Tag: stocks

Mechanical Investing definition explanation

What is Mechanical Investing?
Buying and selling stocks according to a screen based on predetermined criteria, usually by using different technical indicators such as relative strength or momentum. This method allows traders to enter transactions without emotion and also enables the trader to backtest their strategies by using historical data from any time period. Read more for examples and further explanation including related video clips and also comments
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Third Market definition explanation

What is Third Market?
Trading by non exchange-member brokers/dealers and institutional investors of exchange-listed stocks. In other words, the third market involves exchange-listed securities that are being traded over-the-counter between brokers/dealers and large institutional investors. Read more for examples and further explanation including related video clips and also comments
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Russell 2000 Index definition explanation

What is Russell 2000 Index?
An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small cap stocks in the United States. Read more for examples and further explanation including related video clips and also comments
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Deferred Share definition explanation

What is Deferred Share?
1. A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid.

2. A method of stock payment to directors and executives of a company through the deposit of shares into a locked account. The value of these shares fluctuate with the market and cannot be accessed by the beneficiary for the purpose of liquidation until they are no longer employees of the company.

3. A share generally issued to company founders that restricts their receipt of dividends until dividends have been distributed to all other classes of shareholders. Read more for examples and further explanation including related video clips and also comments
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Unified Managed Account – UMA definition explanation

What is Unified Managed Account – UMA?
A professionally managed private investment account that is rebalanced regularly and can encompass every investment vehicle (e.g. mutual funds, stocks, bonds and exchange traded funds) in an investor’s portfolio, all in a single account. Read more for examples and further explanation including related video clips and also comments
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Yield Tilt Index Fund definition explanation

What is Yield Tilt Index Fund?
A type of mutual fund that allocates capital as a standard index, by replicating the holdings of a specified stock index, such as the Standard & Poor’s 500 Index (S&P 500), except that the fund weights its holdings towards stocks that offer higher dividend yields. Stocks with higher dividend yields are given a greater portfolio weighting, making them represent more of the fund’s portfolio than they otherwise would in the standard index. Read more for examples and further explanation including related video clips and also comments
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Hybrid Fund definition explanation

What is Hybrid Fund?
A category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed. Morningstar separates hybrid funds into domestic hybrid and international hybrid categories. Read more for examples and further explanation including related video clips and also comments
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