Conversion Parity Price Definition.

The Conversion Parity Price is the price of a convertible security that would make the equity value of the underlying stock equal to the value of the convertible security. In other words, it is the price at which the equity holder would be indifferent between owning the stock and owning the convertible security. The price … Read more

Speculative Stock.

A speculative stock is a stock that is considered to be risky, but which also has the potential for high returns. Speculative stocks are usually those of small, young companies that are not yet profitable, but which have high growth potential. Investing in speculative stocks is a risky proposition, but it can also be a … Read more

What Is a Diffusion Index?

A diffusion index is a technical indicator that measures the momentum of a stock or index. The index is based on the premise that the direction of the stock or index is more important than the actual price. The index is calculated by taking the difference between the current price and the price n periods … Read more

Offset Definition.

An offset definition is a term used to describe the process of resetting the price of a security to a new level. This is often done in order to manage the risk associated with holding a position in a security, or to take advantage of price movements in the market. Do you lose money on … Read more

What Is Nano Cap?

A nano cap is a publicly traded company with a market capitalization of less than $50 million. Nano caps are typically small, early-stage companies with limited operating history and a high degree of uncertainty. Nano caps are generally considered to be highly speculative and risky investments. They tend to be more volatile than larger companies … Read more

What Is Short Interest?

Short interest is the number of shares of a particular stock that have been sold short by investors. A stock is said to be “sold short” when an investor borrows shares of the stock from a broker and sells them, hoping to buy the shares back at a lower price and return them to the … Read more

Suspended Trading Definition.

Suspended trading definition: Suspended trading is a temporary halt in the trading of a security on a stock exchange, usually in response to extraordinary circumstances. Trading may be suspended by the exchange itself or by the security’s listing exchange. Suspended trading usually occurs during times of high market volatility, when there is an imbalance in … Read more

Bunching Definition.

When a stock’s price hits a certain level and then “bunches up” or consolidates at that level for some period of time, it is said to be “bunching up” at that level. This is usually taken to mean that the stock is forming a base or support level at that price, from which it may … Read more

Counter-Cyclical Stock Definition.

A counter-cyclical stock is a type of stock that tends to outperform the market during periods of economic recession. This type of stock is typically associated with companies that are considered to be essential, such as food and drug companies, or companies that provide services that are considered to be essential, such as utilities. The … Read more

Canadian Securities Course (CSC) Definition.

The Canadian Securities Course (CSC) is a comprehensive program that provides in-depth instruction on the knowledge and skills required to trade securities in Canada. The course covers a broad range of topics, including the Canadian securities industry, the regulatory environment, the mechanics of trading, and the principles of investing. The CSC is offered by the … Read more