StockG.com - Glossary/Index A

Glossary

To understand investing is to be familiar with the terms used. It's like a foreign language. Our favorite site is Investor Words.

Our Glossary/Index
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401K It is a plan offered by a corporation, which allows employees to set aside tax-deferred income for retirement purposes
About Page that tells you about StockG.com
About our Newsletter Page that tells you about our Newsletter
Adobe Analysis dated 10/15/00 on Adobe

ADR: American Depository Receipt. This enables foreign stocks to trade in the US Market. see www.adr.com

Advanced Topics Topics for the advanced investor, including Anomalies, Autex, Block Trades, Clearing, Fair Value, Fix, FX, Fixed Income, Hedge Funds, Instinet, LiquidNet.
Alternative Energy Technology that will bring us unlimited energy at cheap prices and protect the environment at the same time

Amazon.com Our information on Amazon.com

Amazon Price History from Backtester Record of Backtester's simulated trades for Amazon

American Express Our information on American Express

Ask: This is the price you buy your stock at
ASP: Application Service Provider. These are the companies that host web sites, like Exodus.

Awards

List of our awards

B2B: Business To Business. Commonly used with companies like Ariba which allow other companies to buy and sell products usually from suppliers in an online forum
B2C: Internet Business To Consumer company like Amazon.com.
Bashing
: This is going to the message boards and trying to knock down a stock

BDG Fibonacci Strategy

Backtester strategy that uses a Buy/Sell ratio, D for Delta and G for gaps and uses various moving averages from the Fibonacci series.


Bear Raid: When a group of investors get together and take a large short position against a stock

Bear Market: Usually declared when a market is down 20% from it's high value. Can only be determined in hindsight.

Bear Market and Taxes

Bear markets can reduce your taxes buy forcing you into long term holdings

Bear Strategies

Strategies that allow you to make money when the market is going down


Beginner Inexperienced investors.

Bid: This is the price you sell your stock at if you enter a market order.

Biotech Risks Know the risks before investing in Biotech stocks

Bluetooth a technology that allows cell phones, PCs, handheld devices and even your refrigerator to share data together without using wires.

Books Contains a list of our favorite investing books

Bot Technology Are automated tools that help users find information on the internet

Brokers The companies that execute your trades.

Brocade Historical Simulated Trades

View the simulated trades for Brocade from our Backtester Software


Buy Backs This is where a company takes some of their cash and buys back their stock. This is usually a positive signal.

Candlesticks Is a charting mechanism created by the Japanese, where the open and close forms a box called the body. If the close is greater than the open the box is white otherwise black. A narrow line extends above and below the body to the high and low.

CEO The CEO or Chief Executive Officer, is one of the most important parts of a corporation. They are responsible for the profitability of a company. A CEO can be measured on how well the business is growing and how well the stock is doing. Find out as much as you can about this person because he or she (rarely she) will be making many decisions as that affect how your stock performs.

Charles Schwab Information on Charles Schwab
Charts Charts, are the graphs used by technical analysts to determine price trends, support and resistance and other technical indicators.

China Investing

With over 1 billion people, some company will make lots of money here.

Cisco Trade History

Simulated trades from Backtester


Columns Our page consisting of links to various investing columns on the internet.

Companies

Information on various companies

Contact Us You can contact us here

Cool Sites A list of Cool investing sites on the internet.
CPA Death and taxes are the only 2 things guaranteed in life.
Curbs Special Program Trading rules are in affect when the Dow erage moves 170 points higher, or 170 points lower than the previous day's closing price.

Daimler Chrysler Information on Daimler Chrysler

Day Trading Information and links for Day traders
Dead Links Information on links that no longer work or are forwarded somewhere else

Dell Information on Dell Computers

Disclaimer Our disclaimer, basically, we didn't do it, it's your fault, you are responsible.
Disney Information on the Disney Corp.

Dividend: Quarterly payment to shareholders.

Dollar Cost Averaging

Is a method of purchasing a stock by buying it over a period of time instead in one lump sum, which reduces your risk if the stock drops in price, though you may not make as much if the stock goes up. You may not realize it but it is a form of market timing.

Dow Jones Industrial Average: Is an index which tracks 30 of the top US stocks, and is the main index reported in the press. Click here to see its components.


