Investments Reference

After-Hours Trading – AHT definition explanation

What is After-Hours Trading – AHT?
Trading after regular trading hours on the major exchanges.

Also known as the “”after-hours market”". Read more for examples and further explanation including related video clips and also comments
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After-Hours Market Close definition explanation

What is After-Hours Market Close?
The last transaction and final price of a security that is traded in the after-hours market. The after-hours market is generally more volatile than the regular market, but it can give investors an idea of what to expect at the start of trading the next day.

Also referred to as “”after-hours close”". Read more for examples and further explanation including related video clips and also comments
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Alternative Trading System – ATS definition explanation

What is Alternative Trading System – ATS?
A trading system that is not regulated as an exchange, but is a venue for matching the buy and sell orders of its subscribers. Alternative trading systems are gaining popularity around the world and account for much of the liquidity found in publicly traded issues.

Regulation ATS was introduced by the SEC in 1998 and is designed to protect investors and resolve any concerns arising from this type of trading system. Regulation ATS requires stricter record keeping and demands more intensive reporting on issues such as transparency once the system reaches more than 5% of the trading volume for any given security. Read more for examples and further explanation including related video clips and also comments
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Allocation Notice definition explanation

What is Allocation Notice?
An official notification from an options clearing firm to the writer of an option that the current option holder has exercised and, therefore, the writer must produce the underlying security. This may require the option’s writer to purchase or sell securities on the open market to fulfill the contractual obligation.

Allocation notice can also refer to how a broker or advisor would inform a client who has shown interest in an IPO whether his or her requested allocation of IPO shares is available in full, or if only a fraction of the requested total is available for purchase. Read more for examples and further explanation including related video clips and also comments
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Algorithm definition explanation

What is Algorithm?
A set of rules for accomplishing a task in a certain number of steps. One common example is a recipe, which is an algorithm for preparing a meal. Algorithms are essential for computers to process information. As such, they have become central to our daily lives, whether ordering a book online, making an airline reservation or using a search engine. Read more for examples and further explanation including related video clips and also comments
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American Stock Exchange – AMEX definition explanation

What is American Stock Exchange – AMEX?
The third-largest stock exchange by trading volume in the United States. The AMEX is located in New York City and handles about 10% of all securities traded in the U.S. Read more for examples and further explanation including related video clips and also comments
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Alternative Order definition explanation

What is Alternative Order?
A combination order whereby two separate orders are entered on the same security. The execution of one order cancels the other. Read more for examples and further explanation including related video clips and also comments
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Andrew’s Pitchfork definition explanation

What is Andrew’s Pitchfork?
A technical indicator that uses three parallel trendlines to identify possible levels of support and resistance. The trendlines are created by placing three points at the end of identified trends. This is usually achieved by placing the points in three consecutive peaks or troughs. Once the points have been placed, a straight line is drawn from the first point that intersects the midpoint of the other two.

Also known as “”median line studies”". Read more for examples and further explanation including related video clips and also comments
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Affirmative Obligation definition explanation

What is Affirmative Obligation?
An obligation of NYSE specialists to enter the market on a particular security (either by posting or bidding and ask) when there is not sufficient market demand and supply to efficiently match orders. Read more for examples and further explanation including related video clips and also comments
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Advance/Decline Index definition explanation

What is Advance/Decline Index?
A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered one of the best indicators of market movements as a whole. Stock indexes such as the Dow Jones Industrial Average only tell us the strength of 30 stocks, whereas the advance/decline index can provide much more insight into the movements of the market. Read more for examples and further explanation including related video clips and also comments
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