N - T Archives - HowTheMarketWorks https://www.howthemarketworks.com/category/glossary/n-t/ Free stock market game with real-time trading and built-in lessons, curriculum, and assessments. Create a custom stock game for your class, club, or friends and learn to invest. Sat, 04 May 2024 22:08:20 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.4 https://www.howthemarketworks.com/wp-content/uploads/2016/12/cropped-touch-icon-ipad-retina-32x32.png N - T Archives - HowTheMarketWorks https://www.howthemarketworks.com/category/glossary/n-t/ 32 32 Robinhood Free Stock: Up to $1,700 in Free Shares https://www.howthemarketworks.com/robinhood-free-stock/ Fri, 19 Apr 2024 19:56:20 +0000 https://www.howthemarketworks.com/?p=16523 Is it worthwhile to use Robinhood for your stock and crypto investments instead of one of the many other investing apps out there? Given that Robinhood has over 23,000,000 users, it must be doing something right. At HowTheMarketWorks, we provide our members with unbiased reviews of investing apps and tools. We do that by using Read More...

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]]> What Is a Short Stock https://www.howthemarketworks.com/short-stock/ Thu, 31 Aug 2017 15:00:28 +0000 https://www.howthemarketworks.com/?p=12009 A short stock is an expression used when you sold shares of a company that you did not own beforehand. Let’s say you expect a stock’s price to drop. Shorting a stock would involve a strategy where you borrow shares from another party (usually a broker) and sell it on the market. Borrowing from a Read More...

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]]> Price Controls https://www.howthemarketworks.com/price-controls/ Wed, 19 Apr 2017 18:53:02 +0000 https://www.howthemarketworks.com/?p=11780 Definition “Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place to prevent the price from getting too low, they are called “Floors”. Price Ceilings Price Ceilings are controls put in place Read More...

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]]> Spending Plan https://www.howthemarketworks.com/spending-plan/ Mon, 04 Apr 2016 22:22:45 +0000 https://www.howthemarketworks.com/?p=11145 A “Spending Plan” is exactly as it says – a plan of what you will be spending each month. There are usually two parts – your “fixed” spending and your “variable” spending. The fixed part is usually the same every month, with things like rent/mortgage payments, grocery bills, insurance, and car payments. The variable part Read More...

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]]> Demand https://www.howthemarketworks.com/demand/ Fri, 15 Jan 2016 21:50:06 +0000 https://www.howthemarketworks.com/?p=10423 Definition In Economics, “Demand” is the relationship between prices and how much people want to buy a good or service. Details As the market price of a good goes up, the amount of that good that people are willing to pay generally goes down. This is because each person puts some value on the good – Read More...

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]]> Supply https://www.howthemarketworks.com/supply/ Fri, 15 Jan 2016 18:44:10 +0000 https://www.howthemarketworks.com/?p=10422 Definition In Economics, “Supply” means the relationship between prices and production. In general, the higher the market price of a good or service is, the more producers are willing to sell of it. Details As the market price for a good goes up, companies want to sell more of it to try to make greater profits. Read More...

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]]> Stock Market Crash of 1929 https://www.howthemarketworks.com/stock-market-crash-of-1929/ Thu, 14 Jan 2016 23:21:30 +0000 https://www.howthemarketworks.com/?p=10348 Definition The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States. Details The stock market crash came in multiple parts – the initial crash on October 28 (a 12.87% drop) continued into October 29 (a 11.73% drop), Read More...

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]]> Reserve Requirement https://www.howthemarketworks.com/reserve-requirement/ https://www.howthemarketworks.com/reserve-requirement/#comments Thu, 14 Jan 2016 13:38:29 +0000 https://www.howthemarketworks.com/?p=10380 Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United States). Details The “Reserve Requirement” is about 10% of all money that has been deposited at a bank. Because of how Read More...

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]]> https://www.howthemarketworks.com/reserve-requirement/feed/ 1 OHLC – Bar Chart https://www.howthemarketworks.com/ohlc-bar-chart/ Tue, 15 Dec 2015 17:00:52 +0000 https://www.howthemarketworks.com/?p=10301 Definition: “OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minute) OHLC are very useful for provide quick visual details, especially for technical analysis. Details on OHLC Charts OHLC charts are also known as Read More...

