- feeds
- popular
- recent
- reader
- about
- story
- technologies
- what is rss
- connect
- dmca
- contact
- Feed Preview N - T Archives - HowTheMarketWorks
Robinhood Free Stock: Up to $1,500 in Free Shares
Is it worthwhile to use Robinhood for your investments instead of one of the many other investing apps out there? At HowTheMarketWorks, we provide our members with unbiased reviews of investing a...
What Is a Short Stock
A short stock is an expression used when you sold shares of a company that you did not own beforehand. Let’s say you expect a stock’s price to drop. Shorting a stock would involve a strategy ...
Price Controls
Definition “Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place ...
Spending Plan
A “Spending Plan” is exactly as it says – a plan of what you will be spending each month. There are usually two parts – your “fixed” spending and your “variable” spending. The fix...
Demand
Definition In Economics, “Demand” is the relationship between prices and how much people want to buy a good or service. Details As the market price of a good goes up, the amount of that good...
Supply
Definition In Economics, “Supply” means the relationship between prices and production. In general, the higher the market price of a good or service is, the more producers are willing to sel...
Stock Market Crash of 1929
Definition The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States. Details The stock market ...
https://www.howthemarketworks.com/stock-market-crash-of-1929/
Reserve Requirement
Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United State...
OHLC – Bar Chart
Definition: “OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minu...
What is the New York Stock Exchange?
Definition The New York Stock Exchange (or NYSE) is the largest stock exchange in the world. Think of it as an organized, fast-paced flea market where buyers and sellers from all over the world c...
https://www.howthemarketworks.com/what-is-the-new-york-stock-exchange/
Trailing Orders
Definition An order type that allows to set a moving stop or limit target price. The target price moves based on the daily high. Trailing stops can be set either in percentage or in dollars and c...
Risk Level
Definition Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time. R...
Stock
The post Stock appeared first on HowTheMarketWorks .
Open Interest
Definition Open Interest is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired. Details Think first in terms of optio...
Pullback
A pullback is a technical analysis term used frequently when a stock “pulls” back to a resistance and/or support line, usually after a breakout has occurred. Pullbacks can be in an uptrend or...
S&P 500
The S&P 500, or the Standard & Poor's 500, is a stock market index based on the common stock prices of 500 top publicly traded American companies, as determined by S&P. It differs from other stoc...
Sharpe Ratio (Beginner)
Introduction The Sharpe Ratio is an important tool for evaluating a stock, or a portfolio, based on how risky it is to get a higher return. You can use the Sharpe Ratio to determine how consisten...
OTC (Over The Counter) Stocks
Over-The-Counter (OTC) Stocks Most investors are familiar with NASDAQ, the NYSE (New York Stock Exchange), TSX (Toronto Stock Exchange), and most other large national stock exchanges. However, th...
https://www.howthemarketworks.com/oct-over-the-counter-stocks/
Technical Analysis Software
Technical analysis software automates the charting, analysis and reporting functions that support technical analysts in their review and prediction of financial markets (e.g. the stock market). ...
Price Ceilings
Price ceiling is a government-mandated limit on the price that can be charged for a given product, such as a utility or electricity. The intended purpose of a price ceiling is to protect the cons...
Poison Pill
A “Poison Pill” creates a strong defense mechanism for a “targeted takeover company” allowing the company to properly identify legitimate and beneficial acquisitions and weed out the acti...
Straddles
A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a sto...
Oligopoly
An oligopoly is characterized by a small number of sellers who dominate an entire market. The post Oligopoly appeared first on HowTheMarketWorks .
Straight Line Depreciation
Straight line depreciation is the most commonly used and simplest form of depreciation. The post Straight Line Depreciation appeared first on HowTheMarketWorks .
https://www.howthemarketworks.com/straight-line-depreciation/
Shadows
A small line (like a candle wick) found at the top or bottom of an individual candle in a candlestick chart. The post Shadows appeared first on HowTheMarketWorks .
Resistance Line
A point or range in a chart that caps an increase in the price of a stock or index over a period of time. An area of resistance, resistance line or resistance level indicates that the stock or in...
Price to Sales (P/S Ratio)
The price-to-sales ratio (Price/Sales or P/S) provides a simple approach: take the company's market capitalization (the number of shares multiplied by the share price) and divide it by the compan...
Stagflation
High inflation and high unemployment occurring simultaneously. The post Stagflation appeared first on HowTheMarketWorks .
Return on Equity
Return on Equity (ROE) is used to measure how much profit a company is able to generate from the money invested by shareholders. The post Return on Equity appeared first on HowTheMarketWorks .
Price to Earnings Growth (PEG)
Price to Earnings is the most usual way to compare the relative value of stocks based on earnings since you calculate it by taking the current price of the stock and divide it by the Earnings Per...
https://www.howthemarketworks.com/price-to-earnings-growth-peg/
Stock Volatility
Stock volatility information can be used in many different ways but here is a quick and easy bit of stock volatility information that you can begin using today. The post Stock Volatility appea...
https://www.howthemarketworks.com/stock-volatility-information/
Stock Exit Strategies
It is impossible to predict what the market will do today, tomorrow or next year, but there is one thing that is definite: markets go up, they go down, and they stay the same. The post Stock Ex...
Systemic Risk / Market Risk
Market risk is a measure of how much of a loss an investor is facing while trading. The post Systemic Risk / Market Risk appeared first on HowTheMarketWorks .
https://www.howthemarketworks.com/market-risk-or-systemic-risk/
Timing System
Everywhere you turn there is another proprietary stock market timing system being sold. Let's take a few minutes to review these claims against common sense. The post Timing System appeared fi...
Offer Price
It is only an offer and will not be accepted if the seller is not willing to let go at the offer price. This offer price pertains to all traded investments. The post Offer Price appeared first...
