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Wednesday, May 10, 2017

SOME USEFUL TERMS USED IN STOCK MARKETS ALTHOUGH THEY SOUND DIRTY

Image result for STOCK MARKET PICImage result for STOCK MARKET PIC
Here you go:
10. Naked straddle - An options strategy.
9. Short squeeze - When short sellers suffer from upward stock price movements...leading to the short sellers pushing up the price even more by buying shares to cover their short positions. 
8. Broke the buck - When a money market fund's net asset value falls below the $1 a share floor (thus losing investors money some the money they put in)...a very bad thing b/c investors use money market funds for safety.
7. "I'm long." -- male investors only - "long" means to own a position and benefit from upward price movements...as opposed to "short".
6. Synthetic long -- all investors - creating a financial instrument by combining other instruments...frequently seen in options. If the prices don't align, there's an arbitrage opportunity.
5. Annaly Capital - company name...NYSE: NLY
4. In the pink - when you're in a good financial position.
3. Crack spread -- energy investors only - the difference between crude oil prices and its end products (like gasoline) in the futures market.
2. A cup and handle followed by a piercing pattern - Two different technical analysis terms. 
And the number one investing term that sounds dirty is...
1. Pump and dump - A shady practice where folks hype up a company's stock (which they own) and then sell them at the height of the frenzy. This is illegal.

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