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]]> What is the New York Stock Exchange? https://www.howthemarketworks.com/what-is-the-new-york-stock-exchange/ Tue, 03 Nov 2015 16:29:20 +0000 https://www.howthemarketworks.com/?p=9989 Definition The New York Stock Exchange (or NYSE) is the largest stock exchange in the world. Think of it as an organized, fast-paced flea market where buyers and sellers from all over the world come to trade U.S. stocks (and now some foreign shares as well). It is where over 2,800 of the biggest U.S. Read More...

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]]> Trailing Orders https://www.howthemarketworks.com/trailing-orders/ Tue, 25 Aug 2015 18:54:06 +0000 https://www.howthemarketworks.com/?p=9045 Definition An order type that allows to set a moving stop or limit target price. The target price moves based on the daily high. Trailing stops can be set either in percentage or in dollars and cents terms. When in dollar terms it will activate when the price has moved by the target you have Read More...

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]]> Risk Level https://www.howthemarketworks.com/risk-level/ Fri, 21 Aug 2015 13:45:43 +0000 https://www.howthemarketworks.com/?p=8919 Definition Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time. Risk Understanding the level of risk you need and want is a very important part of selecting a Read More...

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]]> Stock https://www.howthemarketworks.com/stocks/ Fri, 21 Aug 2015 12:46:13 +0000 https://www.howthemarketworks.com/?p=8912 The post Stock appeared first on HowTheMarketWorks.

]]> Open Interest https://www.howthemarketworks.com/open-interest/ Tue, 04 Aug 2015 21:33:09 +0000 https://www.howthemarketworks.com/?p=8365 Definition Open Interest is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired. Details Think first in terms of options contracts: by owning an option, it signifies that there is interest in actually trading that stock, although at a different price. Since this Read More...

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]]> Pullback https://www.howthemarketworks.com/pullback/ Tue, 04 Aug 2015 18:40:31 +0000 https://www.howthemarketworks.com/?p=8340 A pullback is a technical analysis term used frequently when a stock “pulls” back to a resistance and/or support line, usually after a breakout has occurred. Pullbacks can be in an uptrend or downtrend and can pull back upwards or downwards. In the example below we can see a pullback as it retraces back to Read More...

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]]> S&P 500 https://www.howthemarketworks.com/sp500/ Sun, 26 Jul 2015 13:29:18 +0000 http://virtual-stock-exchange.net/?p=1000 The S&P 500, or the Standard & Poor's 500, is a stock market index based on the common stock prices of 500 top publicly traded American companies, as determined by S&P. It differs from other stock market indices like the Dow Jones Industrial Average and the Nasdaq Composite because it tracks a different number of stocks and weights the stocks differently. It is one of the most commonly followed indices and many consider it the best representation of the market and a bellwether for the U.S. economy.

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]]> Sharpe Ratio (Beginner) https://www.howthemarketworks.com/sharpe-ratio-beginner/ Thu, 16 Jul 2015 12:05:23 +0000 https://www.howthemarketworks.com/?p=7875 Introduction The Sharpe Ratio is an important tool for evaluating a stock, or a portfolio, based on how risky it is to get a higher return. You can use the Sharpe Ratio to determine how consistent the returns of a stock or portfolio are, so you can determine if the returns are stemming more from Read More...

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]]> OTC (Over The Counter) Stocks https://www.howthemarketworks.com/oct-over-the-counter-stocks/ Fri, 15 May 2015 22:40:33 +0000 https://www.howthemarketworks.com/?p=7225 Over-The-Counter (OTC) Stocks Most investors are familiar with NASDAQ, the NYSE (New York Stock Exchange), TSX (Toronto Stock Exchange), and most other large national stock exchanges. However, there are also thousands of companies that want to sell shares to the general public, but are not able to sell on these exchanges. Stock traded on these Read More...

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]]> Technical Analysis Software https://www.howthemarketworks.com/technical-analysis-2/ Sun, 02 Nov 2014 08:58:39 +0000 http://staging.www.howthemarketworks.com/?p=2687 Technical analysis software automates the charting, analysis and reporting functions that support technical analysts in their review and prediction of financial markets (e.g. the stock market).

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]]> Price Ceilings https://www.howthemarketworks.com/price-ceilings/ Thu, 13 Jun 2013 13:36:50 +0000 https://www.howthemarketworks.com/?p=6132 Price ceiling is a government-mandated limit on the price that can be charged for a given product, such as a utility or electricity. The intended purpose of a price ceiling is to protect the consumers from conditions that would make a vital product from being financially unattainable for consumers.

