NBBO shows the best available (lowest) bid price and the best available (highest) bid price available to clients from multiple exchanges.
The SEC regulation NMS requires brokers to guarantee their clients at least the quoted price of NBBO at the time of a trade.
NBBO is calculated and distributed by Security Information Processors (SIPs).
While this ensures that all investors receive the best possible prices when making trades, the NBBO may not always reflect the latest data, resulting in trades that may not match investors’ price expectations.
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.
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.
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.
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.
The Hampton effect refers to a downturn in trading that occurs just before the Labor Day weekend, followed by an increase in trading volume as traders and investors return after the long weekend.