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Nasdaq Composite Index The Nasdaq Composite Index measures all Nasdaq domestic and non-United States based stocks listed on the Nasdaq. Today it includes more than 5,000 companies, more than most other stock market indexes, and is one of the most widely-followed and quoted major market indexes. |
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NIKKEI index Index of 225 leading stocks traded on the Tokyo Stock Exchange. |
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New York Stock Exchange (NYSE) This oldest and largest stock exchange in the United States is located on Wall Street in New York City. Responsible for setting policy, supervising member activities, listing securities, overseeing the transfer of member seats. Also called the Big Board. |
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offer An indication by an investor, trader, or dealer of a willingness to sell a security. |
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open trades Current trades that are still held active in the customer's account. |
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option The right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a fixed price, up to some specified date in the future. |
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over-the-counter (OTC) A security that is not traded on an exchange, usually due to an inability to meet listing requirements. For such securities, broker/dealers negotiate directly with one another over computer networks and by phone, and their activities are monitored by the NASD. Also called unlisted. |
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plus-tick rule See uptick rule. |
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point For stocks, $1.00 per share. |
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preferencing The attempt by a trader to direct a limit order (bid or offer) to a specific counterparty making a market in a security. |
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Primary Market The Primary Market (or First Market) is where the first buyer of a newly issued security buys that security. All subsequent trading of that security is done in the Secondary Market (or its derivatives, the Third Market, Fourth Market, Fifth Market, or Sixth Market). |
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prediction The attempt to make money by making trading decisions, employing analysts to predict prices. (Great traders make money by "cutting losses and letting profits run," which has nothing to do with prediction.) See also speculation. |
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quote The highest bid or lowest ask available on a security at any given time. |
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range The difference between the high and the low price during any given period. |
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resistance A price level at which rising prices have stopped rising and have either stabilized or started falling. The sellers are in control. |
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retail investor One who purchases securities for oneself, as opposed to the institutional investor who purchases for others. Also called individual investor or small investor. |
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retracement A price movement in the opposite direction of the previous trend. |
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risk The likelihood of loss or less-than-expected returns. |
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Russell 2000 An index considered to be a benchmark of small cap stocks in the United States. |
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