A trading desk is a place in a bank, brokerage, or other entity that trades financial instruments. An equity desk trades stocks and a fixed income desk trades fixed income.
Archive for the ‘Grow Page’ Category
A Trading Desk is…
Monday, August 10th, 2009A Trader is…
Monday, August 10th, 2009A trader is an employee of a broker-dealer, investment company, or other financial institution who specializes in handling the purchase and sale of securities for the firm or its clients. Anyone can be an independent trader by trading their account themselves.
A Hedge is…
Monday, August 10th, 2009A hedge is a financial strategy used to neutralize the risk of a certain bet. For example, an investor might buy a security in the health-care sector while hedging his or her bet by purchasing another security in the finance sector. The reason for the difference in investments is that if the value of one security goes down, the other might still go up. In plain terms it means covering your investments.
Market Analysis is…
Monday, August 10th, 2009Market analysis is the study of technical, corporate, and market data for the purpose of accurately predicting movements in the market. Basically, it’s keeping smart on financial happenings.
Day Trading is…
Friday, August 7th, 2009Day trading is a kind of trading in which you buy and then sell a stock or other security on the same day, same hour, or same minute, to take advantage of a quick change in the price of the stock. Day traders, instead of taking a long-term view on valuation, look for short-term market inefficiencies. You get in, and you get out!
Monetization is…
Wednesday, August 5th, 2009Common Stock is…
Wednesday, August 5th, 2009Common stock is a form of stock that gives the shareholder equity ownership in a company. This ownership includes voting rights that can be exercised in corporate decisions like choosing the Board of Directors. Shareholders of common stock may receive dividends (if the company shares profits), but only after preferred stock owners have received their dividends.
A Bear Trap is…
Wednesday, August 5th, 2009A bear trap is the problem that faces short sellers when stock prices stop falling and start rising again. Short sellers sell stock thinking they can buy it back cheaper, but when they get stuck in a bear trap, they actually have to buy the stock back at a higher price.
Value Added is…
Wednesday, August 5th, 2009Value added is the amount by which the sale price of a commodity exceeds the value of the materials and labor used to produce it. In mathematical terms, value added = value after production − costs of production.