Stock Market Definitions

Pairs Trading

Pairs Trading is a strategy that consists of buying one stock in a given industry, and selling short another stock, usually in the same industry. The strategy seeks to identify two companies with common characteristics (eg Coke and Pepsi) w

Z

Nasdaq-listed securities have four or five characters. A fifth letter identifies the issue as other than a single issue of common stock or capital stock. A fifth letter Z indicates that listing is a class of preferred stock, a stub, a certificate representing a limited par

Yo-Yo Stock

A stock which trades with extreme volatility, it’s price moving up and down like a yo-yo.

Closet Index Fund

A Closet Index Fund is a mutual fund that is not actively managed and is essentially simply an index fund in disguise. The Closet Index Fund has comparable volatility to the index fund but also comes with a sales charge (load) and annual expenses. See also:  R Squared

Yellow Sheets

A US daily bulletin which provides updated bid and ask prices for over-the-counter corporate bonds as well as listing brokerages which make a market in those bonds. See also: National Quotation Bureau

Year End Dividend

A dividend payment to stockholders derived from retained earnings, declared at or close to the end of the business year. Normally a result of higher than expected company profits.

XW

The XW symbol indicates that a stock is trading without warrants attached (ex-warrants).

XR

Symbol that indicates a stock is trading with no rights attached (ex-rights).

X or XD

Symbol that indicates a stock is trading without a dividend.

Window Dressing

Window dressing refers to the practice of adjusting a portfolio to have a better appearance for clients or shareholders near the end of a quarter or fiscal year. To do this, a portfolio manager might for example exit losing long positions in a stock.