An order to make sure the entire amount of the order is filled or none of it. This differs from "Fill or Kill" orders because "All or None" orders do not require immediate execution.
Portion of the return on an asset (or group of assets) that depends neither on its specific characteristics nor on market fluctuations. Alpha therefore measures the expected return on an asset (or group of assets) when the market (or benchmark) is totally flat. The higher the alpha, the less the performance of an asset or group of assets depends on the market.
A simultaneous buy and sell transactions by taking advantage of price’s differentials in two or more markets. It consists in buying securities or currencies in markets where the price is lower and selling them where the price is higher.
The price at which a trader or marketmaker is willing to sell. See also Bid and Spread.
Option or warrant with an exercise price equal to the current market price of the underlying asset. See also In-the-money and Out-of-the-money
A period of time during which an auction is in operation. This includes the auction call and any extensions to the auction. The auction period ends with an auction match.
One-hundredth of a percentage point (0.01%). For example, the difference between 5.25% and 5.50% is 25 basis points.
A term to describe a market of declining prices. See also Bull market.
Standard gauge against which the performance of a given security can be measured. Indices are often used as a benchmark.
A measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower risk than the market; a beta of more than one indicates higher risk than the market. It is important to choose the right index to measure the overall market performance.
The price at which a trader or market maker is willing to buy. See also Ask and Spread.
A term used to describe large, well-known companies that offer stable earnings and consistent dividend record. Blue-chip companies are reputed to be reliable investments.
Bonds are fixed-income financial instruments, issued by governments, local authorities and state-owned or private organizations. They may be listed or traded in one or several exchanges, and ensure predetermined levels of returns in the form of interest rate. Interest rates may remain fixed throughout the bond’s life or vary according to the bond’s terms of listing.
An individual or firm, acting as agent, that exectutes orders to buy or sell on behalf of a client. A broker charges a commission for his service and must be a registered member of the exchange where the securities are traded.
A condition of the stock market when prices of stocks are generally rising. See also Bear Market.