by Henry Liverman | Jul 22, 2021 | Market Definitions
An example of a sucker’s rally, a Dead Cat Bounce is a temporary and short-lived uptrend within a prolonged decline/bear market that is followed by a continuation of prevailing downtrend. Small rallies are frequent in downtrends, but must be taken for what they...
by Henry Liverman | Jul 22, 2021 | Market Definitions
A statistic that measures the relationship between the movement of two asset prices. If two stocks are rising and falling together, they are said to have a positive covariance. But when they move opposite of each other, the covariance is said to be negative. ...
by Henry Liverman | Jul 22, 2021 | Market Definitions
A statistic that measures how much two securities move in relation to each other. It may also be used to measure the movement of a stock in relation to an index (for example, the S&P 500). This can give investors an idea of how the stock is performing in...
by Henry Liverman | Jul 22, 2021 | Market Definitions
The world’s largest options exchange. The Chicago Board Options Exchange (Cboe) was founded in 1973 with contracts focusing on individual equities, indexes, and interest rates. It offers options on more than 2,200 companies, 22 stock indices, and 140...
by Henry Liverman | Jul 22, 2021 | Market Definitions
A hands-on approach requiring an individual to act in the role of the portfolio manager. The goal of active investing is to beat the average returns a trader would expect if they simply invested and left the investments alone. This involves a far deeper level of...
