Tag: Buying

Lot definition explanation

What is Lot?
In general, any group of goods or services making up a transaction. In the financial markets, a lot represents the standardized quantity of a financial instrument as set out by an exchange or similar regulatory body. For exchange-traded securities, a lot may represent the minimum quantity of that security that may be traded. Read more for examples and further explanation including related video clips and also comments
Continue reading “Lot definition explanation”

High Minus Low – HML definition explanation

What is High Minus Low – HML?
One of three factors in the Fama and French asset pricing model. HML accounts for the spread in returns between value and growth stocks. HML argues that companies with high book-to-market ratios (value stocks) outperform those with low ones (growth stocks).

Also referred to as the “”value premium””. Read more for examples and further explanation including related video clips and also comments
Continue reading “High Minus Low – HML definition explanation”

Carl Icahn definition explanation

What is Carl Icahn?
An American billionaire investor with reputation for being a shrewd activist investor. Icahn is known for buying large amounts of stock in a specific company, and then pressuring the company to make significant changes to increase its value. Read more for examples and further explanation including related video clips and also comments
Continue reading “Carl Icahn definition explanation”

Implied Repo Rate definition explanation

What is Implied Repo Rate?
The rate of return that can be earned by simultaneously selling a bond futures or forward contract and then buying an actual bond of equal amount in the cash market using borrowed money. The bond is held until it is delivered into the futures or forward contract and the loan is repaid. Read more for examples and further explanation including related video clips and also comments
Continue reading “Implied Repo Rate definition explanation”

Central Bank definition explanation

What is Central Bank?
The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort. Read more for examples and further explanation including related video clips and also comments
Continue reading “Central Bank definition explanation”

Market Overhang definition explanation

What is Market Overhang?
An observational theory stating that in certain stocks at certain times, there is a buildup of selling pressure. This occurs as a combined result of sales and a strong wish to sell among those who still hold the stock but fear that selling it may cause further declines. Depending on the overall liquidity in the stock, a market overhang can last for weeks, months or longer. Market overhang usually relates to trading in one security but can also apply to larger areas of the market, such as an entire sector. Read more for examples and further explanation including related video clips and also comments
Continue reading “Market Overhang definition explanation”