Spread
The difference between the ask price and the sell price is called the “spread” and it is kept by the broker. The post Spread appeared first on HowTheMarketWorks .
https://www.howthemarketworks.com/understanding-bid-and-ask-price/
Stock Symbols
If you are brand new to investing then take time to understand what you are reading when viewing a Stock Exchange Symbol and learn Stock Market Investing Basics. The post Stock Symbols appeare...
Risk Management
Many people start trading stocks and never learn about stock trading risk management. The one's that do learn, usually learn after they have been trading for a while, not before they start tradin...
https://www.howthemarketworks.com/introduction-to-stock-trading-risk-management/
REITs
A REIT or Real Estate Investment Trust may be the perfect investment vehicle. REITs own, and often operate, real estate but are publicly traded like stock. The post REITs appeared first on How...
https://www.howthemarketworks.com/investing-in-real-estate-through-reits/
Stock Index
By measuring the compilation of similar stocks instead of just one or two stocks, a stock index provides information about that particular market or segment. The post Stock Index appeared firs...
Seasonal Indicators
Many stock analysts have identified market trends related to specific times of the year. The success ratios of these trends are often far stronger than most other indicators. The post Seasonal ...
Sole Proprietorship
Simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. In a sole-proprietorship there is no legal ...
Retained Earnings
Retained earnings is calculated by adding net income to (or subtracting any net losses from) the beginning retained earnings and then subtracting the dividends that were paid to shareholders Th...
S Corporation
One of the ways to define a corporation. S Corporations are allowed by the IRS for most companies with less than 75 shareholders. The post S Corporation appeared first on HowTheMarketWorks .
National Debt
The total amount that the federal government has borrowed including internal debt (borrowed from national creditors) and external debt (borrowed from foreign creditors). The post National Debt ...
Stop Limit
A Stop Limit is an order that combines the features of stop order with the features of a limit order. A stop limit order executes at a specified price (or better) after a specified stop price is ...
Sherman Antitrust Act
US federal legislation of 1890 that prohibited the creation of monopolies by outlawing direct or indirect attempts to interfere with the free and competitive nature of the production and distribu...
Support and Resistance
Resistance and support levels are widely used by experienced traders to formulate trading strategies. For example, if a stock is approaching a very strong resistance level, a trader may prefer to...
QuantShare
The Most Powerful and Complete Trading Software Quantshare is a desktop application that allows trader to monitor and analyze the market. You can display charts, add indicators, create watchlis...
Stock Picking Software
Stock Picking Software automates the task of identifying the best stocks and the best time to buy those stocks. This software can sometimes be programed by the user and sometimes comes pre-progra...
Order Types
Order Types offered in our Stock Market Game: Market Orders, Limit Orders, Stop Market Orders, Stop Limit Orders and Trailing Stop Orders The post Order Types appeared first on HowTheMarketWor...
Order
An investor's instructions to a broker or brokerage firm to purchase or sell a security. Orders are typically placed over the phone or online. Orders fall into different available types which all...
Penny Stocks
Penny stocks are stocks with a share price of $5 or less. The post Penny Stocks appeared first on HowTheMarketWorks .
No-Load Mutual Fund
A no-load mutual fund in which shares are sold without a commission or sales fee. The notion for this is that the shares are allocated directly by the investment company, rather than going throug...
Open End Mutual Funds
An open end mutual fund don't have limits on the quantity of shares the fund will issue. Provided that demand is requested often, the fund will continue to issue shares no matter the number of in...
Stock Charts
Definition: With stock charts, you can view as much as 20 years of data or as little as a few minutes with a variety of line styles, color pallets and comparison features such as technical indica...
Getting and Understanding Stock Quotes
A stock quote is a list of prices (generally bid, ask and last) for a stock at a particular point during the trading day. Stocks used to be quoted in fractions, but now most exchanges use decimal...
Trading Halts
A Trading Halt is the temporary suspension of trading of a security for a specific period of time. Trading Halts typically last for an hour, but can extend into days. The post Trading Halts ap...
Time Decay
Time Decay is the inclination for options to decrease in worth as the expiration date draws near. The extent of the time decay is inversely connected to the changeability of that option. The po...
Sharpe Ratio (Advanced)
A Sharpe Ratio calculates the extra return you make compared to the extra risk you take on. The post Sharpe Ratio (Advanced) appeared first on HowTheMarketWorks .
Naked Short Selling
The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not ...
Short Proceeds
The cash received from the short sale of a security. The interest return from investment of the short proceeds is usually divided between the short seller, who gets partial “use of proceeds,”...
Stock Order Term
Video explaining the time period over which an order that you are placing is valid. The post Stock Order Term appeared first on HowTheMarketWorks .
Selling Short
In finance, short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments, with the intention of subsequently repurchasing them ("cove...
Stop Loss Order
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. The post Stop Loss Order app...
Preferred Stock
Preferred stock is a special class of stock issued by a company that pays dividends. Preferred stock is more like a bond than true stock because the main appeal is dividend income. Most preferred...
Ticker Symbol
Three or four characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it se...
P/E Ratios
The price to earnings ratio is a useful tool but certainly not the holy grail of investing as it is sometimes made out to be. The post P/E Ratios appeared first on HowTheMarketWorks .
Trailing Stop
Trailing Stop is a Stop Loss order which is placed as a percentage value as opposed to an absolute dollar value. The order will only execute if the price of the security falls by a certain percen...
Technical Analysis
Technical Analysis is the use of technical indicators comprising of statistics using past market information to predict which direction the security price will move. The post Technical Analysis...
Total Asset/Equity Ratio
Asset/Equity Ratio is the ratio of total assets divided by stockholders' equity. The post Total Asset/Equity Ratio appeared first on HowTheMarketWorks .