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Financial Terms | |
Breakout |
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Definition of BreakoutBreakoutA rise in a security's price above a resistance level (commonly its previous high price) or drop
Related Terms:accepted quality level (AQL)the maximum limit for the number of defects or errors in a process Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating Adjusted Income from ContinuingOperations Reported income from continuing operations Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to Ask priceA dealer's price to sell a security; also called the offer price. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. ![]() Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Basis priceprice expressed in terms of yield to maturity or annual rate of return. batch-level costa cost that is caused by a group of things Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically Builder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the BuyTo purchase an asset; taking a long position. Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the Buy-backAnother term for a repo. Buy inTo cover, offset or close out a short position. Related: evening up, liquidation. ![]() Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated Buy on closeTo buy at the end of the trading session at a price within the closing range. Buy on marginA transaction in which an investor borrows to buy additional shares, using the shares Buy on openingTo buy at the beginning of a trading session at a price within the opening range. Buy/Sell AgreementThis is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement. Buy-side analystA financial analyst employed by a non-brokerage firm, typically one of the larger money BuydownsMortgages in which monthly payments consist of principal and interest, with portions of these Buying the indexPurchasing the stocks in the S&P 500 in the same proportion as the index to achieve the BuyoutPurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving Clean priceBond price excluding accrued interest. Conditional BuyerOne of two parties to a conditional sale agreement, the other being the conditional seller. Conditional SellerOne of two parties to a conditional sale agreement, the other being the conditional buyer. Confidence indicatorA measure of investors' faith in the economy and the securities market. A low or Confidence levelThe degree of assurance that a specified failure rate is not exceeded. Consumer Price Index (CPI)The CPI, as it is called, measures the prices of consumer goods and services and is a Consumer Price Index (CPI)An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation. Conversion parity priceRelated:Market conversion price Convertible priceThe contractually specified price per share at which a convertible security can be Convertible securityA security that can be converted into common stock at the option of the security holder, Debt SecurityA security representing a debt relationship with an enterprise, including a government Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Derivative securityA financial security, such as an option, or future, whose value is derived in part from the Devaluation A decrease in the spot price of the currency
Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Dollar price of a bondPercentage of face value at which a bond is quoted. Drop lockAn arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed Drop, theWith the dollar roll transaction the difference between the sale price of a mortgage-backed passthrough, Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Embodied Technical Changetechnical change that can be used only when new capital embodying this technical change is produced. Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Equity Buy-BackRefers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount. Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. Escalating Price OptionA nonqualified stock option that uses a sliding scale for Exchangeable Securitysecurity that grants the security holder the right to exchange the security for the Exercise priceThe price at which the underlying future or options contract may be bought or sold. Exercise priceThe price set for buying an asset (call) or selling an asset (put). Fair market priceAmount at which an asset would change hands between two parties, both having Fair priceThe equilibrium price for futures contracts. Also called the theoretical futures price, which equals Fair price provisionSee:appraisal rights. Financial analystsAlso called securities analysts and investment analysts, professionals who analyze Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Fixed-income securityA security that pays a specified cash flow over a Fixed price basisAn offering of securities at a fixed price. Fixed-price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Flat price riskTaking a position either long or short that does not involve spreading. floating-rate securitysecurity paying dividends or interest that vary with short-term interest rates. Forward buyingThe purchase of items exceeding the quantity levels indicated Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. fundamental analystsanalysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects. Futures priceThe price at which the parties to a futures contract agree to transact on the settlement date. Government sponsored enterprisesPrivately owned, publicly chartered entities, such as the Student Loan Held-to-Maturity SecurityA debt security for which the investing entity has both the positive Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. High-low-close chartA financial chart usually used to plot the high, low, high-low methoda technique used to determine the fixed High-Powered MoneySee money base. High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. High-Risk Small BusinessFirm viewed as being particularly subject to risk from an investors perspective. High-yield bondSee:junk bond. Highly leveraged transaction (HLT)Bank loan to a highly leveraged firm. Host securityThe security to which a warrant is attached. Hybrid securityA convertible security whose optioned common stock is trading in a middle range, causing Income from Continuing OperationsAfter-tax net income before discontinued operations, Investment analystsRelated: financial analysts Invoice priceThe price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered. Law of one priceAn economic rule stating that a given security must have the same price regardless of the law of one priceTheory that prices of goods in all countries should be equal when translated to a common currency. Leading economic indicatorsEconomic series that tend to rise or fall in advance of the rest of the economy. Leading IndicatorA variable that reaches a turning point (a peak or a trough) before the economy reaches a turning point. Level-coupon bondBond with a stream of coupon payments that are the same throughout the life of the bond. Level payThe characteristic of the scheduled principal and interest payments due under a mortgage such that Level PremiumA premium that remains unchanged throughout the life of a policy Level Premium Life InsuranceThis is a type of insurance for which the cost is distributed evenly over the premium payment period. The premium remains the same from year to year and is more than actual cost of protection in the earlier years of the policy and less than the actual cost of protection in the later years. The excess paid in the early years builds up a reserve to cover the higher cost in the later years. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |