Month: April 2020

A pattern day trader (PDT) is a regulatory designation for those traders or investors that execute four or more day trades during five business days’ time using a margin accountr. The number of day trades must constitute more than 6% of the margin account’s total trade activity during that five-day window. If this occurs, the trader’s account will be flagged as a PDT by their broker. The PDT designation places certain restrictions on further trading and is in place to discourage investors from trading excessively. read more

The 52-week high/low is the highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.

A finance charge is a fee charged for the use of credit or the extension of existing credit. It may be a flat fee or a percentage of borrowings, with percentage-based finance charges being the most common. A finance charge is often an aggregated cost, including the cost of carrying the debt itself along with any related transaction fees, account maintenance fees or late fees charged by the lender.

A yellow knight is a company that was planning a hostile takeover attempt, but backs out of it and instead proposes a merger of equals with the target company.

A finance charge is a fee charged for the use of credit or the extension of existing credit. It may be a flat fee or a percentage of borrowings, with percentage-based finance charges being the most common. A finance charge is often an aggregated cost, including the cost of carrying the debt itself along with any related transaction fees, account maintenance fees or late fees charged by the lender.

A yellow knight is a company that was planning a hostile takeover attempt, but backs out of it and instead proposes a merger of equals with the target company.

Political economy is an interdisciplinary branch of the social sciences that focuses on the interrelationships among individuals, governments, and public policy.

The term order book refers to an electronic list of buy and sell orders for a specific security or financial instrument organized by price level. An order book lists the number of shares being bid on or offered at each price point, or market depth. It also identifies the market participants behind the buy and sell orders, though some choose to remain anonymous. These lists help traders and also improve market transparency because they provide valuable trading information.

An X-mark signature is made by a person in lieu of a signature. Due to illiteracy or disability, a person may be unable to append a full signature to a document as an attestation that he or she has reviewed and approved its contents. In order to be legally valid, the X-mark signature must be witnessed.

The 48-hour rule is a requirement that sellers of to-be-announced mortgage-backed securities (MBS) communicate all pool information regarding the transactions to buyers before 3 p.m. EST 48 hours before the settlement date of the trade. The Securities Industry And Financial Markets Association (SIFMA) enforces this rule. SIFMA was formerly known as the Public Securities Association or Bond Market Association.