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]]> Poison Pill https://www.howthemarketworks.com/poison-pill/ Thu, 13 Jun 2013 13:25:33 +0000 https://www.howthemarketworks.com/?p=6127 A “Poison Pill” creates a strong defense mechanism for a “targeted takeover company” allowing the company to properly identify legitimate and beneficial acquisitions and weed out the actions of corporate raiders. The “Poison Pill” is also useful in slowing down the speed of potential raids.

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]]> Straddles https://www.howthemarketworks.com/straddles/ Tue, 11 Jun 2013 16:02:18 +0000 https://www.howthemarketworks.com/?p=6120 A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock.

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]]> Oligopoly https://www.howthemarketworks.com/oligopoly/ Tue, 11 Jun 2013 15:52:29 +0000 https://www.howthemarketworks.com/?p=6116 An oligopoly is characterized by a small number of sellers who dominate an entire market.

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]]> Straight Line Depreciation https://www.howthemarketworks.com/straight-line-depreciation/ Fri, 03 May 2013 15:52:54 +0000 https://www.howthemarketworks.com/?p=5960 Straight line depreciation is the most commonly used and simplest form of depreciation.

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]]> Shadows https://www.howthemarketworks.com/shadows/ Mon, 22 Apr 2013 20:26:18 +0000 https://www.howthemarketworks.com/?p=5871 A small line (like a candle wick) found at the top or bottom of an individual candle in a candlestick chart.

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]]> Resistance Line https://www.howthemarketworks.com/resistance-line/ Sat, 13 Apr 2013 18:52:44 +0000 https://www.howthemarketworks.com/?p=5811 A point or range in a chart that caps an increase in the price of a stock or index over a period of time. An area of resistance, resistance line or resistance level indicates that the stock or index is finding it difficult to break through it, and may head lower shortly. The more times that the stock or index tries unsuccessfully to break through the resistance line, the stronger that area of price resistance becomes.

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]]> Price to Sales (P/S Ratio) https://www.howthemarketworks.com/price-to-sales-ps-ratio/ Sun, 07 Apr 2013 07:24:00 +0000 https://www.howthemarketworks.com/?p=5770 The price-to-sales ratio (Price/Sales or P/S) provides a simple approach: take the company's market capitalization (the number of shares multiplied by the share price) and divide it by the company's total sales over the past 12 months. The lower the ratio, the more attractive the investment.

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]]> Stagflation https://www.howthemarketworks.com/stagflation/ Fri, 05 Apr 2013 20:29:21 +0000 https://www.howthemarketworks.com/?p=5700 High inflation and high unemployment occurring simultaneously.

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]]> Return on Equity https://www.howthemarketworks.com/return-on-equity/ Thu, 28 Mar 2013 23:34:17 +0000 https://www.howthemarketworks.com/?p=5577 Return on Equity (ROE) is used to measure how much profit a company is able to generate from the money invested by shareholders.

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]]> Price to Earnings Growth (PEG) https://www.howthemarketworks.com/price-to-earnings-growth-peg/ Thu, 28 Mar 2013 23:28:43 +0000 https://www.howthemarketworks.com/?p=5573 Price to Earnings is the most usual way to compare the relative value of stocks based on earnings since you calculate it by taking the current price of the stock and divide it by the Earnings Per Share (EPS).

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]]> Stock Volatility https://www.howthemarketworks.com/stock-volatility-information/ Thu, 28 Mar 2013 22:49:28 +0000 https://www.howthemarketworks.com/?p=5567 Stock volatility information can be used in many different ways but here is a quick and easy bit of stock volatility information that you can begin using today.

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]]> Stock Exit Strategies https://www.howthemarketworks.com/stock-exit-strategies/ Thu, 28 Mar 2013 22:45:52 +0000 https://www.howthemarketworks.com/?p=5565 It is impossible to predict what the market will do today, tomorrow or next year, but there is one thing that is definite: markets go up, they go down, and they stay the same.

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]]> Systemic Risk / Market Risk https://www.howthemarketworks.com/market-risk-or-systemic-risk/ Mon, 25 Mar 2013 21:06:21 +0000 https://www.howthemarketworks.com/?p=5516 Market risk is a measure of how much of a loss an investor is facing while trading.

