Financial markets Financial markets Algorithmic trading is the use of very complex computer programs to trade financial instruments (e.g., stocks, bonds, etc.) in electronic markets. This is useful only in markets that offer some sort of electronic access. ...more on Wikipedia about "Algorithmic trading"
In terms of finance, an allotment is a method of distributing securities to investors when an issue has been oversubscribed. At the end of the subscription period, the demand for a new issue can exceed the number of shares or bonds being issued. In such cases, the underwriting bank allots the securities with the approval of the issuer, either by lottery or on the basis of a formula. An allotment formula usually takes into account the issuer's preferred target investor groups. ...more on Wikipedia about "Allotment (financial)"
In economics, arbitrage is the practice of taking advantage of a state of imbalance between two or more markets: a combination of matching deals are struck that exploit the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state. A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives and currencies. ...more on Wikipedia about "Arbitrage"
Ask price, also called offer price, is a price a seller of a good is willing to accept for that particular good. The term ask price is especially in stock trading to put in contrast to the term bid price The difference between the ask price and the bid price is called spread. ...more on Wikipedia about "Ask price"
A bear market is a prolonged period of time when prices are falling in a financial market. A bear market tends to be accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. The most famous bear market in history was the Great Depression of the 1930s. ...more on Wikipedia about "Bear market"
A bid price is a price offered by a buyer/bidder when he buys a good. The bid price is usually just referred to as the bid. The bid price stands in contrast to the ask price or the offer, and the difference between the two is called the bid/offer spread. ...more on Wikipedia about "Bid price"
The bid/offer spread is the difference between the buying (bid) and selling (offer) price of the same stock or currency transaction. Much of a broker's profit comes from the difference between the bid and offer prices. ...more on Wikipedia about "Bid/offer spread" Don't hesitate to contact stuff on http://www.shortopedia.com
The Bloomberg Terminal is a computer system that enables financial professionals to monitor real-time financial market movement and trades. Most large financial organisations have subscriptions to the Bloomberg service, which costs approximately $1800 per month / per terminal. ...more on Wikipedia about "Bloomberg Terminal"
Bulls and bears are the two main types of speculators in financial markets. Bears (see bear market) think the market in question will fall. Bulls (see bull market) think prices will rise. ...more on Wikipedia about "Bulls and bears"
The capital market is the market for securities, where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission and the Financial Services Authority in the UK, oversee the markets, to ensure that investors are protected against misselling. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded. ...more on Wikipedia about "Capital market"
In banking and finance, clearing denotes all activities from the time a transaction is made until it is finally settled (see settlement). Some of the activities in clearing are reporting/ monitoring, risk margining, netting of trades to single positions, tax handling, and failure handling. Clearing only involves electronic transactions. ...more on Wikipedia about "Clearing (finance)"
A clearing house (or clearinghouse) is an organization affiliated with a securities or derivatives exchange that completes the transactions on that exchange by seeing to validation, delivery, and settlement. ...more on Wikipedia about "Clearing house (finance)"
Convertible arbitrage is a market neutral investment strategy often associated with hedge funds. It involves the simultaneous purchase of convertible securities and the short sale of the same issuer's common stock. ...more on Wikipedia about "Convertible arbitrage"
In business, cornering the market is an illegal attempt to buy up enough of a particular commodity to allow the price to be manipulated. It is also possible to make even more money by buying futures contracts on the commodity, and selling them at a profit after inflating the price. ...more on Wikipedia about "Cornering the market" http://www.shortopedia.com - Go in quickly.
The cost of carry refers to the lost opportunity cost of purchasing a particular security rather than an alternative. For most investments, the cost of carry generally refers to the risk-free interest rate that could be earned by investing currency in a theoretically safe investment vehicle such as a money market account minus any future cash-flows that are expected from holding an equivalent instrument with the same risk (generally expressed in percentage terms and called the convenience yield). Storage costs (generally expressed as a percentage of the spot price) should be added to the cost of carry for physical commodities such as corn, wheat, or gold. ...more on Wikipedia about "Cost of carry"
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In finance, the efficient market hypothesis (EMH) asserts that financial markets are "efficient", or that prices on traded assets, e.g. stock prices, already reflect all known information and therefore are accurate in the sense that they reflect the collective beliefs of all investors about future prospects. ...more on Wikipedia about "Efficient market hypothesis"
Electronic Communication Network is a term used primarily in technology arm of financial and banking institutions, e.g. FX ( Foreign exchange market). An ECN is an electronic channel to market, typically one that is open to access by multiple parties. ...more on Wikipedia about "Electronic Communication Network"
Equity market neutral strategies, associated with hedge fund investing, seek to exploit factors unique to particular stock by staying neutral on factors that reflect broader conditions in the sector, industry, level of market capitalization, country, or region. ...more on Wikipedia about "Equity market neutral"
eTrading (or e-Trading) is how people in the financial services industry refer to electronic trading - i.e. trading securities (such as stocks and bonds), foreign currency, and exchange traded derivatives electronically. ...more on Wikipedia about "ETrading"
Financial instruments package financial capital in readily tradeable forms - they do not exist outside the context of the financial markets. Their diversity of forms mirrors the diversity of risk that they manage. ...more on Wikipedia about "Financial instruments"
In economics, a financial market is a mechanism which allows people to trade, normally governed by the theory of supply and demand, and thereby allocates resources through a price mechanism. It typically involves a bid and ask process. ...more on Wikipedia about "Financial markets"
Financial services is a term used to refer to the services provided by the finance industry. Financial services is also the term used to describe organizations that deal with the management of money. Banks, investment banks, insurance companies, credit card companies and stock brokerages, are examples of the types of firms comprising the industry, which provides a variety of money and investment and related services. Financial services is the largest industry (or industry category) in the world, in terms of earnings; as of 2004, the industry represents 20% of the market capitalization of the S&P 500. ** ...more on Wikipedia about "Financial services"
Fixed income arbitrage is an investment strategy generally associated with hedge funds, which consists of the discovery and exploitation of inefficiencies in the pricing of bonds, i.e. instruments from either public or private issuers yielding a contractually fixed stream of income. ...more on Wikipedia about "Fixed income arbitrage"
The forward market describes the over-the-counter financial market in contracts for future delivery, so called forward contracts. Forward contracts are personalized between parties. The forward market is a general term used to describe the informal market by which these contracts are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange. ...more on Wikipedia about "Forward market" You are visiting www.shortopedia.com Financial_markets
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