Odd Lot A technical analysis theory/indicator based on the assumption that the small individual investor is always wrong. Therefore, if odd lot sales are up - that is small investors are selling stock - it is probably a good time to buy.In the stock market shares are generally bought and sold in MARKET LOTS, which are easy to trade. Any number of shares less than the market … [Read more...]
dividend and shares
Omitted Dividend Dividend that had to be declared at the board meeting but is not taken up by the directors for the time being. This may be because the company has run into financial losses and it thinks better to conserve the company’s resources than to pay out cash. Omitted dividend typically causes a fall in the company’s share prices, particularly if a dividend was … [Read more...]
negotiable instrument
Negotiable Instrument A negotiable instrument is a specialized type of "contract" for the payment of money that is unconditional and capable of transfer by negotiation. Common examples include cheques, banknotes (paper money), and commercial paper.An instrument (contractual document) which is readily transferable. Nervous Market Stock market which is reacting sharply to … [Read more...]
national depository system
Naked Option A CALL OPTION for which the seller does not own the supporting shares, and which he hopes to buy from the market, believing that the price will fall. If it does, he makes a profit on the difference; if it doesn’t, and rises, the seller is caught in a naked position, and must sustain a loss by buying at the higher price. See also SELLING SHORT. Naked Position One … [Read more...]
murphy’s law and startegies
Modern Portfolio Theory Modern portfolio theory (MPT) is a theory of investment which attempts to explain how investors can maximize return and minimize risk. Although MPT is widely used in practice in the financial industry and several of its creators won a Nobel prize for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as … [Read more...]