Category Archives: N – T

Terms that start with the letters N – T

Sole Proprietorship

Simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. In a sole-proprietorship there is no legal distinction between the assets and liabilities of a business and those of its owner. It is by far the most popular business structure for startups because of its ease of formation, least record keeping, minimal regulatory controls, and avoidance of double taxation.

Retained Earnings

Retained earnings is calculated by adding net income to (or subtracting any net losses from) the beginning retained earnings and then subtracting the dividends that were paid to shareholders

S Corporation

One of the ways to define a corporation. S Corporations are allowed by the IRS for most companies with less than 75 shareholders.

National Debt

The total amount that the federal government has borrowed including internal debt (borrowed from national creditors) and external debt (borrowed from foreign creditors).

Stop Limit

A Stop Limit is an order that combines the features of stop order with the features of a limit order. A stop limit order executes at a specified price (or better) after a specified stop price is reached. After the stop price is reached, the stop limit order becomes a limit order to buy (or sell) at the limit price or better.

Sherman Antitrust Act

US federal legislation of 1890 that prohibited the creation of monopolies by outlawing direct or indirect attempts to interfere with the free and competitive nature of the production and distribution of goods. Amended by the Clayton Act of 1914. Also called Sherman Act.

Support and Resistance

Resistance and support levels are widely used by experienced traders to formulate trading strategies. For example, if a stock is approaching a very strong resistance level, a trader may prefer to close the position rather than take the risk of a significant decline if the stock uptrend reverses.

QuantShare

The Most Powerful and Complete Trading Software Quantshare is a desktop application that allows trader to monitor and analyze the market.  You can display charts, add indicators, create watchlists, create trading strategies, backtest these strategies, create portfolios based on these strategies…  QuantShare is suitable for all levels of traders and it works with U.S. and Read More…

Stock Picking Software

Stock Picking Software automates the task of identifying the best stocks and the best time to buy those stocks. This software can sometimes be programed by the user and sometimes comes pre-programmed by the manufacturer to identify the right buying opportunities and the right timing.

Order Types

Order Types offered in our Stock Market Game: Market Orders, Limit Orders, Stop Market Orders, Stop Limit Orders and Trailing Stop Orders

Order

An investor’s instructions to a broker or brokerage firm to purchase or sell a security. Orders are typically placed over the phone or online. Orders fall into different available types which allow investors to place restrictions on their orders affecting the price and time at which the order can be executed.

Open End Mutual Funds

An open end mutual fund don’t have limits on the quantity of shares the fund will issue. Provided that demand is requested often, the fund will continue to issue shares no matter the number of investors.

No-Load Mutual Fund

A no-load mutual fund in which shares are sold without a commission or sales fee. The notion for this is that the shares are allocated directly by the investment company, rather than going through a alternate party.

Stock Charts

Definition: With stock charts, you can view as much as 20 years of data or as little as a few minutes with a variety of line styles, color pallets and comparison features such as technical indicators.   More Detail: Many web sites that offer stock charts offer advanced features. Some of these features offer  the Read More…

Trading Halts

A Trading Halt is the temporary suspension of trading of a security for a specific period of time. Trading Halts typically last for an hour, but can extend into days.

Time Decay

Time Decay is the inclination for options to decrease in worth as the expiration date draws near. The extent of the time decay is inversely connected to the changeability of that option.

Naked Short Selling

The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but “fail to deliver.”