Drips Acronym for Dividend ReIinvestment Plan. This basically allows you to reinvest your dividends to buy more stock.

Due Diligence: Verifying the sources of your information. If you get a tip from someone of a great stock you should verify as much as you can before giving away your hard earned money.
Earnings This is the cash that a corporation has left over after the expenses are subtracted from revenues

ECN Electronic Communication Network. A system that brings buyers and sellers together for the electronic execution of trades.

Education Links to educational stock market information

Email Email us here.

Efficient Market Hypothesis The Efficient Market Hypothesis (EMH) states that a stocks price fully reflects all available information. If the stock market is efficient and current prices reflect all information, then trading stocks in an attempt to outperform the market will be a game of chance rather than skill
EMC Our analysis of EMC, computer storage company from 10/22/00

Equity: Total assets (amounts owned) minus total liabilities (amounts owed); Also called shareholder's equity
Exchanges Our list of Exchanges from around the world

Execute: To execute a trade is to fill it, complete it.
FAQ Our Frequently Asked Question page

Fed The Federal Reserve, the central bank of the United States, was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system

Fiber Optics Another of the new buzzes in the investment world are fiber optics. Instead of wires and electricity, glass and light are used to send data very very fast across networks.


Fixed Income Not as exciting as stocks, a bond is a loan which you lend to the issuer. The issuer will repay the entire loan at some time in the future and will pay you interest during the life of the loan. With stocks you are a part owner and with bonds you are a creditor.

Flipping: When an insider sells their shares of an IPO on the first day of trading.

Foreign Exchange Foreign exchange (FX or Forex) is the buy and selling of currencies in the anticipation of their increase or decrease against another currency. Institutions often hedge out currency risk when they buy non-US stocks. FX is the largest investing market in the world and runs 24 hour a day, 7 days a week.

Fundamental Analysis Fundamental Analysis is the art of analyzing a company based on its financial position, which is the foundation which all companies are built upon. It includes review various financial statements, companies revenues and cash positions. This contrasts with technical analysis which looks at the past price movement of the stock to determine what the future movement of the stock will be.

Futures Futures are obligations to buy or sell a specific product, like wheat, oil, pork bellies, on a specific day for an agreed upon price. Trading futures brings traders together to transfer risk associated with ownership of a commodity or a service. No property rights to a physical commodity change hands at the time the futures contract is entered into. Futures use margin heavily, usually between 2 - 10 percent of a contract is required at time of purchase.


GE Information on General Electric Corp.

George Gilder George Gilder is one of the great technological visionaries, and "the man who put the 's' in 'telecosm'"
Geron Report on Geron dated 9/9/00
Goldman Sachs Information on Goldman Sachs
Gorillas Gorillas refers to big companies who you don't want to mess with. The Microsoft's and Cisco's of the world.

Hedge Funds A hedge fund is basically a mutual fund without any rules. It's usually limited to 100 investors and usually has a minimum investment of $1 million. It uses strategies that aren't available to mutual funds.
Hewlett Packard Information about Hewlett Packard
Home Depot Information on Home Depot

IBM Information on IBM
Indexes Combine a number of stocks to value a market, exchange or sector

Inflation Rising prices can be bad, especially if it becomes hyper-inflation.

Insider Trading There are two varieties of insider trading, legal and illegal. Legal is insider buying shares of their company, and Illegal is someone buying shares based on inside information that they've received.

Instinet: Reuters subsidiary which allows institutions to trade off of the exchange anonymously and without a market maker. Instinet was the first ECN and they do anywhere between 10 - 20% of the volume of the Nasdaq stocks.

Institution: Are entities that have large amounts of money to invest. This includes mutual funds, brokerages, insurance companies, pension funds, investment banks. They account for a majority of the trading volume.

Intel Top Chip producer for computers
International Investing This is investing in stocks out side of the US. It can be useful to reduce you market risk.

Investing Model A model is a simulation of the real thing and an investing model tries to identify a number of variables that correlate well with the increase or decrease of investment value.
Investing Software Information on software that helps you with your investments

Investment Clubs allow investors to minimize risks and share knowledge and to meet other investors

Investor Business Daily Financial Daily newspaper focusing on Investing

Investor Psychology Using group psychology to predict where the market is going

Investor Relations Each listed company has a group that caters to investors and answers questions and deals with the press. They can be a valuable resource.

