A reversal is any substantial price movement that occurs against the prevailing trend. Of course this makes any reversal very much in the eye of the beholder, without any strict absolute or proportionate requirements for a price movement to be defined as a reversal, but the general principle of a significant movement against a recognized […]
NASDAQ or National Association of Securities Dealers Automated Quotations is an electronic marketplace that allows buying and selling of securities. Today, this organization also acts as a benchmark index for US technology securities. As an American Securities exchange, it is considered as the second largest marketplace by market-capitalization meaning it trails behind the NYSE. History […]
As one of the largest marketplace in the world, the NYSE allows traders and investors to purchase corporate stocks and other securities. As a security exchange, it lists 82% of S&P 500, 90% of Dow Jones industrial Average and 70 corporations. It is the biggest equities-based marketplace according to total market capitalization for all listed […]
A line chart is the most basic type of trading chart created through the connection of a series of data points with unbroken line(s). It is used in trading and finance to display a series of past and present prices for a single stock symbol or more. A line chart is important to traders and […]
Margin rate is the interest charged by brokers when traders purchase financial instruments like stock on margin and hold it overnight. It may also refer to a fee charged above and beyond the broker’s call rate. In trading, it is common for a trader purchase shares of stock on margin which means they are borrowing […]
A rights offering is an opportunity offered to the shareholders of a company to purchase additional shares typically below the market price and at no cost. In essence, this is a cash call made by the issuer to its existing shareholders thus giving them an opportunity to buy additional shares at a particular share price. […]
A share buyback refers to a process where a company initiates the purchase of its shares thus reducing the outstanding shares in the open market. Also referred to as repurchase, it is a program whereby a company purchases its shares from the marketplace since the management has found out that the shares are undervalued. The […]
An inverted hammer is a technical indicator that is used to identify potential bottoms to downtrends that promise a quick turnaround in the near future. It is the opposite of the widely used hammer indicator, which is employed to identify the top of trends and follows the same basic reasoning. Inverted Hammer Details The inverted […]
CFD account or Contract for Difference refers to an agreement provided in a futures contract which stipulates how differences in a settlement should be completed that is via cash payments and not through delivery of goods or assets. It is considered as one of the easiest methods of settlement since gains and losses are […]
A pump and dump takes place when insiders of a company make false and overly promotional statements about the company in order to temporarily inflate the stock price. The insiders then sell their shares of the stock into the buying, making a profit for themselves. It’s called a pump and dump because the price […]
