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
- A
B C D E
F
G H I J K
L M N O
P Q
R S
T U
V W
X Y Z
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- A - M
- Nasdaq
- National Association of Security Dealers Automated Quotes.
The exchange where most technology stocks are listed, like Microsoft, Intel,
Cisco,
Yahoo.
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- New
- Click here to see what's new on StockG.com
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- News
- Links to various investing news sites on the interenet
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- New
Sites
- Miscellaneous investing sites that we haven't yet reviewed
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- Newsletters
- Our list of links to investing newsletter's on the Internet
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- Between 9/9/00 and 11/26/00 we published 12 newsletters,
view them here and sign up for
our new newsletter
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- New
Stock Ideas
- List of places on the internet to get new ideas for stock
purchases
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- Nordstrom
- Information on Nordstrom the retailer
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- Nortel
- Information on Nortel Corp.
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- Opportunity
Cost
- Is the theoretical cost incurred by missing out on a trading
opportunity. Say you were going to buy IBM at $100, but you didn't
execute the trade for whatever reason and the price goes up to
$110. Your opportunity cost is the number of shares you didn't
execute times the price difference.
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- Option Articles
- List of articles relating to options
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- Options
- Information and links on Options. Options are the right to
buy or sell (but not the obligation) to purchase shares of a
company's stock at a certain price in the future.
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- Oracle
- Information on the number 1 database company
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- Our
Picks
- You can view Today's
Picks and our previous
picks
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- Overhead Volume
- A stock that has reached a new high has no Overhead Volume,
that is volume that will try to sell to recoup a loss. When
a new high is hit, there are no sellers waiting to get out because
they finally broke even.
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- PDA
- Small handheld computer called a Personal Digital Assistant,
supports Calendar, address book, To do list type functions. Can
share data with a PC and some can access the internet.
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- P/E Ratio
- Price to Earnings ratio. It is calculated by taking the price
per share of the stock and dividing it by the earnings per share
for the previous 4 quarters. Probably the most common fundamental
indicator in use.
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- Penny
Stocks
- Stocks trading less than $1.00 and very very risky.
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- People
- People in the Investment Press
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- Picks
- Links to others stock picks
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- Portfolio
- Links to tools that help you manage your portfolio of stocks
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- Previous Picks
- See how Backtester's previous picks have done
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- Price/Book ratio (P/B)
- Price of a stock divided by its book value. Growth stocks
have high, value stocks have low. Under 1 means the assets of
the company is worth more than the stock
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- Price to Sales ratio (P/S)
- The Price to Sales ratio is the Market
Cap of a stock divided by the sales. If a companies Market
cap is $500 Million and they have $250 Million in sales, then
the prices to sales ratio is 2. Under valued stocks usually have
a P/S < 1. The P/S can be viewed in Yahoo Profile. Click here for IBM's P/S
from Yahoo Finance.
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- Psychology
- Using group psychology to predict where the market is going
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- Pundits
- These are the "experts" who tell you what to buy
and sell. Listen to them at your own risk.
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- Qualcomm
- Report on Qualcomm dated 10/8/00
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- Quick Research
- Our Quick Research tool gives you quick access to some of
the best investing sites on the internet in one easy to use location
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- Quick
Research Help
- Describes how to use our Quick Research tool
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- Quick Review
- Able to quickly review content on other investing websites
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- Quotes
- Links to sites that provide stock quotes
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- Recommended
Sites
- A list of sites we like.
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- Research
- Links to sites to help you research a stock
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- Risk
- Also know as standard deviation. It's how much your
portfolio will fluctuate between gains and losses. The
higher the risk of your stocks, the harder it is to sleep at
night. A risky portfolio may outperform a less risky portfolio,
but the ups and downs will be more exaggerated also.
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- Roth IRA
- IRA is an Individual Retirement Account. This account allows
you to invest about $2,000 per year tax free and accumulate returns
on a tax free basis. You pay taxes only when you take out the
money starting at age 59 and ending by age 75. You pay your marginal
rate on this money. The Roth IRA allows you to invest the $2,000
after taxes are taken out and accumulate the returns tax free.
You don't have to pay any taxes on the money when you take it
out as long as you're older than 59 1/2.
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- S&P 500
- Standard
and Poors 500 stocks, is the main benchmark that fund managers
compare their returns to.
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- SG&A
- Selling, General and Administrative Expenses is a balance
sheet item which contains salaries, commissions, and travel expenses
for executives and salespeople, advertising costs, and payroll
expenses.
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- Search
- Place to search our site for what you're looking for
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- SEC
- The SEC, Security Exchange Commission, the primary mission
is to protect investors and maintain the integrity of the securities
markets.
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- Secondary Offering
- After the IPO, some companies need more cash, so they can
have a secondary offering, where more shares are sold to the
public.
