Articles on Stock markets
News, Research and Analysis
What is a Quote?
Quotes are current pricing information about individual securities on an exchange.
A potential investor will refer to a current quote to see what price a security traded at most recently. A quote will also show the bid and ask prices, which indicates the price other buyers are attempting to buy the security for (bid), and the price sellers are trying to sell it for (ask).
If you are selling, you're going to get the bid price, and if you're buying, you're going to pay the ask price. The difference between the two is called the spread, and will basically be pocketed by the broker or specialist that handles the transaction. A security with a spread of zero indicates high liquidity and is referred to as a frictionless asset or trade.
Quotes used to be viewed on ticker tape, which was constantly printed out during trading hours with the most recent price information, and this is where the shorthand ticker symbols for companies originated. This information was originally transmitted via telegraph.
Now of course quotes can be viewed on demand with price information updated instantaneously. Bid and ask prices are recorded in an electronic order book and a matching engine finds the closest bid and ask prices.
What is a Partnership?
A partnership is a business owned by two or more people, usually designated as an LLC
What is an Earnings Recast?
An earnings recast is a revision of previous earnings reports, in which a company has made different choices with...
What is a Balloon Payment?
A balloon payment is a lump sum due at the end of a balloon loan term. These terms are usually relatively short (5 yrs)
What is Working Capital?
Working capital is computed by subtracting a business’s current liabilities from its current assets
What is dollar cost averaging?
Dollar cost averaging (DCA) is a method of hedging against the risk of investing a lump sum at high market prices
What is AARP?
One of the largest and most influential groups in the country is the American Association of Retired Persons, or AARP
What does Ask Mean?
In the financial markets, “Ask” is the price that a seller is willing to accept for a security. It is also known as the offer price.
What is the Dividend Discount Model?
The Dividend Discount Model (DDM) is a method for valuing a stock, that looks at expected future dividend payouts and adjusts to present value.
What is Revenue?
Revenue is a word describing any cash flowing into a business as a result of goods and services rendered. It is sometimes call gross income,..
What is a Bank Draft?
A bank draft is a reliable, secure payment method that offers a higher degree of assurance than regular personal checks.