those that focus on one (or a combination of) labels like capital appreciation, aggressive growth, growth, value, and income. Only equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares. With 100% equity strategies, a portfolio's style can be further subdivided into capital appreciation, aggressive growth, growth, value, capitalization, and income, among others. Such a strategy is common among mutual funds that allocate all investable cash solely to stocks, forgoing higher-risk instruments such as derivatives or riskier strategies such as short selling.

100% Equities Strategy

The 130-30 strategy is a strategy that uses financial leverage by shorting poor-performing stocks and purchasing alternate shares that are expected to have high returns.

The 130-30 strategy, often called a long/short equity strategy, refers to an investing methodology used by institutional investors. This investing strategy makes use of shorting stocks and putting the cash from shorting those shares to work buying and holding the best-ranked stocks for a designated period. It uses financial leverage by shorting poor-performing stocks and, with the cash received by shorting those stocks, purchasing shares that are expected to have high returns. From the best ranking stocks, the manager would invest 100% of the portfolio's value and short sell the bottom ranking stocks, up to 30% of the portfolio's value. Short selling is much riskier than investing in long positions in securities; thus, in a 130-30 investment strategy, a manager will put more emphasis on long positions than short positions.

130-30 Strategy

Accumulating shares is a classification of common stock that is given to shareholders of a company in lieu of or in addition to a dividend. 

Accumulating shares is a classification of common stock that is given to shareholders of a company in lieu of, or in addition to, a dividend. The board of a public company, for example, can approve a 5% stock dividend, which gives existing investors an additional share of company stock for every 20 shares they already own. Therefore, in this example, even though an investor who owns 100 shares in a company may receive 5 additional shares, the total market value of those shares remains the same. Employee bonuses paid in stock are sometimes preferred as they defer tax liability to the time of sale.
Stock dividends are also a form of accumulating shares that give shareholders the same tax-deferred benefit. Generally speaking, because equity prices tend to rise over time, the common money wisdom is to accept accumulating shares instead of cash dividends if you have a long time horizon and you don't depend on dividend income for daily living expenses.

Accumulating Shares

Active stocks are heavily traded stocks on an exchange with lower bid-ask spreads and higher liquidity.

8 Things to Consider when using Most Active Stocks Lists

Tech Stocks Lead Rebound After Jobless Claims Drop

Table of Contents
What Are Active Stocks?
Understanding Active Stocks
Determining an Active Stock
What to Consider When Using a List
Most Active Stocks
Active Stocks FAQs Active stock lists show investors stocks with the highest trade volume, the biggest gainers and losers, stocks with the highest daily volume, and the most active stocks by index. These stocks generally fall into one of four categories:
Stocks with the highest number of shares traded
Biggest gainers and losers by percentage, regardless of price or volume
Highest daily volume, calculated by multiplying the stock's value by the total number of shares traded that day
Most active by index, such as the S&P 500
It's important to remember that these lists are meant as a guide. While active stocks are usually indicated by volume, the term can also sometimes apply to sizable price movement, and most outlets will distinguish the difference between an active stock based on volume and an active stock based on price. Active stocks are heavily traded stocks on an exchange or stocks that display a sizeable price movement within a single day.

Active Stocks

Advances and declines refer to the proportion of stocks that closed up versus down relative to the prior day's prices.

Advances and declines refers generally to the number of stocks (or other assets in a particular market) that closed at a higher and those that closed at a lower price than the previous day, respectively. Technical analysts look at advances and declines to analyze stock market behavior, discern volatility, and predict whether a price trend is likely to continue or reverse. The advance-decline ratio, or ADR, compares the number of stocks that closed higher against the number of that closed lower during a particular period (and can be used across many timeframes).
**Advance-decline index**: The advance-decline Index, or ADI, is a market breadth indicator that represents the total difference between advancing and declining securities within an index. Sometimes, the current index level is represented as a horizontal line on a price chart known as the advance-decline line.
**Absolute breadth index**: The absolute breadth Index, or ABI, is a technical indicator that's based on the differences between advances and declines on an index. Advances and declines refers generally to the number of stocks (or other assets in a particular market) that closed at a higher and those that closed at a lower price than the previous day, respectively. Technical analysts look at advances and declines to analyze stock market behavior, discern volatility, and predict whether a price trend is likely to continue or reverse. Advances and declines form the basis of many different technical indicators, including the advance-decline ratio, the advance-decline index, and the absolute breadth index. For example, a low advance-decline ratio can indicate an oversold market, while a high advance-decline ratio can signal an overbought market.

Advances And Declines

After-hours trading refers to the buying and selling of stocks after the close of the U.S. stock exchanges at 4 p.m. U.S. Eastern Time.

NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2019

After-hours trading starts at 4 p.m. U.S. Eastern Time after the major U.S. stock exchanges close. This means that it is quite possible for a stock to fall sharply in the after-hours only to rise once the regular trading session resumes the next day at 9:30 a.m., should many big institutional investors have a different view of the price action during the after-hours trading session. Since after-hours trading can have a significant impact on a stock's price, it's not a bad idea to put a limit order on any shares you intend to buy or sell outside of regular trading periods. From 9:30 a.m. 9:35 a.m., nearly 2.3 million shares traded, more than three times greater than the volume in the initial minutes of the previous day's after-hours, and the price dropped from $164 to $161.
The stock proceeded to trade lower throughout the rest of the day, closing at $157.20. By 5 p.m., the amount of volume trading slowed to only 100,000 shares, while the stock was still trading around $165.

After-Hours Trading

An aftermarket report is an analysis of the post-IPO performance of a new stock or a report on the market for replacement parts for common durable goods.

An aftermarket report refers primarily to a summary of the performance of a newly-issued stock in the period immediately following the stock’s initial public offering (IPO). An aftermarket report analyzes a newly issued stock's price performance during its initial period on the secondary market, or the days and weeks immediately following its initial public offering. A more robust aftermarket report might expand upon the stock’s early financial performance to evaluate the firm’s businesses as well as financial results from the earliest period of the company’s time on the secondary market. An aftermarket report refers primarily to a summary of the performance of a newly-issued stock in the period immediately following the stock’s initial public offering (IPO). By looking at the after-market performance of all IPOs over a certain period (as in a calendar year), analysts and investment bankers can estimate the overall market demand for new issues and may move up or delay a scheduled IPO as a result.

Aftermarket Report

A stock that suffers a short-term price slide as a result of bad news is called an air pocket stock by traders.

A stock that experiences a sudden plunge in price, much like an airplane when hitting an air pocket, is described by stock traders as an air pocket stock. A stock that experiences a sudden plunge in price, much like an airplane when hitting an air pocket, is described by stock traders as an air pocket stock. Whether the term refers to an individual stock or the broader market, an air pocket can be a buying opportunity for the savvy investor who is looking to increase their holdings at a discount price. A single stock, a sector, or the stock market as a whole can hit an air pocket. An air pocket in the stock market is a period of temporary turbulence caused by bad news.

Air Pocket Stock

Alpha (α) , used in finance as a measure of performance, is the excess return of an investment relative to the return of a benchmark index. 

WisdomTree U.S. Quality Dividend Growth Fund

Alpha (α) is a term used in investing to describe an investment strategy's ability to beat the market, or its "edge." Alpha is thus also often referred to as “excess return” or “abnormal rate of return,” which refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole. Experts attribute this trend to many causes, including:
The growing expertise of financial advisors
Advancements in financial technology and software that advisors have at their disposal
Increasing opportunity for would-be investors to engage in the market due to the growth of the Internet
A shrinking proportion of investors taking on risk in their portfolios, and
The growing amount of money being invested in pursuit of alpha
While alpha has been called the “holy grail” of investing, and as such, receives a lot of attention from investors and advisors alike Alpha is often used in conjunction with beta (the Greek letter β), which measures the broad market's overall volatility or risk, known as systematic market risk.
Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over some period. However, since the aggregate bond index is not the proper benchmark for ICVT (it should be the Bloomberg Barclay's Convertible index), this alpha may not be as large as initially thought; and in fact, may be misattributed since convertible bonds have far riskier profiles than plain vanilla bonds.
The WisdomTree U.S. Quality Dividend Growth Fund (DGRW) is an equity investment with higher market risk that seeks to invest in dividend growth equities. Due in part to a growing lack of faith in traditional financial advising brought about by this trend, more and more investors are switching to low-cost, passive online advisors (often called roboadvisors​) who exclusively or almost exclusively invest clients’ capital into index-tracking funds, the rationale being that if they cannot beat the market they may as well join it.
Moreover, because most “traditional” financial advisors charge a fee, when one manages a portfolio and nets an alpha of zero, it actually represents a slight net loss for the investor.

Alpha

The Alternative Investment Market (AIM) is the London Stock Exchange's global market for smaller and growing companies.

Taking AIM: London’s Wild West Stock Market

Settling the Wild West: Companies Put Down Stakes on U.K.'s AIM

The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. Since then, it has helped more than 3,865 companies to raise over £115 billion ($163 billion) and, according to the LSE, is now home to approximately 850 companies with a combined market cap of £104 billion ($147 billion).
The FTSE Group maintains three real-time indexes for tracking AIM: the FTSE AIM UK 50 Index, the FTSE AIM 100 Index, and the FTSE AIM All-Share Index.
Companies seeking to do an initial public offering (IPO) and list on AIM are usually small companies that have exhausted their access to private capital but are not at the level required to undergo an IPO and list on a large exchange. The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. The companies listed on AIM tend to be smaller and more highly speculative in nature, in part due to AIM's relaxed regulations and listing requirements. AIM allows these companies to raise capital by listing on a public exchange with much greater regulatory flexibility compared to the main LSE stock market.

Alternative Investment Market (AIM)

Ankle biter is a slang term for a stock with low market capitalization. 

As Elon Musk Antagonized Rival, the Space Industry Battled over Who Will Host a Cocktail Reception for the President

Ankle biter is a slang term for a stock with low market capitalization. In the article, Maney said that the ankle-biter economy is “a new dynamic for the American economy,” that “\[o\]ur digitally-driven economic revolution has created a new governing algorithm in which large numbers of admirably aggressive, bumptious individuals and startups” are likely to “bring down established and formerly unassailable big incumbents with regularity.” Although there is no etched-in-stone definition, typically, a stock is considered to be a small-cap, if it has a market capitalization of $300 million to $2 billion, while a micro-cap stock is an issue with a market cap of less than $300 million. In February 2018, the Washington Post’s The Switch published a story that describes the company SpaceX being called an ankle-biter by competitors, a pejorative term in this case, but writer Christian Davenport points out that the company has worked as a disruptive force in the space industry. In 2013, contributing writer Dave Maney at Forbes.com reported on the so-called ankle biter economy in a story headlined “The Ankle Biter Economy Rises.”

Ankle Biter

Approved participants are allowed direct access to an exchange's trading environment, providing cost savings to the participant.

Approved participants are typically institutions that are allowed direct access to an exchange's trading environment. The Montreal Exchange, in Canada, requires firms to be formed in Canada, be a member of an SRO, be or become a member of a clearing corporation, and employees of the approved participant who trade on the exchange must first take a training course. Approved participant status usually affords trade execution cost savings and the right to install trading terminals with direct access to the exchange. Approved participants on all exchanges enjoy cost savings on trades as a result of cutting out third parties, and have direct access to the exchange via installed connections. For example, to become an approved participant on the New York Stock Exchange (NYSE), called an Equity Member in this case, the firm must be a U.S. based broker-dealer, who is governed by a Self Regulatory Organization (SRO), and that has a clearing firm.

Approved Participants

Assessable stock is a defunct type of primary offering in which the issuing company is allowed to impose levies on stockholders for more funds.

Assessable stock, now a defunct type of primary offering, was a class of equities that a company would issue to investors at a discount to face value in exchange for the company’s right to come back to investors for more money at a later date. Exam takers, for example, are required to know that a gift of assessable stock is considered both a sale, as well as an offer; the person that received the gift of stock and also has received an offer to essentially buy more stock at a set price, once the company that issued it asks for more money. Another type of assessable stock, called assessable capital stock, made shareholders liable for an amount greater than what they paid for their stock. Assessable stock, now a defunct type of primary offering, was a class of equities that a company would issue to investors at a discount to face value in exchange for the company’s right to come back to investors for more money at a later date. To entice investors into buying a potentially expensive stock, issuers would initially sell the stock at far below the dollar value printed on its stock certificate.

Assessable Stock

The S&P/ASX 200 Index is the benchmark stock market index in Australia, comprising the 200 largest stocks by float-adjusted market capitalization.

The S&P/ASX 200 Index is the benchmark institutional investable stock market index in Australia, comprising the 200 largest stocks by float-adjusted market capitalization. The S&P/ASX 200 is designed to measure the performance of the 200 largest index-eligible stocks listed on the Australian Securities Exchange (ASX) by float-adjusted market capitalization. The S&P/ASX 200 Index is the benchmark institutional investable stock market index in Australia, comprising the 200 largest stocks by float-adjusted market capitalization. The S&P/ASX 200 VIX index, also published by S&P Dow Jones, measures the 30-day implied volatility of the Australian stock market. The index publisher, S&P Dow Jones, thus describes the S&P/ASX 200 as being the preeminent Australian benchmark because it is representative, liquid and tradable.

