A Flashcards
Annual report
It is a report prepared by a company, that contains tons of info from the cash flow to its management strategy. When reading a annual report, you’re judging the company solvency and financial situation.
Arbitrage
It refers to buying and selling the same stock just on a different markets. Example: if stock XYZ is trading at $10 on one market and $10.50 on another. Meaning if you were to buy X amount of shares for $10 and sell them for $10.50 on another market, pocketing the difference.
Averaging Down
When a investor buys more of a stock as the price goes down. This makes it so your average purchase price decreases. You might use this strategy if you believe that the general agreement about the company is wrong, so you expect it’s to rebound later
Ask
The price is seller is willing to except for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.
AMEX
Tiny companies; Volatile, but not ideal enough for Penny stocking Due to large price spreads, illiquidity.
Amateur (traders)
New suckers all the time with big dreams, lovers of penny stocks.