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...
by Henry Liverman | Apr 29, 2021 | Market Definitions
An electronic list of buy and sell orders for a specific security or financial instrument organized by price level. A order book displays the market depth, or the number of shares being offered or bid on at each price point. These lists help traders by providing...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A contract that gives its owner the right (not the obligation) to buy or sell an underlying asset at a specified price prior to or on a specified date. This future, predetermined price is known as the exercise price or the strike price. The put option buyer makes a...
by Henry Liverman | Apr 29, 2021 | Market Definitions
Investment strategies that allow you to pool your money with other investors to purchase a collection of stocks or other securities that would be difficult to replicate independently. This collection is known as a portfolio. The price of a mutual fund (or the Net...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A common technical analysis stock indicator, moving averages are a way to smooth out the price data of a stock by creating a constantly updating average price. When utilized, moving averages, the impacts of random, short-term fluctuations are mitigated. Moving...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A liquid asset used in the settlement of transactions. Money itself functions as a medium of exchange for transactional purposes in an economy. Money can be many things, from commodities to fiat moneys to digital cryptocurrencies. It’s able to work due to the...
