Market Update
Stock Market Definitions
Cyclical Stocks
The stock of a company that is highly sensitive to business cycles and the overall economy. Cyclical stocks often thrive when the economy is growing and suffer when the economy contracts. They are also often producers of products or provide services that are in less in demand during downturns in the
Qubes
Qubes refers to the popular Exchange Traded Fund QQQ which covers the Nasdaq 100 Index. QQQQ is the ticker symbol for Qubes (QQQ). See also: Exchange Traded Funds, Stock Market Forum, Nasdaq 100
Program Trading
The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called program trading when index funds and other institutional investors began to embark on large-scale buying or selling campaigns or “programs” to
Price Weighted
Where weighting in an index is proportionate to price. In a Price Weighted Index, firms with the highest stock prices will have the greatest impact on the index’s value. An example is the DJIA. An index may be Market Capitalization Weighted where the weighti
Preferred Equity Redemption Rate – PERC
Preferred stock that converts to equity at a given date, where a limit cap is placed on the received share value.
Pink Sheet Equities
Printed on pink paper, the Pink Sheets are a daily listing of the prices of over-the-counter stocks published by the National Quotation Bureau. Companies listed on the pink sheets do not need to meet minimum requirements or file with the SEC. .PK at the e
PERC
See: Preferred Equity Redemption Rate
Zombie
A zombie is an insolvent and bankrupt company that continues to operate while awaiting merger, aquisition or closure.
Pattern Day Trading Rule
The Pattern Day Trading Rule was introduced in August and September 2001 by the NYSE and NASD. The rule states: “If a trader executes four or more day trades within a five day period then he must maintain a minimum equity of $25,000 in his margin ac
Zero-coupon convertible security
A zero-coupon bond which can be converted into the common stock of the issuing company at a certain price, using a put option inherent in the security.
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