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Investments glossary

Tangible Net Worth Definition

Tangible net worth is most commonly a calculation of the net worth of a company that excludes any value derived from intangible assets such as copyrights, patents, and intellectual property.

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Investments glossary

Consumer Credit

Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.

Categories
Investments glossary

Tangible Net Worth Definition

Tangible net worth is most commonly a calculation of the net worth of a company that excludes any value derived from intangible assets such as copyrights, patents, and intellectual property.

Categories
Investments glossary

Foreign Exchange (Forex)

Foreign Exchange (forex or FX) is the trading of one currency for another. For example, one can swap the U.S. dollar for the euro. Foreign exchange transactions can take place on the foreign exchange market, also known as the Forex Market.

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Investments glossary

Share Repurchase

A share repurchase is a transaction whereby a company buys back its own shares from the marketplace. A company might buy back its shares because management considers them undervalued. The company buys shares directly from the market or offers its shareholders the option of tendering their shares directly to the company at a fixed price.

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Investments glossary

Demand Draft

A demand draft is a method used by an individual for making a transfer payment from one bank account to another. Demand drafts differ from normal checks in that they do not require signatures to be cashed.

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Investments glossary

Homemade Dividends

Homemade dividends are a form of investment income generated from the sale of a portion of an individual’s investment portfolio. These assets differ from the traditional dividends that a company’s board of directors distributes to certain classes of shareholders.

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Investments glossary

Stock Market Capitalization-to-GDP Ratio Definition

The stock market capitalization-to-GDP ratio is a ratio used to determine whether an overall market is undervalued or overvalued compared to a historical average. The ratio can be used to focus on specific markets, such as the U.S. market, or it can be applied to the global market, depending on what values are used in the calculation. It is calculated simply by the stock market cap divided by gross domestic product.

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Investments glossary

Accumulation/Distribution Indicator – A/D Definition and Uses

Accumulation/distribution is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed. The accumulation/distribution measure seeks to identify divergences between the stock price and volume flow. This provides insight into how strong a trend is. If the price is rising but the indicator is falling this indicates that buying or accumulation volume may not be enough to support the price rise and a price decline could be forthcoming.

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Investments glossary

Order Audit Trail System (OATS)

The Order Audit Trail System (OATS) is an automated computer system established by the Financial Industry Regulatory Authority (FINRA). It is used to record information relating to orders, quotes, and other related trade data from all equities traded on the National Market System (NMS), including over-the-counter (OTC) stocks. This system simplifies an order’s progression from the initial receipt of the order to its eventual execution or cancellation, for easy tracking or auditing purposes. read more