Investments glossary terminology
The business cycle describes the rise and fall in output of goods and services in an economy. A measure often used to represent this is the rise and fall in the Gross Domestic Product (GDP), often the real (adjusted for price level change) per person (capita) measure. The term “cycles” might also refer to the rise and fall in debt levels or financial markets.
A killer application, or killer app is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980’s when accounting, database and word-processing applications were being developed for mass use. The term killer application may be derived from the fact that such an application was perceived to be innovative enough to overcome the competition and spur sales of both applications and computers running operating systems advanced enough to accommodate the latest innovations.
Buy to cover refers to a buy order made on a stock or other listed security to close out an existing short position. A short sale involves selling shares of a company that an investor does not own, as the shares are borrowed from a broker but need to be repaid at some point.
A killer application, or killer app is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980’s when accounting, database and word-processing applications were being developed for mass use. The term killer application may be derived from the fact that such an application was perceived to be innovative enough to overcome the competition and spur sales of both applications and computers running operating systems advanced enough to accommodate the latest innovations.
In the world of markets, a widow maker is an investment that results in large, potentially devastating losses. It can also refer to a trade that results in a loss for virtually everyone who tries it. In colloquial usage, a widow maker refers to anything with the potential to kill someone quickly. The phrase has historically been used in forestry and medicine.
Main Street is a colloquial term used by economists to refer collectively to America’s independent small businesses. It gets its name from a common name for the principal commercial street of small towns across the country. In England, the equivalent term is High Street.
Lading is the process of loading cargo onto a ship or vessel, and a negotiable bill of lading is one kind of bill of lading. The bill of lading is a legal document between the shipper and carrier, detailing the type, quantity, and destination of goods being carried. The negotiable bill of lading is distinguished by the fact that it is a contract of carriage that can be transferred to a third party.
The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.
The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.
A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart. Certain indicators, such a moving average or trendlines, may help in isolating trends as well as spotting reversals.