Post on 25-Jun-2015
Affluenza• Indicative of a culture that prides financial
success as one of the highest achievements
• Symptoms include an addictive desire to gain more wealth
Baby Bills
• Nickname for the companies that may have formed if the Justice Department had broken up Microsoft Corporation.
Cash Cow• A business, product, or asset that once
paid off will cause a consistent cash flow
• Cash flow is over the lifespan of the business, product, or asset
Daisy Chain• Investors who artificially
inflate the price of a security to sell it at a profit.
• Based on a fictitious selling known as wash selling
Elephants
• Large institutions that make trades in very high volumes.
Free and Clear
• When someone gains outright ownership of an asset.
• Usually when payments are complete and no creditor has claim on the property
Golden Share
• A share that gives its shareholder veto power over changes to the company's charter.
Hurdle Rate
• The minimum amount of return that a person requires before they will make an investment in something.
In the Pink
• Describes a situation in which an investor or an economy is in a good financial position.
• Generally refers to being in the best health or condition.
Jitney • A fraudulent activity in the penny stock market in which two brokers trade a stock back and forth.
• This increases commissions and gives the impression of greater trading volume.
Kangaroos
• Term for Australian stocks
• Refers to stocks on the All Ordinaries index, which is composed of 280 of the most active Australian companies
Lemon
• A very disappointing investment.
• Actual return varies from expected return in which the actual return is lower
Macaroni Defense
• A company issues many bonds saying they must be redeemed at a high price if the company is taken over
• Usually done by a company trying to prevent a take-over
Nervous Nelly
• An investor who is concerned about investing and the risks associated with it.
Offshore
• Something located or based outside of one's national boundaries.
Panic Buying
• High volume buying as a result of sharp price increases
Red Chip
• A company incorporated and listed in Hong Kong
• Controlled by Chinese shareholders
Seat
• Membership in the NYSE (New York Stock Exchange)
Tailgating
• When a broker purchases or sells a security for a client, and then makes the same transaction in his or her own account.
Upstairs Trade
• When a trade in a listed stock is not executed through the listing exchange
Visibility
• The probability that future projections will be correct.
Whoops
• Slang for the Washington Public Power Supply System (WPPSS), which made the record books with the largest municipal bond default in history.
Yard
• Slang for one billion units in currency
Zombies
• Companies that continue to operate even though they are insolvent. Also known as living dead.
• It is advisable to avoid investing in zombies at all costs; their life expectancies are highly unpredictable.