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 29
Daily Volume
Daily volume is one indicator of how liquid a security is. A low daily volume could imply low interest in a stock, a limited float (number of shares outstanding) and/or a highly volatile share price, since even relatively small trades will have an exaggerated effect. Low-volume stocks, also known as thinly traded, generally are seen as riskier than more heavily traded shares. Pay special attention to changes in volume; a sudden increase may mean news about the company has just been issued -- or is foreseen by those in the know.
Day's High
The highest price of the security during the current day's trading. By checking this in relation to the low, you can get an idea of how much the stock is fluctuating
Day's Low
The lowest price of the security during the current day's trading. By comparing to the high, you can get an idea of how much the stock is fluctuating.
Debenture
A bond issued without specific security. In the event of a crisis, holders of debentures take a back seat to other bondholders. To compensate for the added risk, debentures usually pay higher interest than secured bonds, or offer conversion to common stock
Debit Spread
A strategy where the investor buys a call (put) and sells a further out-of-the-money call (put) to create a spread with an initial debit in the investor's account. This is a conservative approach to trading options as it limits both the risk and reward relative to a straight option purchase.
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!
