The
MARKET DOG
Economic Research & Planning
Ask
The price a trader is willing to accept per share of stock when selling.
Asset Allocation
The division of an investment portfolio among different asset classes to reflect an investors risk tolerance, investment outlook, and risk/reward analysis.
Bid
The price a trader is willing to pay per share of stock.
Blue-Chip Stock
A common stock of a company with a history of consistent growth and dividend payments.
Bond
A fixed income investment product that structures a loan made to a government or company that varies by its interest rate and time horizon. This allows investors to assume the role of a lender.
Buyback
Also known as a share repurchase, this is when a publicly traded corporation repurchases it's own shares on the open market to reduce the amount of total outstanding shares.
Capital Gain/Loss
The profit or loss from selling shares in a company due to the difference between the sale price and the cost of acquiring the shares sold..
Dollar-cost averaging
Investing equal amounts of money at regular intervals of time regardless of the price level.
Dividend
A distribution of a portion of earnings among the shareholders of a corporation.
Exchange Traded Fund (ETF)
A basket of securities similar to a index mutual fund but trades through out the trading day.
Inflation
An overall increase of prices.
Institutional Investor
Any organization that invests. Examples range from mutual fund companies, endowment funds, and depository institutions etc.
IRA and Rothe IRA
Individual Retirement Account (IRA) is a tax advantaged account thatcan be funded with earned income. The Roth IRA version can use after tax dollars to grow tax free for future gains.
Inverted Yield Curve
When short-term interest rates are higher than long-term interest rates. The opposite is a positive yield curve.
Market Cap.
Total shares outstanding multiplied by the current stock price.
Mutual Fund
A basket of securities that follows an index, sector, or investment strategy that can only be traded at the end of each trading day.
Sector
The different groups of companies in the economy that share similar business activities.
Stock Option
An agreement for investors that gives them the right but not the obligation to purchase or sell a particular security at an agreed upon price and time. These agreements are referred to as calls and puts.
Stock Split
When a company increases their outstanding share count by a predetermined ratio to decrease the price of the company stock. This increases liquidity but doesnt directly change the total value of the shares.
Trough
A period of the economy where its transitioning from a recession to normal economic activity and growth.
Year-to-date (YTD)
The period of time starting from January 1st up to the current date.
Value Investing
An investment strategy that focuses on companies with low P/E ratios or low price to book ratios. These are perceived to be discounted opportunities for growth.
Volatility
The degree of variation of price.
Volume
The number of shares traded in the current trading session