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- Settings
- Place to maintain settings within StockG.com, including your
startup page, news, broker, portfolio, refresh information.
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- Sherlund,
Richard
- Stock Analyst for Goldman Sachs, who monitors tech stocks
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- Short
- to short is to bet the the market will go down in price.
You do this by first borrowing stock from your broker and
selling it say at $100. If the price goes down to
$90, you can then "buy to cover" your short.
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- Small
Cap
- Stocks with a market cap of under $1 billion
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- Software Security
- How do you keep your computer safe from intruders?
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- Sony
- Information on Sony, the number 1, electronics manufacturer
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- Spread
- Is the difference between the Ask
and the .Bid
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- Statistics
- Information and links on statistics. Since much of the investing
wisdom is derived from statistics, this is an important subject
to master
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- Stock
Fraud
- Information and likns of fraudualent nature in the stock
market
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- Stock Picks
- Find out stock picks from other investing sites
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- Stock
Split
- Information and links related to stock splits. A stock split
is used by a corporation usually to reduce the price of a stock
so more retail investors can easily purchase the stock. A stock
split is usually seen as a very positive event. In actuallity
it is meaningless. It's like taking a pizza pie, that has 8 slices
and slicing them in half so you have 16 slices and charging half
the price for a single slice.
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- Stock
Wizard
- is our tool that tries to impart some market wisdom to you
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- Store
- The place where you can purchase stuff through us from our
affiliation with a number of companies
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- Strategies
- If you look at the stock market as a game, here you can find
strategies on how to win the game.
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- Support
and Resistance
- Technical Aanlysis term identifying price levels that a stock
has trouble breaking through, (resistance) and a price where
a stock has trouble falling below (support)
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- Taxes
- Information related to taxes in the stock market
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- Technical
Analysis
- The theory is that price movement
is repetitive and follows standard patterns. Pure TA traders
aren't interested in the fundamentals
of a company, just what the chart is saying. This is because
a company with good fundamentals, may not be recognized and rewarded
by Wall Street due to investor psychology. TA takes investor
psychology into account. Statements like "the trend
is your friend" is purely from a TA point of view. The
purpose of Technical Analysis is to predict the future movement
of a stock based on its past performance.
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- Technology
- Links to technology information on the web in 3 categories
of Computers, biotech and nanotech
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- Tick
Data
- Links to where you can get tick data. Tick data is the collection
of all trades for a stock
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- Todays Articles
- Links to interesting investment articles on the web
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- Tools
- Links to tools for investing on the internet
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- Top
Sites
- Links to the top investing sites on the internet
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- Tracking
Stock
- Is a mechanism where a company can unlock hidden value of
some underlying asset that they owe, by issuing stock from some
portion of a company. AT&T recently 4/27/00, IPO'd their
wireless division as a tracking stock.
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- Trade
- This facility allows you to link to the broker of your choice
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- Trade
Shows
- Links to upcomming investing trade shows
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- Transaction
Costs
- Is the costs associated with buying and selling stocks. Commissions
are obvious costs. When you buy stocks your broker will normally
charge you for this service. There is also Spread costs, which
is what bookies call the "vig," it's the difference
between the bid and the ask. When you buy or sell a stock, with
a market
order, you normally buy it at the ask and sell at the bid.
This difference is a cost to you. For example if IBM is trading
at 107 1/4 that is the "last price" but not the price
you will pay to buy it. If the bid is 107 1/8 and the ask is
107 3/8, you will pay 107 3/8 to buy the stock, that is if your
order was executed immediately. That's a .25 cost per share.
This cost doesn't seem much in this example but for 100 shares
this is a $25 cost. For low priced stocks a 1/8 of a point spread
for a $5.00 stock is a 2.5% cost to you. If you were to buy 2,000
shares, the cost would be $1250. Market Impact is another cost
which is incurred mostly by institutions
which are buying or selling large blocks of stock. This cost
can affect you if you are taking a large position in a thinly
traded stock. Opportunity Cost is a lost opportunity to you.
If you wanted to buy a stock at $20 and the price moved away
from you, you have lost an opportunity. Trade Execution cost
is a timing cost which reflects on how quickly you can execute
a trade at the market price or does the price move on you. Another
cost is Taxes which if you are taking short term gains, can eat
away 39% of your profits as opposed to 20% if you hold the stock
for one year.
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- Treasury
Bills
- Information and links on Treasury Bills. These are short
term bonds issued by the US government
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- Underwriters
- Underwriters are the companies that take other companies
public
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- Video on Demand
- Links to sites that have Video on Demand content
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- When
to Sell
- Information on when you should sell a stock
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- Web masters
- Information and resources for webmaster, the people who build
and maintain websites
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- Yield
- Is the return on your investment. If you buy a $100 stock
and you receive $10 in dividends per year, your yield is 10%
Links