S&P/ASX 200 Index Definiton

"At a discount" is a phrase used to describe the practice of selling stocks, or other securities, below their current market value

"At a discount" is a phrase used to describe the practice of selling stocks, or other securities, below their current market value, similar to a sale of goods at a retail establishment. The market value of the shares may have increased during the time it took for the options to become fully vested, but the employee is allowed to purchase the allotted shares at that lower price. The nominal, or par, value for a security, which is detailed in the company charter, is the minimum price that a stock of a particular class can be sold for in an initial public offering (IPO). Companies make it is possible for employees with certain stock options to purchase shares at a discount, if they were granted the options early enough. By selling shares below market value, a company’s capitalization could be compromised, leaving it with a shortage of assets to pay its debts should the company lapse into default.

At a Discount

Autex is an electronic platform from Thomson Financial that allows potential buyers or sellers of a large block of shares to identify each other.

The term Autex refers to an electronic platform from Thomson Reuters that gives brokers a place to advertise pre- or post-trade liquidities for equities to their buy-side clients. Institutional investors use the Refinitiv Autex Trade Route system for its:
Multiple asset classes with equities, options, and futures including foreign exchange and fixed-income trades
Unrivaled network visibility of connections, utilization, and order metrics, which enables a one-stop-shop for session monitoring and order flow metrics
Access to the widest range of order types from standard FIX messages to lists and broker-supplied algorithms, and Good till date/Good till cancels
Operational resiliency with regional public offering prices (POPs) and dedicated disaster recovery management
Easy onboarding thanks to a tightly integrated community of order management systems (OMSs) and execution management systems providers
Here's a hypothetical example to show how Autex works. The system is set up to provide investors with the following tools needed in their day-to-day trading activity:
Real-time indications of interest
Trade advertisements according to brokers, sectors, and symbols
Real-time and historic data
Broker rankings by volume on an intraday basis
Thomson Reuters owns a 45% stake in Refinitiv. The term Autex refers to an electronic platform from Thomson Reuters that gives brokers a place to advertise pre- or post-trade liquidities for equities to their buy-side clients. The interface presents indications of interest among traders who wish to get a feel for the market liquidity before executing a large trade by showing trade advertisements in a stock issue.

Autex

Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Authorized stock, or authorized shares, refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation in the U.S., or in the company's charter in other parts of the world. Another reason a company might not want to issue all of its authorized shares is to maintain a controlling interest in the company and prevent the possibility of a hostile takeover.
Amazon’s corporate charter, for example, states that the company’s total authorized stock shall include 5 billion shares of common stock and 500 million shares of preferred stock. The charter permits Amazon to increase its authorized stock if there isn’t enough unissued common stock to allow for the conversion of preferred stock.﻿﻿ Corporate charters often require shareholder approval to increase the number of shares of authorized stock.
An investor might want to know how many authorized shares a company has in order to analyze the potential for stock dilution. Outstanding shares can never exceed the authorized number, since the authorized shares total is the maximum number of shares that a company can issue. Authorized stock, or authorized shares, refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation in the U.S., or in the company's charter in other parts of the world.

Authorized Stock

Basis trading is a trading strategy that seeks to profit from perceived mispricing of securities, capitalizing on small basis point changes in value.

In the context of futures trading, the term basis trading refers generally to those trading strategies built around the difference between the spot price of a commodity and the price of a futures contract for that same commodity. In the context of futures trading, the term basis trading refers generally to those trading strategies built around the difference between the spot price of a commodity and the price of a futures contract for that same commodity. Basis trading, or the basis, as described here relating to futures contracts, is an entirely different concept than the basis price or cost basis of a given security. If the spot price of the corn were $4.00 per bushel, and the futures contract that expired two months out were trading at $4.25 a bushel, then the farmer could now lock in a price with +.25 cent basis. The farmer, at this point, is making a trade that is short the basis, because he is expecting the price of the futures contract to fall and consequently come closer to the spot price.

Basis Trading

Basis risk is the risk that offsetting investments in a hedging strategy will not experience price changes in entirely opposite directions from each other.

Basis risk is the financial risk that offsetting investments in a hedging strategy will not experience price changes in entirely opposite directions from each other. For example, a natural gas producer in Louisiana has locational basis risk if it decides to hedge its price risk with contracts deliverable in Colorado. Another form of basis risk is known as locational basis risk. If the Louisiana contracts are trading at $3.50 per one million British Thermal Units (MMBtu) and the Colorado contracts are trading at $3.65/MMBtu, the locational basis risk is $0.15/MMBtu. Companies making these trades are generally well aware of the product basis risk but willingly accept the risk instead of not hedging at all.

Basis Risk

A basket is a collection of securities with a similar theme, while a basket order is an order that executes simultaneous trades in multiple securities.

A basket is a collection of multiple securities (e.g., stocks, currencies, etc.) which have a similar theme or share certain criteria. In addition, institutional traders may also use baskets for the reasons a retail trader would: executing multiple trades to save time, executing simultaneous trades, or using baskets as part of a trading strategy.
An index fund is a basket of stocks that all meet certain criteria. A basket of securities is multiple positions related to a central theme, such as meeting certain criteria, adhering to a certain strategy, or being part of a sector or industry group. The trader sets up a basket order to buy all the DJIA stocks with market-buy-on-close order. A retail trader may wish to use a basket order if they need to do multiple trades, and they don't want to execute them one by one.

Basket

Bear tack is a slang term for a sudden drop in stock prices that may foretell a longer-term reversal in the market.

Bear tack is a slang term used by stock investors and analysts to describe a negative movement in a stock, sector, or market that may foretell the beginning of a downward trend. Bear tack is a slang term used by stock investors and analysts to describe a negative movement in a stock, sector, or market that may foretell the beginning of a downward trend. Responding to a bear tack is a pressing issue only for investors using active investing strategies who trade frequently in an attempt to beat the market averages. Responding to a bear tack is an issue only for investors using active investing strategies who trade frequently in an attempt to beat the market averages. The phrase bear tack suggests a similar shift in the direction of a market trend, one which investors may need to react to, just as a sailor adjusts to changing conditions.

Bear Tack

A block trading facility (BTF) allows parties to bilaterally engage (buy/sell) in large transactions away from exchanges to avoid an outlier price point.

