Lagging stocks are not keeping up with the broader market.
The inefficiency rating may have a different value depending on the brokerage firms that issue the rating; this is sometimes referred to as a weak hold or a moderate sell.
An analyst assigns an “Unsatisfactory” rating when a stock is not expected to keep pace with the market, but concerns do not justify a sell rating.
There are a number of reasons why a stock can get a low rating, but in most cases this is the result of comparing a company’s performance with similar indicators or the market as a whole.
Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are smoothed out or kept to a minimum.
A beneficial owner is a person who enjoys the benefits of ownership, despite the fact that the ownership of the property is registered in a different name.
A central counterparty clearing house (CCP) is an organization, usually run by a large bank, that exists in European countries to facilitate the trading of derivatives and equities.
Delivered from ship (DES) was an Incoterm (an international commercial term) that applied to both inland and ocean shipping, and often to charter shipping.
Preliminary analysis in financial markets refers to the forecasting of various indicators, economic and financial, by evaluating past and present data and parameters.
Financial Information Exchange (FIX) is an information and data protocol used to distribute price and trade information to investment banks and broker-dealers.
A good delivery is understood as an unhindered transfer of ownership of a security from the seller to the buyer in compliance with all necessary requirements.
“Holding the market” refers to an illegal trading practice that attempts to support the price of a security after negative news has been published that would otherwise cause its price to fall.