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]]> Timing System https://www.howthemarketworks.com/timing-system/ Sat, 23 Mar 2013 20:04:59 +0000 https://www.howthemarketworks.com/?p=5503 Everywhere you turn there is another proprietary stock market timing system being sold. Let's take a few minutes to review these claims against common sense.

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]]> Offer Price https://www.howthemarketworks.com/offer-price/ Sat, 23 Mar 2013 19:56:56 +0000 https://www.howthemarketworks.com/?p=5501 It is only an offer and will not be accepted if the seller is not willing to let go at the offer price. This offer price pertains to all traded investments.

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]]> Spread https://www.howthemarketworks.com/understanding-bid-and-ask-price/ Sat, 23 Mar 2013 19:52:15 +0000 https://www.howthemarketworks.com/?p=5499 The difference between the ask price and the sell price is called the “spread” and it is kept by the broker.

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]]> Stock Symbols https://www.howthemarketworks.com/stock-symbols/ Sat, 23 Mar 2013 18:37:01 +0000 https://www.howthemarketworks.com/?p=5493 If you are brand new to investing then take time to understand what you are reading when viewing a Stock Exchange Symbol and learn Stock Market Investing Basics.

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]]> Risk Management https://www.howthemarketworks.com/introduction-to-stock-trading-risk-management/ Sat, 23 Mar 2013 18:07:05 +0000 https://www.howthemarketworks.com/?p=5483 Many people start trading stocks and never learn about stock trading risk management. The one's that do learn, usually learn after they have been trading for a while, not before they start trading.

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]]> REITs https://www.howthemarketworks.com/investing-in-real-estate-through-reits/ Sat, 23 Mar 2013 17:39:05 +0000 https://www.howthemarketworks.com/?p=5481 A REIT or Real Estate Investment Trust may be the perfect investment vehicle. REITs own, and often operate, real estate but are publicly traded like stock.

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]]> Stock Index https://www.howthemarketworks.com/stock-index/ Sat, 23 Mar 2013 16:01:55 +0000 https://www.howthemarketworks.com/?p=5460 By measuring the compilation of similar stocks instead of just one or two stocks, a stock index provides information about that particular market or segment.

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]]> Seasonal Indicators https://www.howthemarketworks.com/seasonal-indicators/ Tue, 12 Mar 2013 20:32:06 +0000 https://www.howthemarketworks.com/?p=5282 Many stock analysts have identified market trends related to specific times of the year. The success ratios of these trends are often far stronger than most other indicators.

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]]> Sole Proprietorship https://www.howthemarketworks.com/sole-proprietorship/ Thu, 07 Mar 2013 22:41:05 +0000 https://www.howthemarketworks.com/?p=5196 Simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. In a sole-proprietorship there is no legal distinction between the assets and liabilities of a business and those of its owner. It is by far the most popular business structure for startups because of its ease of formation, least record keeping, minimal regulatory controls, and avoidance of double taxation.

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]]> Retained Earnings https://www.howthemarketworks.com/retained-earnings/ Thu, 21 Feb 2013 16:22:35 +0000 https://www.howthemarketworks.com/?p=5107 Retained earnings is calculated by adding net income to (or subtracting any net losses from) the beginning retained earnings and then subtracting the dividends that were paid to shareholders

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]]> S Corporation https://www.howthemarketworks.com/s-corporation/ Thu, 07 Feb 2013 19:55:38 +0000 https://www.howthemarketworks.com/?p=4889 One of the ways to define a corporation. S Corporations are allowed by the IRS for most companies with less than 75 shareholders.

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]]> National Debt https://www.howthemarketworks.com/national-debt/ Wed, 06 Feb 2013 19:05:15 +0000 https://www.howthemarketworks.com/?p=4875 The total amount that the federal government has borrowed including internal debt (borrowed from national creditors) and external debt (borrowed from foreign creditors).

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]]> Stop Limit https://www.howthemarketworks.com/stop-limit/ Wed, 06 Feb 2013 01:27:27 +0000 https://www.howthemarketworks.com/?p=4872 A Stop Limit is an order that combines the features of stop order with the features of a limit order. A stop limit order executes at a specified price (or better) after a specified stop price is reached. After the stop price is reached, the stop limit order becomes a limit order to buy (or sell) at the limit price or better.