Nasdaq Private Market 2021 Mid-Year Report

A block trading facility (BTF), offered by some stock and derivatives exchanges, allows counterparties to a large trade bilaterally agree to have that traded executed outside of public order books in order to avoid an outlier price point that might inadvertently affect that security's market price. A block trading facility (BTF), offered by some stock and derivatives exchanges, allows counterparties to a large trade bilaterally agree to have that traded executed outside of public order books in order to avoid an outlier price point that might inadvertently affect that security's market price. A block trading facility (BTF) allows for large orders, known as block trades, to be posted outside of normal market mechanisms in order to keep that trade from influencing the market. When a large institution decides to initiate a block trade, it will reach out to a block house or directly to the staff of an exchanges block trading facility. A block trading facility is usually effected through a specialized brokerage that deals in block trades, known as a block house.

Block Trading Facility (BTF)

A blue chip is a nationally recognized, well-established, and financially sound company.

The Intelligent Investor by Benjamin Graham

2020's Dividend Aristocrats List: All 66 Stocks

A blue chip is a nationally recognized, well-established, and financially sound company. The Dividend Aristocrat List published by Standard and Poor’s comprises of large-cap blue-chip companies from the S&P 500 that have increased dividends every year for the last 25 years.
Blue-chip stocks are seen as less volatile investments than owning shares in companies without blue-chip status because blue chips have an institutional status in the economy. Most publicly traded blue-chip stocks are included in the Dow Jones Industrial Average (DJIA), one of the most popular blue-chip indices. An investor can track the performance of blue-chip stocks through a blue-chip index, which can also be used as an indicator of industry or economy performance. Today, blue-chip stocks don’t necessarily refer to stocks with a high price tag, but more accurately to stocks of high-quality companies that have withstood the test of time.

Blue Chip

A blue-chip stock is a company that typically has a large market cap, a sterling reputation and many years of success in the business world.

A blue-chip stock is a huge company with an excellent reputation. Some examples of blue-chip stocks are IBM Corp., Coca-Cola Co. and Boeing Co.
While dividend payments are not absolutely necessary for a stock to be considered a blue chip, most blue chips have long records of paying stable or rising dividends. A blue-chip stock is generally a component of the most reputable market indexes or averages, such as the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500 and the Nasdaq-100 in the United States, the TSX-60 in Canada or the FTSE Index in the United Kingdom. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name. Younger investors can generally tolerate the risk that comes from having a greater percentage of their portfolios in stocks, including blue chips, while older investors may choose to focus more on capital preservation through larger investments in bonds and cash.

Blue-Chip Stock

A board lot is a standardized number of shares offered as a trading unit—usually a minimum transaction size of 100 units/shares.

A board lot is a standardized number of shares defined by a stock exchange as a trading unit. The idea behind board lots is to facilitate more efficient trading by defining blocks of shares for trading, instead of having a random assortment of odd lots being traded. Unlike the U.S., where board lot sizes are typically standardized to 100 shares, the Toronto Stock Exchange (TSX/TMX) has variable board lot sizes that are dependent on the price of the security. A stock exchange might define one board lot as equaling 1,000 shares for stocks priced under $1, and 100 shares for shares valued at more than $1. A board lot is what a stock exchange determines as its standard trading unit for round lots.

Board Lot

A book is a record of all the positions that a trader is holding, showing the quantity of longs and shorts in each security.

A book is a record of all the positions held by a trader. Yet some stock prices trade below book value, while others trade at many times book value, so it is a useful metric but is only one factor to consider when making a stock-related trading decision. A trader with a simple book may hold only two positions: say one long position of XYZ stock with 1,500 shares and a short position of 1,700 shares in ABC stock. The term book can refer to book value, which is an accounting term used to describe a key measurement of company value. The term book used in this context is generally used in reference to institutional traders who trade the book positions against client orders.

Book

The Boston Stock Exchange in Boston's historic financial district was the 3rd oldest stock exchange in the U.S. before being acquired by Nasdaq in 2007.

The Boston Stock Exchange (BSE) .B was one of the last and oldest regional stock exchanges in the United States. The Exchange also broke ranks with its larger rival, the New York Stock Exchange, by allowing bonds to be exchanged for cash in 1914, which marked the start of the Great War, World War I.
Most have merged or are otherwise defunct now, but a list of major companies on the Boston Stock Exchange included:
AMERICAN MOLD GUARD
TIMELINE, INC. In 2002, the Boston Stock Exchange co-founded the Boston Options Exchange (BOX) with the derivatives exchange, the Montreal Exchange, and the discount brokerage, Interactive Brokers. Boston's gas-lit lamps and red brick streets compliment the Boston Stock Exchange's rich heritage. The Boston Stock Exchange (BSE) .B was one of the last and oldest regional stock exchanges in the United States.

Boston Stock Exchange (BSE) .B

Bunching is the combining of small or unusually-sized trade orders for the same security into one large order for simultaneous execution.

SEC and CFTC Cases Indicate Scrutiny of Trade Allocations and 'Cherry Picking

Bunching is the combining of multiple odd-lot or round-lot orders for the same security so that they can all be executed at the same time. Bunching can be financially advantageous for investors with orders for less than 100 shares of a particular security as odd-lot orders are difficult to match, meaning additional charges for them are common.
Regulators heavily scrutinize bunching and trade allocation practices in order to ensure that traders aren’t using cherry-picking to defraud customers. Bunching trades provides a means for traders to treat all clients equally, by aggregating odd-lot orders together for purchase or sale, and then breaking them down afterward into the various client accounts through a process known as the allocation process. Some unscrupulous day traders participate in a bunching practice known as cherry-picking, which seeks to take advantage of normal fluctuations in trading prices throughout the day to pick out winning or losing trades and allocate them in a manner that favors the traders or their client’s accounts. Often, bunching occurs on the floor of a securities exchange when traders and brokers roll up small or unusually sized trade orders into one larger order and then trade it in one single transaction.

Bunching

S&P Capital IQ is a technology and financial services company that acts as the research division of S&P Global, the owner of the S&P Dow Jones Indices.

S&P Capital IQ is the research division of S&P Global, one of the world's largest providers of ratings, data, research, and the S&P Dow Jones Indices. Additionally, S&P Capital IQ researches and analyzes more complex investment structures, including mutual funds and hedge funds, providing investors with up-to-date performance comparisons, insights, and fund strategies.
Capital IQ's widespread approach to market analysis provides information that can be valuable to investors of all types, ranging from large institutional traders to smaller, individual investors, and financial hobbyists.
The web portal for Capital IQ’s products offers many powerful tools for institutional and individual investors alike. McGraw-Hill Financial was rebranded as S&P Global in 2016, and Capital IQ was rebranded as S&P Capital IQ. S&P Capital IQ is the research division of S&P Global, one of the world's largest providers of ratings, data, research, and the S&P Dow Jones Indices. S&P Capital IQ’s web portal offers various software and data feeds to advisory firms, banks, corporations, investment managers, private equity funds, universities, and more, providing overall market awareness and investment analysis audiences can use to inform their investment strategies.

