Posts Tagged ‘securities’

Arbitrage is…

Wednesday, October 6th, 2010

Arbitrage is a trading technique in which an investor (or sometimes a computer program) finds the same instrument (like a stock) offered at a lower price in one market and a higher price in another. The investor then buys the instrument at the lower price and immediately sells it in the other market for a higher price.

An Option is…

Wednesday, August 5th, 2009

An option is a contract that gives you the right to buy (or sell) a security at a preset “strike” price on a preset “expiration” date. As the name suggests, you have the option, not the obligation, to buy (or sell) on the day specified in the contract.

A Trade is…

Wednesday, July 29th, 2009

A trade is a transaction involving one party (the buyer) buying a security, or something of value, from another party (the seller). Basically, it’s when two parties exchange items of approximately equal value. So, while you can trade stocks, you can certainly also trade baseball cards.

Treasury Notes are…

Monday, July 27th, 2009

Treasury notes (T-Notes) are government securities that pay a set interest rate every six months. The notes are sold with set maturities (how long until they reach face value) of 2, 3, 5, 7, and 10 years.

A Security is…

Friday, July 17th, 2009

A security is an instrument that shows your ownership in a firm or with federal, state, or local government either through stocks, bonds, or other types of investments.