Tag: stocks

In Street Name definition explanation

What is In Street Name?
A brokerage account where the customer’s securities and assets are held under the name of the brokerage firm, rather than the name of the individual who purchased the security or asset. Although the name on the certificate is not that of the individual, they are still listed as the real and beneficial owner and have the rights associated with the security. Read more for examples and further explanation including related video clips and also comments
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Total Bond Fund definition explanation

What is Total Bond Fund?
A mutual fund or exchange-traded fund that seeks to replicate a broad bond index by owning many securities across a range of maturities, from both public and private sectors. The most common index used as a benchmark is the Lehman Aggregate Bond Index, which captures Treasury bonds, corporate bonds, municipal bonds and high-grade mortgage-backed securities.

Total bond funds may invest in bonds of a similar maturity, class and rating to replicate an issue that is not available for purchase by the fund. These restrictions exist because of the diversity and relative illiquidity of the bond markets compared to equities markets. It is important for a total bond fund to have a similar interest rate and maturity to the base index. Read more for examples and further explanation including related video clips and also comments
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Debt Security definition explanation

What is Debt Security?
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.

The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.

Also known as “”fixed-income securities.”” Read more for examples and further explanation including related video clips and also comments
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Weekend Effect definition explanation

What is Weekend Effect?
A phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday. Some theories that explain the effect attribute the tendency for companies to release bad news on Friday after the markets close to depressed stock prices on Monday. Others state that the weekend effect might be linked to short selling, which would affect stocks with high short interest positions. Alternatively, the effect could simply be a result of traders’ fading optimism between Friday and Monday. Read more for examples and further explanation including related video clips and also comments
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Penny Stock definition explanation

What is Penny Stock?
A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the OTCBB and pink sheets. Read more for examples and further explanation including related video clips and also comments
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Long-Term Equity Anticipation Securities – LEAPS definition explanation

What is Long-Term Equity Anticipation Securities – LEAPS?
Publicly traded options contracts with expiration dates that are longer than one year. Structurally, LEAPS are no different than short-term options, but the later expiration dates offer the opportunity for long-term investors to gain exposure to prolonged price changes without needing to use a combination of shorter-term option contracts. The premiums for LEAPs are higher than for standard options in the same stock because the increased expiration date gives the underlying asset more time to make a substantial move and for the investor to make a healthy profit. Read more for examples and further explanation including related video clips and also comments
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Russell 3000 Index definition explanation

What is Russell 3000 Index?
A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of the entire U.S. stock market. More specifically, this index encompasses the 3,000 largest U.S.-traded stocks, in which the underlying companies are all incorporated in the U.S. Read more for examples and further explanation including related video clips and also comments
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