S&P Capital IQ

A capital pool company (CPC) allows emerging companies in Canada to go public through a buyout by a listed company with capital but no commercial operations.

A capital pool company (CPC) is an alternative way for private companies in Canada to raise capital and go public. Capital pool companies are similar to blind pools in the United States, but the process is controlled and regulated by a single Canadian exchange.
The process of creating a capital pool company has two phases:
**Phase 1: Creation of the Capital Pool Company**
In phase one, at least three experienced individuals pool capital to begin the process—the total amount must exceed $100,000 or 5% of the funds being raised. A capital pool company is a listed company with experienced directors and capital, but no commercial operations at the time of the initial public offering (IPO). A capital pool company (CPC) is an alternative way for private companies in Canada to raise capital and go public. A capital pool company (CPC) provides an alternative mechanism for private companies to raise capital and go public.

Capital Pool Company (CPC)

A cashless exercise is a transaction in which an employee exercises their stock options by using a short-term loan provided by a brokerage firm.

A cashless exercise, also known as a "same-day sale," is a transaction in which an employee exercises their stock options by using a short-term loan provided by a brokerage firm. Proceeds from such an exercise would receive favorable tax treatment provided that a few conditions are met, such as whether the employee has held the shares for at least one year from the exercise date and two years from the grant date. A cashless exercise transaction involves using a broker to facilitate the sale of stock options by employees. If she were to exercise all of her options, she could purchase 5,000 shares of XYZ stock at a price of $20 per share. Cashless exercise transactions are made possible by brokers, who will lend employees money with which to exercise their options.

Cashless Exercise

A cash market is a marketplace in which the commodities or securities purchased are paid for and received at the point of sale.

A cash market is a marketplace in which the commodities or securities purchased are paid for and received at the point of sale. Pros
Real-time prices of actual market prices
Active and liquid markets
Can take immediate delivery, if desired
Taking physical delivery in many cases is not desired
Not suited for hedging
A disadvantage of the cash market, however, is taking delivery of the physical commodity. Many commodities have active cash markets, where physical spot commodities are bought and sold in real-time for cash. Although a vast amount of transactions take place on cash markets worldwide, a far larger quantity of transactions take place on futures markets. The cash market should not be confused with the money market, which involves trading in cash equivalents (i.e. very short-term debt instruments) such as Treasuries and commercial paper.

Cash Market

The phrase "Cats and Dogs" refers to speculative stocks that are lightly regulated and traded over the counter (OTC).

SEC Charges Broker and Former Officer of VMT Scientific, Inc. in 'Pump-and-Dump' Scheme and Suspends Trading in VMT Scientific Stock

"Cats and dogs" refer to speculative stocks of companies that may be engaged in questionable business practices. Investors may struggle to find timely and reliable information cats and dogs, because, unlike larger firms, they don't receive the same scrutiny from regulators like the Securities and Exchange Commission (SEC).
The SEC, which oversees publicly traded companies, only obtains financial filings from companies with over $10 million in assets and at least 500 registered shareholders. Cats and dogs are often penny stocks—shares of companies with small market caps and limited trading volumes. They're often trade as penny stocks, which are shares of firms with small market capitalizations and limited trading volume that trade over-the-counter (OTC) rather than on a traditional exchange. Smaller companies can therefore avoid registering their financial statements with the SEC, making it easier for unscrupulous companies to mislead investors with false information.

Cats and Dogs

Class of shares is an individual category of stock that may have different voting rights and dividends than other classes that a company may issue. 

Amended and Restated Certificate of Incorporation of Alphabet Inc

A class of shares is a type of listed company stock that is differentiated by the level of voting rights shareholders receive. Whether referring to different share classes of a company's stock or the multiple share classes offered by advisor-sold mutual funds, both cases refer to different rights and costs owned by holders of each share class. Two of the primary types of stock are common shares, representing the majority of shares available across the market, and preferred stock, which typically guarantee a fixed dividend but do not have voting rights. There are three share classes (Class A, Class B and Class C) which carry different sales charges, 12b-1 fees and operating expense structures. For example, a listed company might have two share classes, or classes of stock, designated as Class A and Class B.

Class of Shares

The closing tick is a measure of the number of stocks that were moving higher or moving lower at the close of the regular trading day.

The closing tick is the difference between the number of stocks that closed higher than their previous trade and the number that closed lower than their previous trade. The closing tick for a single stock or for the wider market gives traders and individual investors a sense of the direction of the market on the following day and an indicator of how well their strategies worked the previous day. The closing tick is the difference between the number of stocks that closed higher than their previous trade and the number that closed lower than their previous trade. The closing tick is an indicator of the price direction of a single stock or the market as a whole. Stocks that are ticking downwards near the end of the trading day are often referred to as selling at the close while stocks that are rising in price at the end of the day are known as buying at the close.

Closing Tick

The cockroach theory assumes that when a company issues bad news, there may be many more related negative events yet to be revealed.

Arthur Andersen’s License Revoked in Texas

New Century Financial Corporation (Form: 8-K)

The cockroach theory refers to a market theory that states when a company reveals bad news to the public, many more related, negative events may be revealed in the future. The cockroach theory refers to a market theory that states when a company reveals bad news to the public, many more related, negative events may be revealed in the future. 1:13
The cockroach theory is a nonscientific theory that is predicated on the idea that a company's fortunes are dependent on both external and internal forces, and may not just be affected by one piece of bad news. The cockroach theory states that when a company reveals bad news, many more related, negative events may be revealed in the future. In October 2001, reports emerged that energy company Enron, which was upheld as a model of success for U.S. corporations, engaged in deceptive accounting practices, misleading investors and the public for years about the company's financial health.

Cockroach Theory

A contra market is one that tends to move against the trend of the broad market or has a low or negative correlation to the broader market.

Table of Contents
What Is a Contra Market? While contra markets provide a potentially safer or more profitable place to be when the broader market or economy changes direction, holding contra assets during a major bull market could mean missing out on big returns from the broader market. Understanding a Contra Market
Contra Market Strategies
Disadvantages
Example of a Contra Market: Gold
A contra market is a description of an asset or investment that moves against the trend of the broad market. Contra (or contrarian) market securities and sectors tend to have a negative correlation, or weak correlation, with the broader market index and the general economy. A contra market is one that moves against the trend of the broader market and tends to have a negative correlation with it or at least a relatively weak correlation.