IPO: Initial Public Offering. It is the initial selling of shares to the public for cash by a company going from private to public
IRA Investment Retirement Account. Allows tax free investment in the stock market.
IXIC Symbol for the Nasdaq index
Java: Programming language developed by Sun Microsystems that is platform independent. It allows the running of Java programs on any hardware as long as there is a Java Virtual Machine available.

JP Morgan

Information about JP Morgan

Juniper

Investment report on Juniper dated 9/17/00
Large Cap: Large Capitalization stock which refers to stock with the large Market Capitalization. Usually a company with more than $10 billion in market cap, or one that's listed on the S&P 500 index.

Links Page of links that we do not necessarily approve of. Follow at your own risk.

Lockup After an IPO, there is a time period called the lock-up period where some stock holders are prohibited from selling their shares for 6 months. You can determine the terms of the lock-up in the "Shares Eligible for Resale" section of the S-1 form filed with the SEC or check with the sites listed below:

Logger Is our productivity and information management tool that has links to the top investing information on the internet and helps you keep a trading diary.
Lucent Investing report on Lucent dated 11/28/00

MACD Up trend: Moving Average Convergence Divergence. This technical analysis indicator uses a fast moving average (12 day) and a slow moving average (26 day). When the fast line moves above the slow line its considered a positive market condition. Clearstation has one of the best charting systems to show the trend. A red circle and arrow on graph, means that the stock is in a downtrend and a green circle and arrow means that the stock is in an up trend. ClearStation's full explanation can be found here.

Market Capitalization: Refers to the dollar value of a companies stock and is calculated by multiplying the current price times the number of outstanding shares of the stock

Magazines Our list of business/investing magazines you may want to look at

Mailing List This is where you can join our mailing list and receive our weekly investing newsletter

Margin Basically borrowing money to buy stock and not recommended.

Margins: Profit Margin - aka Net Margin - shows how much money a company makes for each unit of sales. It is quoted as a percent. It is calculated by Net Income / Sales.; Gross Margin - Gross Income / Sales. Where Gross Income = (Sales - Cost of sales); Pretax Margin - Net Income before Taxes / Sales. NIBT = (Sales - (taxes + interest + depreciation + other)); For margin numbers you must compare the Margin numbers to other companies in the same industry and you want to see if its growing or shrinking
Market Impact Market Impact is the cost of trading that is incurred between the decision point to buy or sell a stock and the actual purchase or sale. The difference in this price in the Market Impact, or how your trade actually impacted the market. In theory, the only way to actually determine your trade's impact would be to have a dual universe in which, one universe you make the trade and the other you don't. The difference in this price would be the actual impact your trade had on the market. The higher percentage of a stocks average daily volume you trade the higher the impact. The opposite of Market Impact is Opportunity Cost.

Market Order: An order placed on the exchange to buy at the Ask or sell stock at the Bid. A market order differs from a Limit Order where you specify the price. With a market order you don't know what price you will buy or sell at.

Market Maker The companies who buy and sell the same stock and profit on the difference in the spread (bid and ask) prices. Since Decimalization they haven't been doing that well.

Market Overview Links to sites that give you an overview of the market

Market Timing The strategy of timing your purchases to maximize you trading profits. Most experts say it can't be done.
McDonalds Information on McDonalds, the number one food company
Media Links to Radio and TV information on investing

Mergers and Acquisitions A merger is where two companies join to become a brand new company and acquisitions is where one company swallows up another company.

Message Boards Message boards are basically places where investors try to find information on their stocks from other investors
Microsoft Information on Microsoft, the number one company developing software
Miscellaneous Miscellaneous web-sites
More Links List of banner links to other investing sites

Monkey We have a Monkey that picks stocks for you

Moving Average Usually used to refer to the Simple Moving Average. There is also the Weighted Moving Average and the Exponential Moving Average. A moving average is the average price of a stock for a certain number of days, usually 200, 50, 21, or 13. This is used to round out price fluctuations and to show a truer direction of the trend.

Mutual Funds Are companies that take funds from a number of investors and invest the money for you usually for a fee.

N - Z

Links