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]]> Sherman Antitrust Act https://www.howthemarketworks.com/sherman-antitrust-act/ Fri, 25 Jan 2013 22:50:31 +0000 https://www.howthemarketworks.com/?p=4749 US federal legislation of 1890 that prohibited the creation of monopolies by outlawing direct or indirect attempts to interfere with the free and competitive nature of the production and distribution of goods. Amended by the Clayton Act of 1914. Also called Sherman Act.

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]]> Support and Resistance https://www.howthemarketworks.com/support-and-resistance/ Wed, 09 Jan 2013 22:32:06 +0000 https://www.howthemarketworks.com/?p=4039 Resistance and support levels are widely used by experienced traders to formulate trading strategies. For example, if a stock is approaching a very strong resistance level, a trader may prefer to close the position rather than take the risk of a significant decline if the stock uptrend reverses.

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]]> QuantShare https://www.howthemarketworks.com/quantshare/ Mon, 10 Dec 2012 23:19:08 +0000 https://www.howthemarketworks.com/?p=3097 The Most Powerful and Complete Trading Software Quantshare is a desktop application that allows trader to monitor and analyze the market.  You can display charts, add indicators, create watchlists, create trading strategies, backtest these strategies, create portfolios based on these strategies…  QuantShare is suitable for all levels of traders and it works with U.S. and Read More...

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]]> Stock Picking Software https://www.howthemarketworks.com/stock-picking-software/ Fri, 02 Nov 2012 08:27:35 +0000 http://staging.www.howthemarketworks.com/?p=2702 Stock Picking Software automates the task of identifying the best stocks and the best time to buy those stocks. This software can sometimes be programed by the user and sometimes comes pre-programmed by the manufacturer to identify the right buying opportunities and the right timing.

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]]> Order Types https://www.howthemarketworks.com/order-types/ Sun, 14 Oct 2012 21:05:33 +0000 http://virtual-stock-exchange.net/?p=2180 Order Types offered in our Stock Market Game: Market Orders, Limit Orders, Stop Market Orders, Stop Limit Orders and Trailing Stop Orders

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]]> Order https://www.howthemarketworks.com/stock-order/ Sun, 14 Oct 2012 17:10:59 +0000 http://virtual-stock-exchange.net/?p=2145 An investor's instructions to a broker or brokerage firm to purchase or sell a security. Orders are typically placed over the phone or online. Orders fall into different available types which allow investors to place restrictions on their orders affecting the price and time at which the order can be executed.

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]]> Penny Stocks https://www.howthemarketworks.com/penny-stocks/ Sun, 14 Oct 2012 01:33:19 +0000 http://virtual-stock-exchange.net/?p=2129 Penny stocks are stocks with a share price of $5 or less.

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]]> Open End Mutual Funds https://www.howthemarketworks.com/open-end-mutual-funds/ Sat, 06 Oct 2012 18:13:33 +0000 http://virtual-stock-exchange.net/?p=1768 An open end mutual fund don't have limits on the quantity of shares the fund will issue. Provided that demand is requested often, the fund will continue to issue shares no matter the number of investors.

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]]> No-Load Mutual Fund https://www.howthemarketworks.com/mutual-fund-no-load/ Sat, 06 Oct 2012 20:51:51 +0000 http://virtual-stock-exchange.net/?p=1737 A no-load mutual fund in which shares are sold without a commission or sales fee. The notion for this is that the shares are allocated directly by the investment company, rather than going through a alternate party.

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]]> Stock Charts https://www.howthemarketworks.com/what-is-a-stock-chart/ Wed, 03 Oct 2012 22:24:31 +0000 http://virtual-stock-exchange.net/?p=1526 Definition: With stock charts, you can view as much as 20 years of data or as little as a few minutes with a variety of line styles, color pallets and comparison features such as technical indicators.   More Detail: Many web sites that offer stock charts offer advanced features. Some of these features offer  the Read More...

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]]> Getting and Understanding Stock Quotes https://www.howthemarketworks.com/stock-quotes/ Wed, 03 Oct 2012 21:50:24 +0000 http://virtual-stock-exchange.net/?p=1518 A stock quote is a list of prices (generally bid, ask and last) for a stock at a particular point during the trading day. Stocks used to be quoted in fractions, but now most exchanges use decimals.

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]]> Trading Halts https://www.howthemarketworks.com/trading-halts/ Fri, 28 Sep 2012 21:01:03 +0000 http://virtual-stock-exchange.net/?p=1225 A Trading Halt is the temporary suspension of trading of a security for a specific period of time. Trading Halts typically last for an hour, but can extend into days.