Contra Market

The conversion parity price is the price paid for converting the security from debt to shares.

The conversion parity price refers to the break-even price on a convertible security. The conversion parity price is calculated by dividing the current value of the convertible security by the conversion ratio, which is the number of shares a convertible security can be converted into.
**Conversion Parity Price = Value of Convertible Security / Conversion Ratio**
For example, suppose an investor had a convertible bond with a current market price of $1,000 that could be converted into 20 shares of common stock in the issuing company. Conversion parity price can be viewed as the minimum price that the investor is looking for when considering exercising the conversion option in a convertible security. Conversion parity price is the effective price an investor paid for the opportunity to convert from a company's bond into shares of stock. The conversion parity price on a convertible bond at issue is generally much higher than the company’s current share price.

Conversion Parity Price

A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders.

Netflix Announces Seven-For-One Stock Split

Netflix Unadjusted Stock Price, July 14, 2015

A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders. Stock splits, acquisitions and company name changes are examples of mandatory corporate actions; tender offers, optional dividends and rights issues are examples of voluntary corporate actions. A spin-off occurs when an existing public company sells a part of its assets or distributes new shares in order to create a new independent company. Contrary to a merger, an acquisition involves a transaction in which one company, the acquirer, takes over another company, the target company. A cash dividend is subject to approval by a company's board of directors, and it is a distribution of a company's earnings to a specified class of its shareholders.

Corporate Action

A counter-cyclical stock is a type of stock with financial performance that is negatively correlated to the overall state of the economy.

A counter-cyclical stock refer to the shares of a company that belongs to an industry or niche with financial performance that is typically negatively correlated to the overall state of the economy. Investors attracted to stocks in counter-cyclical industries are faced with the arduous task of trying to time the market—that is, to predict where the bottom of the business cycle is in order to sell at the optimal time and then predict where the top of the cycle is in order to buy at the optimal time. Counter-cyclical stocks will also tend to underpeform during periods of economic expansion, when cyclical stocks will do well. Counter-cyclical stocks rise and fall in opposition to cyclical stocks. Purchasing counter-cyclical stocks can serve as a good hedge to the standard recessionary pressures that can cause most stocks to decline.

Counter-Cyclical Stock

Coverage initiated is when a brokerage or analyst issues their first rating on a particular stock, and it's especially relevant after a company has gone public.

Coverage initiated is a phrase used in financial media to announce that a brokerage or analyst issues their first rating on a particular stock. Prior to the initiation of analyst coverage, the company has not likely received any official analyst ratings although usually a lot of press has surrounded the company in its later growth phases and rounds of venture capital or private equity investments. The initiation of analyst coverage on a stock is significant to traders and fund managers because it indicates increased attention, and resulting trading volume will likely follow because an analyst is continually publishing on the subject going forward. Certain media sites like _The Wall Street Journal_’s Marketwatch and Bloomberg will aggregate these initial ratings into an average “analyst estimate.”
Unlike many regular analyst reports Coverage initiated often takes place either after a highly visible company has recently gone public or after the stock has been available for a while and has had sufficient success for institutional investors to care about the details of that company and its business.

Coverage Initiated

The Cramer bounce refers to the sudden overnight rise of a stock's price after it has been recommended by Jim Cramer on his CNBC show, "Mad Money."

The Cramer bounce refers to the sudden overnight rise of a stock's price after it has been recommended by Jim Cramer on his long-running CNBC show, "Mad Money." Cramer founded his own hedge fund, Cramer & Co. (later Cramer, Berkowitz & Co.), in 1987. Notably, in January 2009, graduate students from the University of Pennsylvania published a study claiming that over time, the average next-day increase for a stock that Cramer recommended was 3% for the entire study sample, and almost 7% for smaller cap stocks. His recommendations affect the price, with the impact reversing quickly, consistent with pricing pressure caused by viewers' jumping on Cramer's recommendations. While Cramer may be able to provide insight into the market thanks to his long history on Wall Street and his financial background, his advice is limited for individuals who will have differing financial portfolios, risk tolerances, and investment needs.

Cramer Bounce

The Canadian Securities Course (CSC™) is an entry-level program that helps an individual to become a qualified mutual fund representative.

What is the Canadian Securities Course (CSC)

CANADIAN SECURITIES COURSE (CSC®) INFORMATION

Moody’s Corporation Acquires CSI Global Education

Exam Locations: Canada; computer-based exams also available in Toronto and Montreal
Official Exam Website: Canadian Securities Institute
Exam Topic Weights:
The current Canadian Securities Course™ consists of two volumes of textbooks. The Canadian Securities Course is an exam conducted by the Canadian Securities Institute (CSI) for individuals interested in trading securities or providing investment advice. However, it is usually common practice to complete the Canadian Securities Course (CSC™) prior to the CPH course
Exam Date: Varies according to the Canadian city in which the exam will be taken The first exam covers the Canadian investment marketplace, the economy, features and types of fixed-income securities, pricing and trading of fixed-income securities, common and preferred shares, equity transactions, derivatives, financing and listing securities, and corporations and their financial statements.

Canadian Securities Course (CSC™)

A cult stock is a stock with a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals.

How Steve Jobs Created the Reality Distortion Field (and You Can, Too)

A cult stock describes a stock that has a sizable investor following despite the company lacking when it comes to its underlying fundamentals. It is this reason that analysts stress not to invest in cult stocks because of their popularity or hype, but to truly understand their value as a company to determine whether the facts and figures hold up and if the tides of the market are changing, such as the story with Blockbuster and Netflix. Cult stocks can also be characterized by the strong personalities leading them, such as Tesla (TSLA) CEO and founder Elon Musk and Apple founder Steve Jobs. Cult stocks are stocks that have an intense following by investors but whose financial fundamentals don't support their sizable base. A cult stock describes a stock that has a sizable investor following despite the company lacking when it comes to its underlying fundamentals.

Cult Stock

Curb trading occurs outside of general market operations, commonly through computers or telephones after exchanges close.

American Stock Exchange Historical Timeline

Curb trading occurs outside of general market operations or after the official exchanges have closed. The origins of curb trading trace back to curbstone brokers who were known to conduct trading on the actual curbs of streets in certain financial districts, such as in New York City. Today, curb trading is a catch-all phrase for any trading activity that occurs away from an organized exchange, be it a physical, electronic, centralized, or decentralized exchange. As opposed to trading on official exchanges such as the New York Stock Exchange (NYSE) or the NASDAQ Stock Market. The origins of curb trading trace back to curbstone brokers who were known to conduct trading on the actual curbs of streets in certain financial districts.

