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Basis risk is the potential risk arising from the mismatch of the hedged position. Basis risk occurs when the hedge is imperfect, so that investment losses are not fully offset by the hedge. Some investments do not have good hedging tools, making the underlying risk more important than with other assets. 100% Equities Strategy
September 25, 2022 The 100% equity strategy assumes only long equity positions. 130-30 Strategy
September 25, 2022 This investment strategy uses selling short stocks and using the proceeds from the sale of those stocks to buy and hold the best rated stocks for a specified period of time. After-Hours Trading
September 25, 2022 After hours trading starts at 16:00. and ends around 8 pm. Authorized Stock
September 25, 2022 The authorized reserve refers to the maximum number of shares that a publicly traded company may issue, as specified in its articles of incorporation or articles of association. Blue Chip
September 25, 2022 Under the blue chips we mean an established, stable and well-known corporation. Blue-Chip Stock
September 25, 2022 Blue chip stocks are huge companies with great reputations, often including some of the most famous companies. Capital IQ
September 25, 2022 S&P Capital IQ is the research division of S&P Global, a provider of research, ratings and market indices. Deposit at Custodian (DWAC)
September 25, 2022 DWAC is a method of transferring certificates between brokers/dealers and the Depository Trust Corporation (DTC) using FAST. Dilution
September 25, 2022 Dilution is a decrease in the shareholder’s share in the share capital in connection with the issue or creation of new shares. Dogs of the Dow
September 25, 2022 “Dogs of Doe” is a well-known strategy, first published in 1991. Dutch Auction
September 25, 2022 In a Dutch auction, the price with the most bidders is selected as the bid price, so that the entire bid is sold at the same price. Greater Fool Theory
September 25, 2022 The Greater Fool Theory states that you can make money buying overpriced securities because there will usually be someone (i.e. a bigger fool) who is willing to pay an even higher price.
“Eventually, when the market runs out of fools, prices will start to go down. Halloween Strategy
September 25, 2022 The Halloween strategy suggests that investors should be fully invested in stocks from November to April and not invested in stocks from May to October. Hard-To-Borrow List
September 25, 2022 Short sellers rely on brokers to have shares available for borrowing. High Close
September 25, 2022 A high close is a stock manipulation tactic in which small trades are made at high prices in the last minutes of trading. Hindenburg Omen
September 25, 2022 The Hindenburg Omen is a technical indicator that was designed to signal an increased likelihood of a stock market crash. Insider Trading
September 25, 2022 Insider trading is the buying or selling of shares in a publicly traded company by someone who has non-public material information about those shares. Issued Shares
September 25, 2022 Issued shares refer to the total number of company shares held by investors, insiders and held in reserve to pay employees. January Effect
September 25, 2022 The January effect is the estimated seasonal trend in inventories for that month. Jesse L. Livermore
September 25, 2022 Jesse L. Livermore was a famous stock trader in the early 20th century. KBW Bank Index
September 25, 2022 The KBW Bank Index tracks stock prices of well-known banking companies in an attempt to be a benchmark for observers of the banking industry. Large Cap (Big Cap)
September 25, 2022 Large cap (sometimes referred to as “big cap”) refers to a company with a market capitalization value of more than $10 billion. Liar's Poker
September 25, 2022 Liar’s Poker is a multiplayer game in which players take turns betting on the total number of digits contained in the serial numbers of dollar bills held by players. Lock-Up Agreement
September 25, 2022 The lockup agreement temporarily prohibits company insiders from selling shares after the IPO. Long/Short Equity
September 25, 2022 Long-short capital is an investment strategy aimed at opening a long position on undervalued stocks while selling short stocks at inflated prices.