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Trading Glossary
Free Guide to Investment
 
 
 
 
 
Home : Trading Demystified : Trading Glossary
 
 

The financial world has developed a special investment-oriented language to help describe the stock market, investments, securities for the stock market, stock market analysis, and its conditions. At times you may be confronted with a term which is totally alien or has a completely different meaning from what you thought. Misunderstanding these terms can sometimes lead to the wrong conclusion, and that can cost you money!

What you don't know can hurt you.

 

 
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Displaying 1 - 5 of 557
Absolute Breadth Index
A market momentum indicator that measures how much activity, volatility, and change is taking place on the KSE while ignoring the direction prices are headed. High readings indicate above average market activity and change, while low readings indicate lack of change. Historically, values above 450 typically lead to higher prices three to 12 months later. The Absolute Breadth Index is calculated by taking the absolute value of the difference between KSE Advancing Issues and Declining Issues.
 
Accounts Payable
A species of short-term debt, accounts payable are simply bills from suppliers for goods or services purchased on credit. They must be paid within 12 months.
 
Accounts Receivable
Money owed to a business for goods or services purchased on credit. Most businesses extend credit; although restaurants, supermarkets and others are paid on the spot for the things they sell, businesses generally grant 30 days or more to pay. Thus, when a sale is made, a ""receivable"" is recorded in the assets column of the balance sheet. Receivable turnover is an important indicator of how effectively a firm is collecting on its receivables, and whether a cash crisis might be in the offing
 
Accumulated Depreciation and Depletion
The cumulative charges against the fixed assets of a company for wear and tear, obsolescence, or the depletion of a natural resource -- oil in the ground, for instance -- as it is used up.
 
Accumulation And Distribution
A market momentum indicator that associates changes in price with volume. The indicator is based on the premise that the more volume that accompanies a price move, the more significant the price move. When this indicator moves up, it shows that the security is being accumulated (i.e., bought), as most of the volume is associated with upward price movement. When the indicator moves down, it shows that the security is being distributed (i.e., sold), as most of the volume is associated with downward price movement.
 

 
 
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