Assuming you are referring to insurance coverage, coverage initiated generally means that the insurance company has started to provide coverage for the policyholder. This typically happens when the policyholder pays the first premium and the policy goes into effect. Does buy-side or sell-side make more money? There is no definitive answer to this question, as … Read more
A sucker rally is a short-term increase in stock prices that is not based on any underlying improvements in the company’s fundamentals. Sucker rallies often occur after a sharp decline in stock prices, as investors become impatient and start buying stocks in the hope of a quick rebound. However, these rallies typically fizzle out quickly, … Read more
XD is an abbreviation for “ex-dividend.” This term is used to describe a stock that no longer pays dividends. For example, if a company goes public and offers shares of stock to the public, the shares will be XD. Can I sell my stock on ex-dividend date? The answer to this question is yes, you … Read more
A contra market is a market where the prices of securities are moving in the opposite direction to the overall market. For example, if the overall market is trending downwards, a contra market would be one where prices are rising. Contra markets can be found in both the stock and bond markets. In the stock … Read more
Basis trading is an investment strategy that involves taking a long or short position in a security or commodity, while simultaneously taking an offsetting position in a related security or commodity. The goal of basis trading is to profit from the price differential between the two securities or commodities. Basis trading can be used to … Read more
Distribution stock is defined as a stock that has been trading in a particular price range for an extended period of time and is now starting to experience a higher than normal volume of trading activity. This type of stock is often times associated with a large institutional investor selling off a large position. How … Read more
A share is a unit of ownership in a company or other organization. Shares are typically issued by companies in order to raise capital, and they are bought and sold on stock exchanges. The price of a share is determined by the forces of supply and demand in the market, and it can fluctuate greatly … Read more
A Block Trading Facility (BTF) is a service that facilitates the trading of large blocks of shares. It is designed for investors who want to trade large quantities of shares without affecting the market price. BTFs are typically used by institutional investors, such as hedge funds and mutual funds, who want to buy or sell … Read more
Authorized stock is the maximum number of shares of stock that a company is allowed to issue, as specified in its articles of incorporation. Once a company has issued all of its authorized stock, it cannot issue any more without amending its articles of incorporation. The number of authorized shares is set by the company’s … Read more
A stock quote is the price of a stock as quoted by a financial institution or stock exchange. The price may be the last traded price, the bid price, or the ask price. Stock quotes are used by investors and traders to gauge the current market value of a stock or to get information on … Read more