Curb Trading

Cushion theory says a stock’s price must rise if investors are taking short positions in it because eventually, they must cover positions by purchases.

Cushion theory posits that a heavily shorted stock's price, while it falls at first, will again rise because the short-sellers must eventually purchase shares to cover their short positions. Technical analysts who subscribe to cushion theory consider it particularly encouraging if the short positions in a stock are twice as high as the number of shares traded daily—making it more likely that short sellers will have to cover their positions quickly, ensuring more of a rise in the shares' price.
Suppose, for example, that a pharmaceutical company with a new drug undergoing a clinical trial will soon release interim data. Cushion theory posits that a heavily shorted stock's price, while it falls at first, will again rise because the short-sellers must eventually purchase shares to cover their short positions. Once the short sellers recognize the bad news is limited and share price declines are abating, they would cover their short positions, causing the stock price stabilize and rise. Cushion theory is based on the expectation that while the accumulation of large short positions in a stock may cause the price to drop, a rise will eventually follow due to the buying that short-sellers must do.

Cushion Theory

Custody-only trading is a system in which shares must be registered to the holder by name and can only be traded in physical form.

Custody-only trading is a system in which shares must be registered to the holder by name (and not that of an owner's broker or custodian) and can only be traded in physical form (e.g., paper stock certificates). Since custody-only trading requires purchase and sales of physical shares only, there is no stock for short-sellers to borrow or pretend to borrow, thereby discouraging naked shorting. If the owner of the shares wishes to sell them, they must contact the transfer agent who will facilitate the creation of new share certificates in the new owner's name, and cancel the prior owner's certificates. Custody-only trading curbs naked short-selling, but this comes at the expense of liquidity and efficiency since it takes more work and time to buy or sell shares. Custody-only trading is a system in which shares must be registered to the holder by name (and not that of an owner's broker or custodian) and can only be traded in physical form (e.g., paper stock certificates).

Custody-Only Trading  and Example

Days to cover measures the expected number of days to close out a company's shares outstanding that have been shorted.

"Days to cover" measures the expected number of days to close out a company's outstanding shares that have been sold short. Days to cover are related to the short ratio as a measure of short interest in a stock.
Days to cover is a temporal indication of the short interest in a company's stock. > Days to cover = current short interest ÷ average daily share volume
Days to cover can be useful to traders in the following ways:
It can be a proxy for how bearish or bullish traders are about that company, which can aid future investment decisions. The trader benefits if the price of the shares fall after the shares are borrowed and sold, as this allows the investor to repurchase the shares at a price lower than the amount for which the shares are sold. For example, if investors have shorted 2 million shares of ABC and its average daily volume is 1 million shares, then the days to cover is two days.

Days To Cover

Decentralized dark pool trading platforms are venues for the anonymous trading of cryptocurrencies.

Decentralized dark pool trading platforms are trading venues for anonymously trading cryptocurrencies. Decentralized dark pools break down a cryptocurrency order into multiple fragments and match them back again using zero-knowledge proofs.
Dark pool trades have had a limited effect on equity markets because there are caps governing the number of such trades. The cryptocurrency ecosystem is still evolving and the dearth of large institutional investors and liquidity in the space means that decentralized dark pool trades have a fairly limited impact on prices and trading in mainstream crypto markets. Decentralized dark pool trading platforms are anonymized trading venues for large trades of cryptocurrencies. Decentralized dark pool trading platforms are trading venues for anonymously trading cryptocurrencies.

Decentralized Dark Pool Trading Platforms

Decimal trading is a system in which the price of a security is quoted in a decimal format, as opposed to the older format that used fractions.

SEC Concept Release: Request for Comment on the Effects of Decimal Trading in Subpennies

Division of Market Regulation: Responses to Frequently Asked Questions Concerning Rule 612 (Minimum Pricing Increment) of Regulation NMS

Table of Contents
What Is Decimal Trading?
Understanding Decimal Trading
Bid-Ask Process
Pips and Forex Quotes
Decimal Price vs. Fractional Quote Rule 612, known as the sub-penny rule, requires the minimum price increments for stocks over $1.00 to be $0.01 while stocks under $1.00 can be quoted in increments of $0.0001. Rule 612 requires the minimum price increments for stocks over $1.00 to be $0.01 while stocks under $1.00 can be quoted in increments of $0.0001. The spread in any given security is based on the volume (number of participants), volatility, and the price of the stock.
Pips are the equivalent of 1/100, one basis point or $0.0001. For example, prior to decimalization, one-sixteenth (1/16) of $1 was the minimum price movement represented in a price quote, equal to $0.0625.

Decimal Trading

A diffusion index measures the cumulative number of stocks that are advancing over time. It can be used to see how many components of a group are moving higher or lower.

Table of Contents
What Is a Diffusion Index?
Understanding the Diffusion Index
Special Considerations
Diffusion Index vs. Tick Index
Limitation The diffusion index can be used to spot divergences, which could signal strength or weakness that is not visible by looking at the stock index on its own.
Diffusion Index (DI) \= ( Advances − Declines ) \+ PDIV where: Advances \= Number of stocks moving higher Declines \= Number of stocks moving lower PDIV \= Previous DI value \\begin{aligned} &\\text{Diffusion Index (DI)} = ( \\text{Advances} - \\text{Declines} ) + \\text{PDIV} \\\\ &\\textbf{where:}\\\\ &\\text{Advances} = \\text{Number of stocks moving higher} \\\\ &\\text{Declines} = \\text{Number of stocks moving lower} \\\\ &\\text{PDIV} = \\text{Previous DI value} \\\\ \\end{aligned} ​Diffusion Index (DI)\=(Advances−Declines)+PDIVwhere:Advances\=Number of stocks moving higherDeclines\=Number of stocks moving lowerPDIV\=Previous DI value​
The diffusion index, also known as the advance/decline index, is one of many different forecasting tools used by technical analysts to signal when the market is bullish or bearish. Generally, if the diffusion index is rising with a stock index, that helps confirm that the uptrend within the stock index is strong, as an increasing number of stocks are moving higher. It means fewer stocks are advancing, which makes sense since the stock index is declining (and the stocks within the stock index are declining). In the stock market, a rising diffusion index means there is an increasing number of stocks moving higher, which is positive for stock indexes moving higher.

Diffusion Index

Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company.

Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company. If that company later issues additional stock (often called secondary offerings) they have increased the float and therefore diluted their stock: the shareholders who bought the original IPO now have a smaller ownership stake in the company than they did prior to the new shares being issued. In situations where a company splits its stock, current investors receive additional shares while the price of the shares is adjusted accordingly, keeping their percentage ownership in the company static. For example, if an investor's stake is 20%, and the company is going to hold an additional funding round, the company must offer discounted shares to the investor to at least partially make up for the dilution of the overall ownership stake. Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company.

Dilution

Display Book was a NYSE proprietary tracking tool used on market exchanges to display, record and execute market order data.

NYSE Cash Equities Market – Matching Engine Upgrade Universal Trade Platform (UTP) to replace NYSE Display Book (DBK)

Display Book was a proprietary tracking tool for the New York Stock Exchange (NYSE) which was used to display, record and execute market orders. Trade and order data included the order type, price, time and quantity for a specific security. Display Book was a proprietary tracking tool for the New York Stock Exchange (NYSE).
Display Book was used on market exchanges to display, record, and execute market orders. Display Book was a proprietary tracking tool for the New York Stock Exchange (NYSE) which was used to display, record and execute market orders. Trade and order data included the order type, price, time and quantity for a specific security. UTP furthermore combined the functions of Display Book and Super Display Book, the supporting database system for Display Book. The New York Stock Exchange is the largest equity exchange in the world.﻿﻿ The NYSE Display Book was used by specialists on the exchange to execute orders and manage order flow.

Display Book

Distribution stock refers to a large block of a security that is sold into the market gradually in smaller blocks rather than in a single large block.

Distribution stock refers to a large blocks of a security that are carefully sold into the market gradually in smaller blocks so as to inundate the market with sell orders for the security and driving down its price. To get an idea of how this kind of distribution of stock shares works, it is helpful to contrast what an individual trader does when selling stock with what a large institutional investor must do to sell their stock. The portfolio manager knows that removing this position by placing a single order into the markets will quickly absorb all current buy orders at the market price, and that market makers will begin adjusting market prices to find more buyers. Distribution stock refers to a large blocks of a security that are carefully sold into the market gradually in smaller blocks so as to inundate the market with sell orders for the security and driving down its price. In the black boxes marked in the middle of the chart, it becomes clear that though the price trended in a sideways, range-bound manner, the number of sell orders as calculated by the accumulation/distribution indicator (shown as the orange line below the price chart) depicts a trend towards more selling.

Distribution Stock

Dogs of the Dow is an investment strategy based on the 10-highest dividend-yielding stocks in the Dow Jones Industrial Average (DJIA).

"Dogs of the Dow" is an investment strategy that attempts to beat the Dow Jones Industrial Average (DJIA) each year by leaning portfolios toward high-yield investments. You can hand-pick individual stocks and build your own portfolio; invest directly in the Dow through exchange-traded funds (ETFs); or instead of investing in the entire Dow, you can follow the Dogs of the Dow strategy, whose stocks offer better yields than the Dow as a whole. The 2021 Dogs of the Dow
**Company**
**Dividend Yield**
Cisco Systems
Chevron Corp.
The Coca-Cola Co.
Merck & Co.
Walgreens Boots
As of Dec. 31, 2020
The idea is to make stock picking somewhat easy and relatively safe, the latter because the universe is limited to blue-chip stocks. As a tactic, Dogs of the Dow goes like this: After the stock market closes on the last day of the year, select the 10-highest dividend-yielding stocks in the DJIA. Image by Sabrina Jiang © Investopedia 2021
The cumulative effect of this performance year after year shows that despite losing more in 2008 than the index, the strategy made up ground and turned in a respectable performance for the decade.
Investors who had begun with $10,000 and held it in the DJIA from the beginning of 2008 to the end of 2018, would find their account had grown to approximately $17,350.

Dogs of the Dow

A Dutch auction is a public offering auction structure in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold.

A Dutch auction is a market structure in which the price of something offered is determined after taking in all bids to arrive at the highest price at which the total offering can be sold. In a Dutch auction, the price with the highest number of bidders is selected as the offering price so that the entire amount offered is sold at a single price. If a company is using a Dutch auction initial public offering (IPO), potential investors enter their bids for the number of shares they want to purchase as well as the price they are willing to pay. A Dutch auction is a market structure in which the price of something offered is determined after taking in all bids to arrive at the highest price at which the total offering can be sold. A Dutch auction also refers to a type of auction in which the price of an item is lowered until it gets a bid.

Dutch Auction

Deposit/Withdrawal at Custodian (DWAC) is an automated system for deposits and withdrawals of securities at the Depository Trust Company (DTC). 

Deposit/withdrawal at custodian (DWAC) is a method of electronically transferring new shares or paper share certificates to and from the Depository Trust Company (DTC) using a Fast Automated Securities Transfer (FAST) service transfer agent as the distribution point. While this process is electronic, shareholders can still withdraw their stock from their brokerage accounts and request a physical stock certificate by either having the broker initiate the request through DTC or by having their broker send the shares electronically directly to the transfer agent through the DWAC system. Shareholders can deposit their stock into a brokerage account by either sending their physical stock certificate to their broker or by having the transfer agent send the shares directly to the broker through the DWAC system. Deposit/withdrawal at custodian (DWAC) is a method of electronically transferring new shares or paper share certificates to and from the Depository Trust Company (DTC) using a Fast Automated Securities Transfer (FAST) service transfer agent as the distribution point. To deposit your shares to your broker via DWAC, shareholders must provide original stock certificate(s), the DWAC deposit form, and applicable fees.

Deposit/Withdrawal At Custodian (DWAC)

"E" was formerly added to Nasdaq stock symbols that were delinquent in regulatory filings. A warning is now provided on a stock quote instead.

Data News #2005 - 21, Financial Status Indicator display requirement information

"E" was a temporary character suffix added to stock symbols traded on the Nasdaq exchange, which indicated that the issuer of the stock was delinquent in regulatory filings. In such a case, if that stock symbol is listed on the Nasdaq, the exchange requires that data vendors show viewers that the financial status of the company is not normal by way of the FSI data box. Nasdaq data distributors are now required to show customers an FSI data box if the symbol being viewed is delinquent in submitting regulatory filings. For example, if a cable television show is discussing a stock then they don't need to provide the FSI data if the company has failed to submit filings, although they should provide an alert or let the viewers know. The Nasdaq replaced the symbol suffixes with the Financial Status Indicator Field in order to ensure that market players had access to both financial status information and the trading history for a given security.

Stock Trading Strategy and Education

More in Trading

Terms in Stock Trading Strategy and Education