Stock Market

Asset Class

An asset class is a group of similar investments such as blue chip stocks. In order to build a diversified portfolio it is necessary to diversify among various asset classes, for example blue chip stocks, bonds and real estate.

NYSE Composite Index

The NYSE Composite Index tracks the price movements of all common stocks listed on the New York Stock Exchange. The Index is “capitalization-weighted” (that is, each stock’s weight in the Index is proportionate to the stock’s market capitalization)

ECN

Electronic Communications Network, frequently used for creating electronic stock or futures markets. Electronic Communications Networks, or ECNs, are electronic trading systems that automatically match buy and sell orders at specified prices.

EAFE Index

The EAFE Index is a basket of large cap stocks from developed countries outside of the US. EAFE stands for Europe, Australia and the Far East. This index is often used as an indicator of the wellbeing of the financial markets outside the US.

Large Cap

Large cap is a category used to describe stocks that have a market capitalization of between $5 billion and $25 billion. Stocks in this category are also referred to as ‘blue chips’ and are suitable for conservative investors looking for safety and steady appreciation. See also: Micro Ca

Nasdaq 100 Index

The Nasdaq-100 Index is a “modified capitalization-weighted” index designed to track the performance of a market consisting of the 100 largest and most actively traded non-financial domestic and international securities listed on The Nasdaq Stock Market, based

Archipelago

Archipelago is an ECN – an Electronic Communications Network, used for creating a market for Nasdaq and listed (NYSE) stocks. The trading system automatically matches buy and sell orders at specified prices.

ARCA

Previously known as ArcaEx, ARCA is an abbreviation of Archipelago Exchange. ARCA is an entirely online securities exchange offering stocks and options trading. Owned by NYSE Euronext, ARCA allows securities trading outside normal market hours.

Annual Report

Refers to the annual report made by a company to its stockholders, containing a balance sheet, an income statement, a list of changes in retained earnings, and how revenues were used.

AMEX Composite Index ($XAX)

In 1997 the American Stock Exchange introduced a new AMEX Composite Index with a new ticker symbol, XAX, replacing the AMEX Market Value Index (XAM). The XAX is a market capitalization-weighted index of the stocks listed on the American Stock Exchange. The XAX is