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About Yalicoo What is Yalicoo Y
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Glossary
Accumulation
Buying
additional shares of a stock you already own over a period of time.
American
Stock Exchange (AMEX)
The
American Stock Exchange was founded in 1842 in New
York City,
and
is one of the three major stock exchanges in the U.S.
along with the New York Stock Exchange and the Nasdaq.
Analyst
A
financial professional who analyzes securities in order to determine
their investment feasibility.
There
are analysts working for investment banks and brokerages which sell or
publish their analysis, and analysts who work for mutual fund
companies or institutions that use the analysis to make investment
decisions for the funds they manage.
Ask
The
price at which a prospective seller is willing to sell a security.
Asset
All
the company’s property that has value. The assets are
presented on the balance sheet, and include tangible assets like
plant,
buildings,
cash, securities, and also intangibles, like goodwill.
Asset
allocation
Dividing
investment money among various asset types, typically among cash
investments, bonds, and stocks,
in
order to increase profitability and lower the risk involved in these
investments.
Bear
market
A
period of time in which most of the market loses value. Usually, market
which falls above 10% is defined as a bear market trend.
Bid
The price a prospective
buyer is willing to pay for a security.
Blue-chip
stocks
Originally
comes from the blue colored poker chips,
it
refers to very good and large companies that operate long enough in the
market and tend to pay regular dividends to their
shareholders.
Few
examples are Coca-Cola, IBM, General Electric, and Nike.
Bond
Bonds
are loans given by the investor to the issuer in return for interest
payments (coupon). In simple words,
the
investor loan the issuer, which is the government or a cooperation, a
specific amount of money (face amount),
and
receive his money back at the maturity date. During this
period,
at
a predetermined dates (the coupon dates) the issuer also pays the
investor interest payments (coupon) on the loan.
Broker
(Brokerage)
An
individual or a firm which sell financial products for
investors.
Private
investors need a broker to execute their orders. In return, the broker
charge commissions for executing their buy or sell orders.
Bull
market
A
market that has been gaining value over a long period of time.
It’s the opposite of a bear market.
Buy
and hold
A
passive investing strategy in which an investor buys shares of
companies with the intention of keeping those holdings for a long
time,
without
paying attention to the market short term fluctuations.
Commission
A
fee charged by a broker for executing securities transaction. This fee
is charged for every trade, buy or sell, that you perform.
Commodities
Markets
Goods
such as silver, gold and other precious metals, minerals, corn, cattle,
and other elements traded in large amounts on a commodities exchange.
Common
Stock
See
stock.
Daily
high
The
highest price reached by a security during a given day.
Daily low
The
lowest price to which a security dropped during a given day.
Day
trader
Investors
who trade many times during the day and usually don’t hold a
position in any stock overnight.
Debt
An
amount of money owed to a person or
organization for funds borrowed. Debt can be represented by a loan,
bond,
mortgage
or other form stating repayment terms and is usually carries interest
requirements.
Derivatives
A
financial contract whose value is "derived" from another security, such
as stocks, bonds, commodities, or a market index.
The
most common types of derivatives are options and futures.
Diversification
Investing
in various asset types, such as stocks, bonds, and cash equivalents or
investing in stocks
of different companies in order to lower the overall investment risk.
Dividends
The
excess profits a company earn, can either reinvested in the business or
be paid to the company’s shareholders.
Each
shareholder receives an amount proportional to its share from the
entire company’s equity.
Dividend yield
The annual percentage
rate of return paid in dividends on each share of stock.
The
yield can be calculated by dividing the annual dividend by the current
share price of the stock.
Earnings
per share (EPS)
A
company's net profit divided by the number of shares outstanding.
Efficient market theory
A theory stating that
all investors' knowledge and expectations are already reflected in the
market and the stock's price, thus
it is not feasible to outperform the market.
In
other words, this theory suggests that if investors randomly select a
group of stocks, they
would have equal chance of outperforming the market as any professional
investor.
Equity
Usually,
it refers to an ownership in a business in the form of stocks.
Each stock represents a proportional share in the business,
thus
they are "equitable claims" on the business itself.
In
the balance sheet of a company, equity refers to the total amount that
was invested in the company by the shareholders.
It
equals the assets
minus total liabilities.
Ex-dividend
date
The
date by which you must own a stock in order to receive its dividend
payment.
If
you buy the stock on that date or later on, you won’t get the
dividend payment.
Futures
contracts
A
contract to buy or sell a pre-specified amount of a commodity or
financial instrument at a particular price on an agreed upon date in
the future.
Growth
stocks
Stock
of a company with earnings growth at a relatively rapid rate that is
expected to continue to grow at high levels.
Growth
companies usually pay little or no dividend payments to
shareholders,
since
they are reinvesting most or all of their earnings into the further
development of the business.
