by Henry Liverman | May 5, 2021 | Market Definitions
An independent agency of the US Federal Government created following the stock market crash of the 1930s. The primary function of the Securities and Exchange Commission (the SEC) is to enforce laws against market manipulation. The SEC states it has a three-part...
by Henry Liverman | May 5, 2021 | Market Definitions
The Relative Strength Index is a momentum indicator used to determine of a stock or asset is overbought or oversold. The RSI is usually represented as a oscillating line graph from 0 – 100. The standard interpretation is that a value over 70 indicates that a...
by Henry Liverman | May 4, 2021 | Market Definitions
Also referred to as the Sharpe Ratio, a risk-adjustment return is an analysis ratio that provides insight into how risk compares to return in an investment. It measures to reward-to-variability ratio of a potential investment by dividing the risk-adjusted return with...
by Henry Liverman | May 4, 2021 | Market Definitions
A foreign currency that is held in large reserves by a government or other monetary authority. A reserve currency is used by that government to participate in the global economy and to back said government’s own currency. As a result of the Bretton Woods...
by Henry Liverman | May 4, 2021 | Market Definitions
Software that allows potential investors access to the Bloomberg data service. Advantages of a Bloomberg terminal include live access to global financial data in real time as well as news feeds and messages. They’re also used to facilitate stock and option...
by Henry Liverman | May 3, 2021 | Market Definitions
A non-traditional monetary policy in which a central bank purchases longer-term securities directly from the market. This has the effect of increasing the money supply as well as working to encourage lending and investment. When the bank buys these securities, it...
by Henry Liverman | May 3, 2021 | Market Definitions
An options contract that gives the owner the ability to sell an underlying security at a pre-determined price within a pre-set time frame (also referred to as the “strike price”). However, it is not a requirement that the options contract holder buy at...
by Henry Liverman | May 3, 2021 | Market Definitions
A fraudulent practice of encouraging investors to buy shares in a company in order to artificially inflate the price and sell one’s own shares when the price is high. Generally, a stock is boosted by a party who has an established position through false,...
by Henry Liverman | May 3, 2021 | Market Definitions
A term used to denote rapid, excessive, and out-of-control price increases in an economy. Generally, hyperinflation is differentiated from regular inflation (or the measure of the ricing prices of goods and services) by an extremely rapid rise in prices, typically...
by Henry Liverman | May 1, 2021 | Market Definitions
A situation marked by rising prices in an economy. The more technical definition is that inflation is a sustained increase in the general price level in an economy. This situation translates to an increase in the cost of living in an area as the prices of goods and...
