Market surveillance is the act of prevention and investigation of abusive behavior and manipulation of the market. It helps make sure that the market securities are traded fairly and that market as a whole is orderly. Without surveillance it would be easy to manipulate the market and simulate economic growth. That would lead to the crash of the system.
The process of holding the market includes buying a security in the times of rapid and steep falls in an attempt to hold the price for the security or to provide a necessary support level. It is banned in most markets as it is an unnatural manipulation of the market.
Rain check is a promise from a seller or a buyer of a later commitment. This means that they are going to make a deal just not at a given period of time, but later. The price for the security is going to stay the same though.
Kappa can tell traders and investors how much a security is going to change un price for a given period of time due to different changes even if the underlying price stays the same.
Yellow sheets is a name for the bulletins which contain the info on the price of the corporate bonds in so-called over-the-counter market. Yellow sheets contain info such as closing, opening process, highs and lows and yield.
Price basing is a practice of pricing commodity transactions by basing the price on related futures contracts process. This is a pricing method used by commodity producers, processors and consumers.
Inside day is a type of candlestick pattern that appears after a security experienced a daily price range equal to that of the day before.
Vulture fund is a fund that buys securities in distress times, it often involves purchasing securities which are in the verge of bankruptcy.
Capitulation occurs when investors give up all of the previous earnings by selling the security in the time of losses and declines. It can occur at any given period of time during the decline and during high volume trading.
Registered options trader is a trader who works on a trading floor and whose main task it to watch trading process of several options and to make sure that their trading is fair.
Currency substitution is a process of using a foreign currency instead of the national one in order to conduct all of the legal and governmental transactions. Usually countries using the system do not have an acting Central Bank or money for international trading.
Unseasoned security is s type of asset that hasn’t been in the market for too long and thus it is impossible to predict its future movements and behavior. There is no historic data which traders could rely on in order to predict the movements.
Kamikaze defense is a defense technique used by companies in order to avoid a takeover. It involves inflicting self-harm in order to make themselves look less attractive for a takeover. It is quite a desperate move, but quite effective.
Breakup value is a value of the company is usually counted id the company touches several segments of the market. It is an added value of all of the segment of the publically traded company.
Holing period is a time between purchasing a security and selling it.
Y-Shares are the class of institutional shares which are usually offered by the open-end mutual fund. This class of shares usually demands a very high entry fee – usually starting with $25.000. they usually come with the benefit of waived and limited load charges and lower comparative annual fees.
Recession proof is a term that is used to describe an asset, a company or an industry that can withstand the effects of the recession. Assets that are recession proof are usually included in the portfolio in order to protect it from huge losses as a result of retreats and recessions.
Doctor copper is a joke along name that traders give to copper for its ability to predict reverse points in global economy. It is an ability that copper gained due to its representation in multiple sectors of the economy – from housing development to tech development. This makes demand for copper enormous and thus copper can reflect the climate in world economy very fast.
Net loss can occur when losses exceed the profits and the gains for a certain period of time. Those businesses that go through net loss do not necessarily go bankrupt as they can use their retained earnings or loans in order to stay afloat.
Activity charge is a type of fee that is used to cover the cost of services done on an account. It can be triggered by trader’s activity on a said account or by certain events.