N - T Archives - HowTheMarketWorks Education Center

What Is a Short Stock

Bavan Arumugam N - T August 31, 2017October 31, 2018

A short stock is an expression used when you sold shares of a company that you did not own beforehand. Let’s say you expect a stock’s price to drop. Shorting a stock would involve a strategy where you borrow shares Read More

Price Controls

Kevin Smith Economics, N - T April 19, 2017

Definition “Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place to prevent the price from getting Read More

Spending Plan

Kevin Smith Glossary, N - T, Personal Finance April 4, 2016August 22, 2018

Definition of Spending Plan A “Spending Plan” is exactly as it says – a plan of what you will be spending each month. There are usually two parts – your “fixed” spending and your “variable” spending. The fixed part is Read More

Demand

Kevin Smith Economics, Glossary, N - T January 15, 2016October 31, 2018

Definition In Economics, “Demand” is the relationship between prices and how much people want to buy a good or service. Details As the market price of a good goes up, the amount of that good that people are willing to pay Read More

Supply

Kevin Smith Economics, Glossary, N - T January 15, 2016May 27, 2016

Definition In Economics, “Supply” means the relationship between prices and production. In general, the higher the market price of a good or service is, the more producers are willing to sell of it. Details As the market price for a good Read More

Stock Market Crash of 1929

Kevin Smith Glossary, N - T January 14, 2016October 31, 2018

Definition The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States. Details The stock market crash came in multiple parts – the Read More

Reserve Requirement

Kevin Smith Glossary, N - T January 14, 2016June 14, 2018

Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United States). Details The “Reserve Requirement” is Read More

OHLC – Bar Chart

Kevin Smith Glossary, N - T December 15, 2015October 31, 2018

Definition: “OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minute) OHLC are very useful for provide quick visual Read More

What is the New York Stock Exchange?

Kevin Smith Glossary, N - T November 3, 2015October 31, 2018NYSE, stock ex, stock exchange, what is the new york stock exchange, what is the nyse

Definition The New York Stock Exchange (or NYSE) is the largest stock exchange in the world. Think of it as an organized, fast-paced flea market where buyers and sellers from all over the world come to trade U.S. stocks (and Read More

Trailing Orders

Phil Simard Glossary, N - T, Pending August 25, 2015October 31, 2018

Definition An order type that allows to set a moving stop or limit target price. The target price moves based on the daily high. Trailing stops can be set either in percentage or in dollars and cents terms. When in Read More

Risk Level

Phil Simard Advanced Trading Strategies, Glossary, N - T, Pending August 21, 2015October 31, 2018

Definition Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time. Risk Understanding the Read More

Stock

Kevin Smith Glossary, N - T, The 10 Terms You Need To Know August 21, 2015February 17, 2016

Open Interest

Phil Simard Glossary, N - T, Options August 4, 2015October 31, 2018

Definition Open Interest is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired. Details Think first in terms of options contracts: by owning an option, it signifies that Read More

Pullback

Phil Simard Glossary, N - T August 4, 2015October 14, 2015

A pullback is a technical analysis term used frequently when a stock “pulls” back to a resistance and/or support line, usually after a breakout has occurred. Pullbacks can be in an uptrend or downtrend and can pull back upwards or Read More

S&P 500

HTMW Team Glossary, N - T, The 10 Terms You Need To Know July 26, 2015October 31, 2018

The S&P 500, or the Standard & Poor’s 500, is a stock market index based on the common stock prices of 500 top publicly traded American companies, as determined by S&P. It differs from other stock market indices like the Dow Jones Industrial Average and the Nasdaq Composite because it tracks a different number of stocks and weights the stocks differently. It is one of the most commonly followed indices and many consider it the best representation of the market and a bellwether for the U.S. economy. Read More

Sharpe Ratio (Beginner)

Kevin Smith Beginners, Glossary, N - T, Strategies for Beginners July 16, 2015October 14, 2015

Sharpe Ratio for Beginners Introduction The Sharpe Ratio is an important tool for evaluating a stock, or a portfolio, based on how risky it is to get a higher return. You can use the Sharpe Ratio to determine how consistent Read More

OTC (Over The Counter) Stocks

Kevin Smith Beginners, Glossary, N - T, Popular, Stocks May 15, 2015October 31, 2018

Over-The-Counter (OTC) Stocks Most investors are familiar with NASDAQ, the NYSE (New York Stock Exchange), TSX (Toronto Stock Exchange), and most other large national stock exchanges. However, there are also thousands of companies that want to sell shares to the Read More

Technical Analysis Software

HTMW Team Glossary, N - T November 2, 2014October 31, 2018

Technical analysis software automates the charting, analysis and reporting functions that support technical analysts in their review and prediction of financial markets (e.g. the stock market). Read More

Price Ceilings

HTMW Team Glossary, N - T June 13, 2013October 31, 2018Government Intervention, New York City, Price Ceiling, Product Pricing, Real Estate, revenue

Price ceiling is a government-mandated limit on the price that can be charged for a given product, such as a utility or electricity. The intended purpose of a price ceiling is to protect the consumers from conditions that would make a vital product from being financially unattainable for consumers. Read More

Poison Pill

HTMW Team Glossary, N - T June 13, 2013October 31, 2018Carl Icahn, corporate raider, flip-on, flip-over, hostile takeover, poison pill, shareholder rights, T. Boone Pickins

A “Poison Pill” creates a strong defense mechanism for a “targeted takeover company” allowing the company to properly identify legitimate and beneficial acquisitions and weed out the actions of corporate raiders. The “Poison Pill” is also useful in slowing down the speed of potential raids. Read More

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