by Henry Liverman | Apr 30, 2021 | Market Definitions
An official document companies must file with Securities and Exchange Commission (the SEC) as part of a registration process in order to provide an investment offering to the public. They’re filed for stocks, bonds, and mutual funds. These documents assist...
by Henry Liverman | Apr 30, 2021 | Market Definitions
Also referred to as a trading range. This occurs when a security trades within consistent high and low prices for a period of time. The top of the range provides price resistance, while the bottom provides price support and the value of the security fluctuates...
by Henry Liverman | Apr 30, 2021 | Market Definitions
A variation of a futures contract, a perpetual futures contract (or perpetual swap) is an agreement between two counterparty traders to buy or sell an asset at a non-specified point in the future. They differ from traditional futures contracts in that there is no...
by Henry Liverman | Apr 30, 2021 | Market Definitions
The opposite of “overbought,” oversold refers to a security that is trading at a lower price and has the potential to bounce back. Oversold conditions don’t necessarily mean that a bounce-back is imminent, however. They can last for a long time, so...
by Henry Liverman | Apr 30, 2021 | Market Definitions
When a security is believed to be trading at a level above what it should be valued, it is referred to as “overbought.” A pre-assumption with overbought stocks is that the upward movement is a short-term phenomenon and that the market will correct the...