Market Cycle Time gap between the two most recent lows or highs of S&P 500, demonstrating net performance of a fund during up and down markets. The cycle is complete at a level where the S&P dips 15% below highest point or rises 15% above lowest point. … [Read more...]
Market Impact Costs
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Market Impact Costs Outcome of a dealer’s concession on price and a bid/ ask spread. Also referred to as price impact costs. … [Read more...]
Market Model
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Market Model Also called single-index model. States that return generated by a security is dependent on that generated by the market portfolio and the degree to which the security responds as evaluated by beta. Also, the return depends on some conditions unique to the business. In … [Read more...]
Market Neutral
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Market Neutral Investment strategy that aims at making gains during phases of declining and increasing prices. Achieved by taking long and short positions in different stocks to balance gains and losses arising from different factors influencing returns. … [Read more...]
Market Order
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Market Order Order or instruction to execute a sale or purchase at current price immediately. … [Read more...]
Market Overhang
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Market Overhang Concept that in some circumstances, businesses may want to sell shares but defer sale to a future date because bulk sales may push down share prices under prevailing conditions. In such case, the consequent fear of sale of securities may restrict the rate of … [Read more...]
Market Portfolio
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Market Portfolio A portfolio where all assets available in the market are included. The proportion of the market value of each asset to total market value of all assets determines each asset’s proportion in the portfolio. … [Read more...]
Market Price of Risk
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Market Price of Risk An evaluation of the risk premium or additional return demanded by investors in exchange for bearing the risk. Also represented as the portfolio’s reward-to-risk ratio. … [Read more...]
Market Prices
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Market Prices The sum that interested buyers are willing to pay for acquisition of a specific asset from seller. The seller and buyer should be independent parties and the exchange should involve monetary consideration. … [Read more...]
Market Psychology
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Market Psychology Reigning sentiment that is prevailing in the market at any particular time. Represents the overall investing mentality or sentiment that impacts investment decisions. … [Read more...]
Market Return
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Market Return The yield attained on the portfolio of assets. … [Read more...]
Market Risk
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Market Risk Related: systematic risk. Risk that do not get eliminated by diversification. … [Read more...]
Market Sectors
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Market Sectors The categorization of bonds based on characteristics of issuer. For example, state government bonds, utility bonds, corporate bonds. … [Read more...]
Market Segmentation Theory or Preferred Habitat Theory
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Market Segmentation Theory or Preferred Habitat Theory Theory of biased expectations that holds that the yield curve shape depends on demand and supply for securities of different maturity periods. … [Read more...]
Market Surveillance
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Market Surveillance NASDAQ division in charge of investigating and averting unfair, manipulative, or unlawful trading practices on the exchange. … [Read more...]
Market Timer
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Market Timer Investment manager who assumes that he/ she can make accurate stock market movement predictions. … [Read more...]
Market Timing
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Market Timing Phenomenon where market investment is enhanced on basis of expectations that T-bills will be outperformed by the market. … [Read more...]
Market Timing Costs
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Market Timing Costs Costs attributable to other occurrences relevant to the stock, and that arise from fluctuations in price at the point of transaction. … [Read more...]
Market Value
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Market Value (1) Value believed to be firm’s worth by its investors. Formula: number of shares outstanding x current market price of a share. (2) The trading price at which the security can be purchased or sold at a given time. … [Read more...]
Market Value Ratios
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Market Value Ratios Ratios comparing market price of common stock of a firm to selected items in the financial statement. … [Read more...]