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]]> Time Decay https://www.howthemarketworks.com/time-decay/ Fri, 28 Sep 2012 20:50:10 +0000 http://virtual-stock-exchange.net/?p=1221 Time Decay is the inclination for options to decrease in worth as the expiration date draws near. The extent of the time decay is inversely connected to the changeability of that option.

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]]> Sharpe Ratio (Advanced) https://www.howthemarketworks.com/sharpe-ratio/ Fri, 28 Sep 2012 15:29:07 +0000 http://virtual-stock-exchange.net/?p=1217 A Sharpe Ratio calculates the extra return you make compared to the extra risk you take on.

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]]> Naked Short Selling https://www.howthemarketworks.com/naked-short-selling/ Thu, 27 Sep 2012 23:07:23 +0000 http://virtual-stock-exchange.net/?p=1161 The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but "fail to deliver."

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]]> Short Proceeds https://www.howthemarketworks.com/short-proceeds/ Wed, 26 Sep 2012 16:09:34 +0000 http://virtual-stock-exchange.net/?p=989 The cash received from the short sale of a security. The interest return from investment of the short proceeds is usually divided between the short seller, who gets partial “use of proceeds,” and the securities lender.

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]]> Stock Order Term https://www.howthemarketworks.com/order-term/ Wed, 26 Sep 2012 14:55:14 +0000 http://virtual-stock-exchange.net/?p=975 Video explaining the time period over which an order that you are placing is valid.

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]]> Selling Short https://www.howthemarketworks.com/selling-short/ Wed, 26 Sep 2012 01:46:50 +0000 http://virtual-stock-exchange.net/?p=963 In finance, short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments, with the intention of subsequently repurchasing them ("covering") at a lower price. In the event of an interim price decline, the short seller will profit, since the cost of repurchase will be less than the proceeds received upon the initial (short) sale. Conversely, the short seller will incur a loss in the event that the price of a shorted instrument should rise prior to repurchase.

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]]> Stop Loss Order https://www.howthemarketworks.com/stop-loss-order/ Tue, 25 Sep 2012 02:23:28 +0000 http://virtual-stock-exchange.net/?p=898 An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position.

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]]> P/E Ratios https://www.howthemarketworks.com/pe-ratio/ Mon, 24 Sep 2012 21:43:23 +0000 http://virtual-stock-exchange.net/?p=882 The price to earnings ratio is a useful tool but certainly not the holy grail of investing as it is sometimes made out to be.

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]]> Preferred Stock https://www.howthemarketworks.com/preferred-stock/ Tue, 25 Sep 2012 00:32:55 +0000 http://virtual-stock-exchange.net/?p=873 Preferred stock is a special class of stock issued by a company that pays dividends. Preferred stock is more like a bond than true stock because the main appeal is dividend income. Most preferred stocks are limited in the total profit they can earn.

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]]> Ticker Symbol https://www.howthemarketworks.com/ticker-symbol/ Tue, 25 Sep 2012 00:24:45 +0000 http://virtual-stock-exchange.net/?p=866 Three or four characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors use to place trade orders. Every listed security has a unique ticker symbol, facilitating the vast array of trade orders that flow through the financial markets every day.

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]]> Technical Analysis https://www.howthemarketworks.com/technical-analysis/ Mon, 24 Sep 2012 03:06:05 +0000 http://virtual-stock-exchange.net/?p=765 Technical Analysis is the use of technical indicators comprising of statistics using past market information to predict which direction the security price will move.

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]]> Trailing Stop https://www.howthemarketworks.com/trailing-stop/ Mon, 24 Sep 2012 05:53:59 +0000 http://virtual-stock-exchange.net/?p=760 Trailing Stop is a Stop Loss order which is placed as a percentage value as opposed to an absolute dollar value. The order will only execute if the price of the security falls by a certain percentage. The trailing stop adjusts automatically as the price of the security rises and bases itself on the new appreciated value. This type of order allows profits to be made while cutting losses simultaneously.

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]]> Total Asset/Equity Ratio https://www.howthemarketworks.com/asset-to-equity-ratio/ Sun, 23 Sep 2012 18:56:24 +0000 http://virtual-stock-exchange.net/?p=688 Asset/Equity Ratio is the ratio of total assets divided by stockholders' equity.

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