Index
An
unmanaged selection of securities whose collective performance is used
as a standard to measure investment results.
Examples
for an index are the S&P 500, the Nasdaq 100, etc.
Initial
public offering (IPO)
A
company's first offering of common stocks to the public.
Investment
Clock
Economy
works in cycles composed from 4 “seasons”:
Recession, Recovery, “Boom”, and Slowdown.
Investors
like to choose the appropriate securities for each season.
During
recession, growth stocks are preferred, since their companies have
greater chance not to be affected by the market fall. On the recovery
period,
small
cap companies and value stocks tend to be more attractive. Commodities
and overseas equities can be used during the boom period, when
the market tends to skyrocket. Finally, large cap companies and short
term treasuries considered suitable for the slowdown season.
Obviously,
no one knows when a cycle begins and when it ends, thus it’s
all just like shooting in the dark.
Large
capitalization (large cap) stocks
Those
are stocks of companies whose market value is above $10
billion.
The
market cap is calculated by multiplying the number of shares
outstanding by the stock price.
Limit
order
An
order to buy or to sell a security at a specific price or better. In
case of buy order,
this
would be the upper threshold on the execution price, and in case of
sell order it will be the lower limit to perform the sell.
Margin
account
An
account in which you have permits to use borrowed money from your
broker to buy securities.
Market
capitalization (market cap)
A
company's total stock market value, calculated by multiplying the total
number of shares outstanding by the stock price.
Micro
cap stocks
Stocks
with market cap of less than $150 million.
NASDAQ
(National Association Of Securities Dealers Automatic Quotations)
A
computerized information network that provides brokers and dealers with
price quotations on securities traded over-the-counter.
Nasdaq
100 Index
An
index that includes the Nasdaq's 100 largest companies; most are
technological companies like Microsoft, Dell, and others.
Open
order (pending order)
A
buy or sell order that has not yet been cancelled or executed. Order
submitted after trading hours will be a pending order, and
will execute only when the market reopen.
Options
There
are two types of options: call and put. A call option gives you right,
but not the obligation, to buy the shares of a company at a set
price
(the
strike price) for a certain period of time (the expiration date). A put
option gives you right, but not the obligation, to
sell a stock of a company at the strike price till the expiration
date. You can choose to exercise the option before the
expiration date,
usually
at the last trading day of the third week of a calendar month,
otherwise it expires worthless.
Order
Any
request from a broker to buy or sell a security, either at the market
price or at a specific price.
Portfolio
The
holdings of more than one security, such as stock, bond, cash
equivalents or other asset.
Investors
are building portfolios in order to obtain maximum returns or reducing
risk through diversification.
Preferred
Stock
Stocks
which have preference over common stock in regard to the payment of
dividends or in case of any liquidation of the company. Their
share prices tend to remain stable with time, and will generally not
carry the voting rights that common stock does.
Price
to earning ratio (P/E Ratio)
The
relationship between a stock's price and its earnings per
share.
It
is calculated by dividing the stock's price per share by earnings per
share for a twelve month period. The
P/E is used as an indicator of the company trading below or above its
intrinsic value. Generally speaking, stocks with lower P/E are
considered relatively cheap, while
stocks with higher P/E are considered expensive.
Spread
the
price difference between the price a buyer is willing to pay to the
price a seller is willing to sell a security.
Stock
An
instrument that indicates an ownership position in a business, and
represents a claim on its proportional share in the company's assets
and profits.
The
ownership in the company is determined by the number of shares a person
owns divided by the total number of shares outstanding. For example,
if
a company has 100 shares of stock outstanding and you own 10 of them,
then you own 10% of the company.
As
a shareholder of the company’s stocks, you also have voting
rights in the company shareholders meetings.
Stock
Split
A
stock split simply involves a company modifying the number of its
shares outstanding and proportionally adjusting the share price to
compensate.
A
typical example is a 2-for-1 stock split, which means that the number
of shares outstanding will be doubled and the share price will be half
the original price.
Trading
Any
buying and selling of securities or commodities in one of the exchanges
in the stock market.
Value
stocks
stocks
that have lower than average price based on financial ratios, such as
price to earning or price to book ratios.
Virtual
Trading
Investing
in the stock market is not an easy task. There are many various
investing techniques and algorithms used by different types of
investors, and
trading also includes risking your money. In order to test those
techniques and practice various trading methods, you can use a
simulator.
This
is called virtual trading, since it simulate the real trading but
doesn’t involve real money or any kind of risk. Yalicoo
is a unique virtual trading simulator, within
you can test your trading with real market quotes, and also have the
opportunity to win prizes.
Volume
The
total number of shares traded in a security during a given period of
time.
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